Microsoft has announced significant changes to its licensing model that will impact organisations with Enterprise Agreements (EA). Starting 1^st of November 2025, Microsoft will eliminate volume-based discounts for online services under EA and MPSA (Microsoft Products and Services Agreement), aligning all customers to public list pricing (Level A).

For many organisations, this means higher costs, reduced flexibility, and the need to rethink their licensing strategy. At the same time, Microsoft is deepening its investment in the Cloud Solution Provider (CSP) program, introducing new options that make CSP not just an alternative, but a more strategic and cost-effective choice.

This shift presents an essential opportunity for organisations to review their licensing roadmaps and unlock greater value from their Microsoft investments.

Read on to learn what’s changing in EA, why CSP is becoming the smarter choice, why you need to act now, and how Professional Advantage can assist in your transition.

What’s Changing with Enterprise Agreements

No more volume discounts. From November 2025, all EA customers will pay the same as the public Microsoft.com list prices for online services.
Impact at renewal. These changes occur when you renew your EA or purchase new online services.
Exclusions. On-premises software and specific government or education price lists are not affected.

For large organisations that relied on EA discounts (often 6-12%), this means increased licensing costs at the next renewal.

Why CSP is the Smarter Choice

Microsoft is repositioning CSP as the hero licensing model for the future. Here’s why:

Cost Predictability. CSP now offers three-year subscription terms for Microsoft 365 E3 and E5. This allows organisations to lock in pricing and avoid exposure to EA cost increases.
Promotional Discounts. Microsoft offers 10% discounts for “new-to-Microsoft 365 E3 or E5” clients who commit to CSP three-year subscriptions. These promotions can soften the financial impact of moving away from EA.
Flexible Billing. Unlike EA’s rigid terms, CSP provides multiple billing options such as monthly, annual, or upfront, so you can align licensing spend with your budget cycles.
Smooth Transitions. Microsoft has introduced tools within Partner Centre that make migrating from EA to CSP easier with minimal disruption.
Access to Partner Value. Working with a CSP partner, especially Tier 1 CSPs like Professional Advantage, means you get more than just licenses. You benefit from ongoing advisory, managed services, local technical and billing support, and value-added solutions like security, compliance, AI adoption, and a self-service CSP Portal for managing your subscriptions.

Why Act Now

With the November 2025 deadline approaching, organisations should act now to:

Evaluate EA renewal timelines.
Lock in CSP promotions before they expire.
Build a licensing strategy that balances cost savings with long-term flexibility.

Waiting until renewal could expose your organisation to unexpected cost increases, while early planning allows you to transition smoothly and take advantage of Microsoft’s current CSP incentives.

Microsoft’s licensing changes are reshaping the landscape, and CSP is evolving into a program that delivers cost stability, choice, and added value.

At Professional Advantage, we see these changes as a chance for our clients to gain more control and unlock added value by helping you in these ways:

Licensing Strategy. We can help you model options to show you the financial and operational impact.
Tailored Roadmaps. We will design a CSP migration plan that aligns with your IT and business goals, whether you are adopting Microsoft 365, Copilot, Azure, or advanced security solutions from 1 to 3 year CSP options.
Seamless Migration. Our team will ensure a smooth transition to your new licensing plan and minimise user disruption.
Ongoing Optimisation. As your Tier 1 CSP partner, we will monitor your usage, recommend optimisations, help you take advantage of new Microsoft promotions, and provide access to a dedicated client portal.

By partnering with Professional Advantage, you can confidently navigate this transition while maximising your Microsoft investment and aligning with the direction Microsoft is taking its licensing programs.