Microsoft Removes EA Discounts: It's Time to Rethink Your Licensing Strategy

As of 1st November 2025, Microsoft will discontinue all volume-based discounts for Online Services purchased through Enterprise Agreements (EA), the Microsoft Products and Services Agreement (MPSA), and the Online Services Premium Agreement (OSPA).

Moving forward, every organisation will pay the same list price for services like Microsoft 365, Dynamics 365, Windows 365, GitHub and Microsoft’s security and compliance products.

This change marks the next step in Microsoft’s journey to simplify pricing and align customers with its Cloud Solution Provider (CSP) model, where flexibility, predictability and value-added partner services take centre stage.

What Is Changing?

• Volume discounts removed - Customers that once benefited from Level B, C or D discounted pricing will now pay the same Level A list price for Online Services such as Microsoft 365, Dynamics 365, Windows 365, GitHub and Microsoft security and compliance products (Microsoft).
• Renewals trigger new pricing – The change takes effect at renewal or with the purchase of new services post  1st November 2025.
• On-premises software and education are unaffected – These price lists are excluded.

• Level B customers (2,400–5,999 users) ~6%
• Level C customers (6,000–14,999 users) ~9%
• Level D customers (15,000+ users) ~12%

Why is Microsoft Doing This?

Microsoft is removing complexity, bringing consistency and shifting the focus from discounts to business outcomes.

“Microsoft is moving the conversation away from price breaks and towards measurable value. The EA used to be about scale; now CSP is about outcomes. Security, compliance, productivity and ensuring ROI.”

Luke Elston, Microsoft Practice Lead at CyberOne

What it Means for IT Leaders

• No more automatic discounts – Price rises are inevitable for larger EA customers.
• Value-based negotiations – Outcomes will matter more than commitments.
• CSP takes centre stage – Flexibility, tailored partner support and predictable billing make CSP the natural alternative.

Why CSP Makes Sense

Rethink Your Microsoft Strategy. With the Right Partner.

With EA discounts disappearing, the conversation is no longer about chasing price breaks. The real question for IT and business leaders is: how do you maximise the value of your Microsoft investment?

That means rethinking strategy across 3 areas:

1. Utilisation – Are you taking full advantage of the advanced features already built into Microsoft 365, Security and Azure?
2. Optimisation – Are you rightsizing licences, eliminating waste and aligning spend to business outcomes?
3. Innovation – Are you ready to keep pace with Microsoft’s rapid product development, from AI-driven productivity to advanced security?

This is where the Cloud Solution Provider (CSP) model, combined with the right partner, becomes transformational.

CSP isn’t just a different way to buy licences. With the right partner, it unlocks:

• Flexible Terms – Monthly, annual or multi-year subscriptions that scale with your business
• Tailored Support – Deployment, training, security and compliance delivered by expert partners
• Predictable Billing – Move away from complex three-year commitments
• Scalability – Add or reduce licences as your business changes

“CSP just makes more sense now. It gives organisations the flexibility to adjust licences as they grow or scale back, with predictable billing that removes surprises. But the real value comes from choosing a partner who helps you fully utilise your investment and unlock the ongoing innovations Microsoft is driving.”

Luke Elston, Microsoft Practice Lead at CyberOne

Why CyberOne?

While many CSPs only resell licences, CyberOne goes further. We combine our licensing expertise with deep Microsoft knowledge to ensure you achieve maximum value and measurable outcomes from your Microsoft investment.

• Microsoft Licensing Reviews – Optimise spend, eliminate waste and align licensing to business goals.
• Microsoft 365 Security Reviews & Copilot Readiness – Secure and prepare your environment for AI-driven productivity.
• Microsoft Secure Score Rapid Remediation – Guaranteed security posture improvements, achieving a 90+ Secure Score.
• Assure 365 Managed Services – 24x7 SOC monitoring, MDR, XDR, Identity, Endpoint and Data Security services delivered by Microsoft-certified experts.

Many customers see Microsoft’s removal of EA discounts as a challenge, but in reality it’s an opportunity. With CSP you gain far greater flexibility, transparency and cost control, ensuring you’re getting maximum value from your Microsoft investment. It's also important to mentioned that here at CyberOne, we don’t just provide the licences, we help you optimise, secure and future-proof your Microsoft estate, which is why so many organisations choose us as their trusted partner.

Lee Walker, Sales Director at CyberOne

Take The Next Step With CyberOne

Microsoft’s licensing changes remove EA’s financial incentives — but whatever your agreement type or organisation size, the recommendation is the same: rethink your Microsoft strategy with a focus on value, resilience and ROI.

At the same time, Microsoft is rapidly developing its solutions. Many organisations already have powerful capabilities within their Microsoft estate, but aren’t utilising them to their full potential.

How CyberOne Can Help You:

• Model the cost impact of Microsoft’s new licensing structure
• Optimise your current environment to eliminate waste and maximise value
• Build a roadmap that ensures you fully utilise Microsoft’s evolving capabilities to deliver measurable security, compliance and productivity gains.

Book a 1:1 Microsoft Licensing & Security Review to make sure you are fully prepared for your next renewal and maximise your return on Microsoft.