For many organisations, the upcoming Microsoft licensing renewal cycle has become a natural point to reassess long standing Enterprise Agreements.
The shift toward the Cloud Solution Provider model is accelerating, driven not just by flexibility but by clear and measurable cost savings. With Microsoft modernising its commercial models and removing long trusted volume discounts, businesses are recognising that renewing an EA often leads to higher overall spend with less commercial agility.
This is why more organisations are now choosing CSP as their primary route for Microsoft licensing. The value is compelling, the savings are real, and the timing has never been more relevant.
or many organisations, the upcoming Microsoft licensing renewal cycle has become a natural point to reassess long standing Enterprise Agreements. The shift toward the Cloud Solution Provider model is accelerating, driven not just by flexibility but by clear and measurable cost savings. With Microsoft modernising its commercial models and removing long trusted volume discounts, businesses are recognising that renewing an EA often leads to higher overall spend with less commercial agility. This is why more organisations are now choosing CSP as their primary route for Microsoft licensing. The value is compelling, the savings are real, and the timing has never been more relevant.
While the commercial landscape continues to evolve, two factors remain constant: the removal of EA price tiers and the rise of flexible consumption models.
Independent industry research reinforces the financial case for shifting away from rigid multi‑year commitments.
Gartner notes that organisations routinely overspend under traditional EA models due to fixed quantities and annual true ups, which leads to shelfware and budget wastage.
Rightsizing ahead of renewals can reduce EA overspend by double digit percentages, but CSP removes the issue entirely through monthly or annual adjustability.
From 2025 onward, Microsoft’s move to a single price structure for Online Services removes the historic A to D EA discount tiers.
This leads to increases of between 6-12% for organisations that previously qualified for higher tier discounts.
Research highlights that mid sized organisations moving to CSP models have achieved up to 25% savings by avoiding the inflexibility of annual EA commitments and reducing over provisioning.
CSP partners can play an active role in lowering consumption costs.
For example, Azure optimisation services, governance frameworks, and right sizing help organisations lower cloud spend further.
Industry reports show that proactive governance and optimisation can reduce cloud consumption costs by up to 35%.
EA vs CSP at a Glance
Enterprise Agreement
- Fixed three year term
- Minimum 500 users or devices
- Rising pricing due to removal of discount tiers
- Annual true ups and limited flexibility
- Higher risk of paying for unused licences
Cloud Solution Provider
- No minimum commitment
- Monthly or annual flexibility
- Ability to scale licences up or down in real time
- Partner led support included
- Predictable billing aligned to actual use
Why This Matters During Your Renewal Window
Microsoft is actively encouraging organisations to evaluate modernised procurement routes such as CSP and MCA related frameworks.
For many organisations, EA renewals now come with increased annual costs and reduced commercial advantage. Choosing an alternative route during your renewal window allows you to secure pricing stability, eliminate overspend, and align licensing to today’s cloud centric reality.
This shift is not about abandoning EA entirely but about selecting the model that provides the best commercial outcome. Increasingly, that model is CSP.
How Cisilion Helps You Save More with CSP
Cisilion supports organisations across the full licensing lifecycle.
Our experts help you uncover savings, optimise usage and forecast future spend with clarity and confidence.
Our approach combines deep technical expertise with commercial modelling to ensure you see measurable value.
Our value includes
- A complete licensing review to identify overspend
- Forecast modelling to compare EA and CSP cost trajectories
- Azure cost optimisation that delivers average savings of around 35 percent
- Partner led support included as part of a CSP relationship
- Flexible commercial options including monthly and annual commitments
- Visibility and governance tooling through our managed services platform
We help you reduce spend, strengthen governance and build a predictable and efficient Microsoft estate.
With the removal of EA discount tiers and the rise of flexible consumption models, the financial advantage has shifted toward CSP. Organisations that move early secure greater savings, reduce financial risk and gain the commercial agility needed for ongoing digital transformation.
If you want deeper insight into how much you could save by switching or need guidance on your upcoming renewal, our team is ready to support you.