Microsoft has announced one of its most significant licensing changes in more than two decades. Beginning November 1, 2025, the company will retire volume-based discounts under the Enterprise Agreement (EA) and Microsoft Products and Services Agreement (MPSA). From that date forward, all online services will default to baseline list pricing — regardless of organization size or purchase volume.
This change will affect how organizations budget, plan, and purchase Microsoft subscriptions. Let’s break down what’s changing, why it matters, and how to prepare.
What’s Changing?
For years, Microsoft applied a tiered pricing model for EA customers:
- Level A – standard list price
- Level B – volume discount (approx. 6%)
- Level C – larger discount (approx. 9%)
- Level D – largest discount (up to 12%)
Starting in November, these tiers will disappear for online services. Every customer, whether purchasing 500 or 50,000 seats, will pay Level A pricing.
Key details include:
- Applies to cloud services only – Microsoft 365, Dynamics 365, Azure, Windows 365, and security/identity subscriptions.
- On-premises unaffected – perpetual software licensing under EA and MPSA will continue under current terms.
- Global rollout – all commercial and government EA/MPSA customers (except U.S. federal, state/local, and education customers) are included.
Why It Matters
1. Higher Costs for Many Customers
If your organization currently benefits from Level B–D discounts, expect subscription costs to increase by 6–12% once your next renewal falls after November 1, 2025.
2. A Push Toward Simplification
Microsoft’s stated goal is to align pricing across channels, reducing complexity and creating consistency. While this improves transparency, it also removes a key cost advantage of the EA model.
3. CSP Will Become More Attractive
With EA discounts gone, many organizations will find the Cloud Solution Provider (CSP) program a compelling alternative. CSP offers monthly billing, discounted pricing compared to standard list prices, flexible scaling, and partner-managed services — often providing more value than a flat EA renewal.
How to Prepare Before November
The impact of this change depends on your current licensing model, renewal timeline, and future growth plans. Here are some practical steps to take now:
- Review your renewal dates: If your EA or MPSA is expiring soon, consider renewing before October 31, 2025, to lock in existing discounts.
- Audit current usage: Identify inactive or underutilized licenses and optimize before renewal to reduce waste.
- Compare licensing options: Evaluate whether EA or CSP best aligns with your cost and flexibility needs.
- Engage with a trusted partner: A licensing advisor can help model different scenarios, negotiate terms, and ensure your strategy minimizes costs.
The removal of EA volume discounts is more than just a pricing adjustment. It reflects Microsoft’s broader move toward consumption-driven, cloud-first licensing.
For organizations, the shift means it’s time to:
- Rethink procurement strategies
- Plan renewals strategically
- Explore alternative licensing programs
- Budget for potential cost increases
By acting now, businesses can avoid surprises in November and turn this change into an opportunity to streamline and modernize their Microsoft licensing approach.
Final Thoughts
Microsoft’s November 2025 licensing shift marks the end of an era for volume-based EA discounts. While many organizations will see higher costs, this change also creates an opportunity to reimagine how you approach Microsoft licensing.
Instead of relying on legacy discount structures, businesses now have a chance to:
- Streamline licensing portfolios
- Explore more flexible programs like CSP
- Align cloud investments more closely with actual business needs
The organizations that act now—by auditing usage, evaluating alternatives, and engaging trusted licensing partners—will be better positioned to minimize costs and maximize value.
In short, the retirement of EA discounts is not just a challenge; it’s a chance to modernize your licensing strategy and set the foundation for a smarter, more cost-effective cloud journey.
Ready to Prepare for November?
At Vistas Cloud, we’re not just advisors—we’re a Tier-1 Microsoft Certified Cloud Solutions Provider. We help organizations confidently navigate Microsoft’s evolving licensing landscape while ensuring maximum value and flexibility.
✔️ Discounted Licensing – often equal to or greater than your current EA discounts
✔️ Dedicated Support – Vistas provides a dedicated support team of Microsoft-certified engineers, with the option to escalate directly to Microsoft Premier Support if an issue remains unresolved
✔️ Tailored Billing – customized solutions to fit your unique business model
✔️ Certified Expertise – engineers specialized in Microsoft 365, Azure, Intune, and Defender
✔️ Customized Proposals – receive a tailored discounted licensing plan from Vistas Cloud
As a trusted Microsoft CSP, we deliver end-to-end support: from solution design and deployment to long-term managed services. With Vistas Cloud, your business stays ahead, protected, and empowered in the modern cloud landscape.
Don’t wait until November 1, 2025. Contact Vistas Cloud today to review your licensing strategy, lock in savings, and build a smarter path forward with Microsoft.
