How to Turn Microsoft’s 2025 Licensing Changes into a Competitive Edge
In 2025, Microsoft is making one of the most significant changes to Enterprise Agreement (EA) and Microsoft Products & Services Agreement (MPSA) pricing in years.
For organisations prepared to act early, it’s not a threat — it’s a chance to rethink, optimise, and modernise your Microsoft licensing strategy.
The Big Change: Price Level Discounts Ending
From 1 November 2025, the traditional A–D volume price level discounts for Online Services purchased through EA and MPSA will be removed.
At renewal, or when adding new Online Services not already on your price sheet, all customers will move to a single, standardised price aligned to Microsoft.com list pricing.
What’s Not Changing:
- On-premises software licensing
- Cloud Solution Provider (CSP) agreements
- Education and Public Sector-specific agreements
For customers currently enjoying higher-level discounts (B–D), this change could alter the value equation — and creates the perfect opportunity to review whether EA/MPSA is still the right fit
Why This is the Perfect Time to Review
Licensing isn’t just about procurement. It’s about aligning your commercial model with your business and technology strategy. This change is a natural point to ask:
- Is my current licensing model the most cost-effective for the way we work today?
- Would more flexibility in scaling and billing better support my business?
- Can I take this moment to bundle licensing with AI, security, and device strategies for greater ROI?
Exploring Alternatives: CSP and the New 3-Year Term Option
For some organisations, EA/MPSA will remain the right choice. But for others, the Cloud Solution Provider (CSP) route offers greater flexibility, simpler management, and easier scaling.
And from 1 June 2025, CSP becomes even more compelling with the introduction of 3-Year term SKUs for products like Microsoft 365 E3/E5 and Teams Enterprise.
These combine:
- Price stability for 36 months (similar to EA)
- Flexibility to mix monthly, annual, and 3-year terms in the same tenant
- Commercial agility to adapt as needs change
This new option bridges the gap between long-term stability and short-term agility — and could be the ideal route for organisations rethinking their EA position.
How Cisilion Helps You Turn Change into Advantage
At Cisilion, we work with you to ensure your Microsoft licensing strategy is fit for today — and ready for tomorrow.
We bring:
- Deep Microsoft licensing expertise across EA, MPSA, and CSP
- Azure cost optimisation tooling for visibility and governance
- Industry-specific insight to align licensing with sector challenges
- Proven migration experience from EA/MPSA to CSP with minimal disruption
Your next steps
Don’t wait until renewal to understand your options. Whether you decide to defend your EA position or explore CSP, now is the time to model the impact and design the right approach for your business.
Book your Microsoft Licensing Review with Cisilion today — and turn the 2025 price level changes into your competitive advantage.