May Microsoft Licensing Update: 3-Year CSP Subscriptions Now Available

Microsoft licensing continues to evolve with new options designed to support long-term planning and pricing stability. 

In this month's update, Microsoft announced the availability of three-year Cloud Solution Provider (CSP) subscriptions for several of its most widely used Microsoft 365 products.

This change introduces a new level of flexibility for commercial customers, particularly those looking to align their Microsoft 365 investments with multi-year strategies. By offering extended terms for Microsoft 365 E3, E5, Teams Enterprise, and key security and compliance add-ons, Microsoft is enabling organizations to lock in pricing, simplify renewals, and better forecast IT budgets—without the need for an enterprise agreement.

What’s New

Starting June 1, Microsoft will offer three-year CSP terms for:

• Microsoft 365 E3 (with and without Teams)
• Microsoft 365 E5 (with and without Teams)
• Microsoft Teams Enterprise

Then, beginning July 1, the following add-ons will also be available with three-year terms:

• Microsoft 365 E5 Security
• Microsoft 365 E5 Compliance

These subscriptions are priced the same as their annual counterparts, with payment options including annual billing or full upfront payment.

Why It Matters

This update allows CSP partners and customers to:

• Lock in pricing for three years, similar to Enterprise Agreements
• Plan long-term projects with predictable costs
• Access advanced security and compliance tools without needing to switch to enterprise licensing

The E5 Security and Compliance add-ons include powerful tools like:

• E5 Security: Entra ID Plan 2, Defender for Office 365 Plan 2, Defender for Endpoint Plan 2, Defender for Identity, Defender for Cloud Apps
• E5 Compliance: Purview Compliance Manager, Information Protection, Data Loss Prevention, Insider Risk Management, Advanced eDiscovery, and more

Promotions and Planning Considerations

• A 10% discount is available starting June 9 for new customers purchasing Microsoft 365 E3/E5 or Teams Enterprise.
• A similar 10% promotion begins July 1 for the E5 Security and Compliance add-ons.
• A 100-seat minimum applies to all three-year subscriptions.
• These changes currently apply only to commercial customers—not nonprofit, education, or government sectors.

Next Steps for Microsoft Licensing Strategy with Sourcepass Center of Excellence for Microsoft

This update reflects Microsoft’s continued push to bring enterprise-grade capabilities to a broader audience. With three-year CSP terms now available, organizations can better align their licensing strategy with long-term business goals.

For more updates like this, subscribe to our YouTube channel for our monthly Microsoft podcast and follow us on LinkedIn. Our Microsoft licensing consultants at the Sourcepass MCOE are here to help you navigate these changes and make the most of your Microsoft investments.