Microsoft Enterprise Agreement Changes: What You Need to Know Before November 1st
From November 1st, 2025, Microsoft is making a significant change to how it prices its Enterprise Agreements (EAs) - and it’s something every enterprise business should be aware of.
For years, Microsoft’s EA pricing model has been based on a tiered volume discount system. Customers were grouped into bands (A through D) depending on the number of licenses they purchased, with larger organisations benefiting from deeper discounts. But that’s about to change.
What's Actually Changing?
Microsoft is removing volume-based pricing tiers for Online Services across Enterprise Agreements, Microsoft Products and Services Agreements (MPSA), and Open Value Subscription Agreements (OSPA). Here's what this means for you:
- All customers will now pay Level A pricing, regardless of their size or historical spend.
- The change applies to Online Services only including Microsoft 365, Dynamics 365, Power Platform, GitHub, and others.
- Changes will take effect at renewal or when purchasing new services not already listed on the Customer Price Sheet.
- On-premises software and Azure purchased through EA remain unaffected.
Why It Matters
This isn't just a pricing tweak; it's a significant shift that could substantially increase your Microsoft costs. Organisations previously benefiting from Level B, C, or D pricing may see their discounts vanish overnight, with potential price increases of 6% to 12% or more.
This shift also comes at a time when Microsoft has been adjusting its pricing more frequently, particularly in response to currency fluctuations and global market conditions.
For enterprise businesses managing hundreds or thousands of seats, the financial impact could be substantial.
What Should Enterprise Level Businesses Do Next?
Every organisation's Microsoft estate is different, so there's no one-size-fits-all response. However, this change creates an opportunity to reassess your entire Microsoft licensing strategy.
Many enterprises are now exploring the Cloud Solution Provider (CSP) program as an alternative to traditional Enterprise Agreements.
How CSP Could Offer More Flexibility and Value
Unlike the rigid Enterprise Agreement model, CSP offers:
- More flexible contract terms, including monthly, annual, or even multi-year options.
- No minimum seat requirements, making it suitable for both large and growing organisations.
- The potential for competitive pricing, especially when working with the right partner.
- More responsive support, with a direct relationship to your CSP partner.
As an indirect Microsoft CSP, Chess ICT works closely with enterprise clients to help them navigate licensing changes, optimise costs, and ensure compliance - all whilst providing more agile support than traditional EA channels.
Let's Talk About Your Options
If you're currently on an Enterprise Agreement or due for renewal soon, now is the time to explore your options. We're offering a free, no-obligation licensing impact assessment to help you understand how these changes affect your organisation and whether CSP could deliver better value.
Book a consultation with our Microsoft licensing experts to discuss your current setup and explore potential savings.
About the author
Chess
Chess is one of the UK’s leading independent and trusted technology service providers, employing more than 240 skilled people across the UK, supporting over 18,000 organisations.
We believe IT should work for you, reduce costs, deliver efficiency, keep you secure, enhance your work-life balance, improving performance. At Chess, we’re passionate about our unique culture and our continuous investment in our people to be industry experts.
We’re extremely proud that our people voted us No.1 in ‘The Sunday Times 100 Best Companies to Work for’ list 2018, and we continue to celebrate more than 17 years in the top 100.