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Microsoft is ending decades of volume-based EA discounts. From November 1, 2025, all organisations will start at Level A pricing, forcing large enterprises to renegotiate or face multimillion-dollar cost increases.

Microsoft is shifting away from traditional Enterprise Agreements. This guide compares EA vs. MCA‑E, highlights risks, and outlines strategic actions for 2025 and beyond.

Microsoft’s strong Q3 FY25 results mask deeper challenges for customers—from mandatory CoPilot bundling and declining MACC discounts to a sales shift favoring AI, Security, and partner-led deals.

Microsoft has effectively created a situation where organisations feel almost captive to their offerings. Alternatives are diminishing, and suppliers have little incentive to offer compelling discounts unless there’s a strong business case or a significant alternative presented.

Regardless of your organisation’s size or location, now is the time to begin preparations for the end of the Microsoft Enterprise Agreement. It may not happen to your organisation in 2025, but considering current developments, it could happen sooner than expected.

Microsoft Enterprise Agreement Guide for IT and procurement. Includes true-up, renewal, and negotiation advice from independent experts with 20+ years of experience.

Learn the differences between Microsoft EA and CSP. Find out which licensing program is right for you with our comprehensive guide. Get expert advice.

Microsoft faces a trust crisis: from Pentagon letters of concern and China-based engineer revelations to EU regulatory settlements and failed AI trials, governments now demand sovereignty and transparency.

Microsoft’s Copilot strategy shifts enterprise economics: price list unification cuts discounts, ARPU becomes ARPA, and ROI remains uncertain as costs rise by 15–25% annually.

AI agents challenge Microsoft’s traditional per-user licensing. Per-transaction and consumption-based models may replace M365 licences, reshaping how enterprises pay for Office file operations.

Microsoft licensing projects face tight deadlines, vendor pressure, and multiple stakeholders. A dedicated PM ensures structure, scope control, and timely delivery—turning risk into savings.

Microsoft moves from licensing human users to licensing digital agents, with Entra Agent ID, Copilot orchestration, and embedded knowledge creating a new revenue model where ARPAA joins ARPU in EA negotiations.