August Microsoft Licensing Update: Enterprise Agreement Pricing Changes

Microsoft has announced a major change to its Enterprise Agreement pricing model, effective November 1st, 2025. Discount pricing for online services under Enterprise Agreements (EA) and Microsoft Products and Services Agreements (MPSA) will be removed for commercial organizations. 

This move brings EA and MPSA pricing in line with the Cloud Solution Provider (CSP) model, marking a significant shift toward pricing consistency across Microsoft’s licensing programs. IT professionals should prepare for a new era of licensing where CSP, EA, and MPSA pricing are nearly identical, with only a few exceptions.

In this episode of the Demystifying Microsoft podcast, host Wade Walker (VP, Microsoft Alliance at the Sourcepass MCOE) breaks down Microsoft’s latest announcement on Enterprise Agreement pricing changes. Wade explains what the new pricing consistency model means for Microsoft users, how it impacts Enterprise Agreements and CSP licensing, and what organizations should do to prepare for the November 1st rollout.

Key Moments

• 00:01 — Introduction and overview of Microsoft’s announcement
• 01:45 — What is an Enterprise Agreement? (Three-year contract, price lock, covered products)
• 03:36 — Microsoft’s new pricing consistency model explained
• 05:18 — Impacts of the change: EA and MPSA pricing now match CSP pricing
• 07:08 — Why organizations should consider consolidating licensing to CSP
• 08:30 — Three-year price lock options now available in CSP for key products
• 09:36 — Personal perspective on the evolution from EA to CSP
• Outro — Where to learn more and connect with experts
  
  

What is Microsoft’s Enterprise Agreement and why does it matter?

An Enterprise Agreement (EA) is a three-year contract that locks in pricing for Microsoft products and services, including Windows Server, SQL Server, and Microsoft 365 offerings like E3, E5, and Business Premium. Historically, EAs provided tiered discounts based on organization size, but this is changing.

How does the new pricing model affect IT procurement?

Starting November 1st, Microsoft will remove discount pricing for online services under EA and MPSA for commercial organizations. Pricing will now align with CSP rates published on Microsoft.com. This means less variability and more transparency, but also the end of legacy discounts for larger organizations.

Should organizations migrate to CSP?

Most organizations with EA or MPSA agreements already use CSP for some licensing. With pricing now consistent across all models, consolidating to CSP can simplify management.

CSP also now offers three-year price lock options for Microsoft 365 E3, E5, Teams Enterprise, E5 Security, and E5 Compliance subscriptions, making it a viable alternative to EA for long-term planning.

What are the top impacts of Microsoft’s Enterprise Agreement pricing changes?

1. Pricing Consistency: EA, MPSA, and CSP pricing will be nearly identical.
2. Licensing Consolidation: Organizations should consider migrating all licensing to CSP for simplicity.
3. Competitive CSP Providers: CSP providers can now compete directly with EA pricing, except for the three-year price lock, which is now also available in CSP for select products.

Optimize your Microsoft Licensing Strategy with Sourcepass MCOE

Navigating Microsoft’s evolving licensing landscape can be complex, especially with the latest changes to Enterprise Agreement pricing. Our team at Sourcepass MCOE is committed to helping Microsoft users, procurement teams, and licensing decision-makers cut through the noise, streamline licensing, and maximize the value of your Microsoft investment.

Whether you’re evaluating the shift to CSP, planning for long-term price protection, or seeking clarity on how these updates affect your organization, our experts are ready to provide straightforward guidance and hands-on support. We understand the challenges of managing Microsoft environments and are here to help you make informed decisions that drive measurable results.

For ongoing insights and practical strategies, subscribe to the Demystifying Microsoft Podcast.

If you have questions or need personalized assistance, reach out to one of our Microsoft licensing experts today.