Microsoft 2025 Price Hikes: Volume Discounts Vanishing Explained

Introduction — A Pricing Reset in 2025

For years, Microsoft’s Enterprise Agreement (EA) licensing model rewarded bigger customers with lower prices. Organizations with thousands of users earned automatic volume discounts in their EA pricing tiers, making each additional license a bit cheaper than the last.

That long-standing model is now being upended. In 2025, Microsoft is resetting its pricing approach by eliminating traditional volume discounts and raising the baseline costs of its cloud subscriptions. Read our ultimate guide to Microsoft’s New Pricing & Regulatory Changes.

The 2025 price increase by Microsoft means the old expectation that “buying more equals paying less per unit” is disappearing, forcing buyers to rethink how they budget and negotiate for Microsoft licenses.

Microsoft’s messaging around this change highlights “pricing consistency” and “simplification.” From the vendor’s perspective, every customer paying the same list price for a cloud service sounds transparent and fair.

However, the reality for customers is that many will pay more for the same software, sometimes significantly more. CIOs, CFOs, IT procurement leads, and software asset managers heading into EA renewals in 2025 need to prepare for sticker shock.

The elimination of built-in volume discounts is reshaping the negotiating landscape, putting the onus on buyers to find new ways to secure savings and protect their IT budgets.

In short, Microsoft’s 2025 pricing reset is a wake-up call: enterprises must adjust their licensing strategies or risk unexpected cost overruns.

How Volume Discounts Used to Work

Under the traditional EA model, Microsoft offered tiered pricing levels (Level A through D) based on the volume of licenses or “seats” an organization committed to.

The more you buy, the lower your price per license.

Here’s a quick recap of how those volume tiers worked:

• Level A (small deployments): Typically 250–2,399 users. This tier had the highest price per license (the baseline “Level A” list price) with essentially no volume discount applied.
• Level B (mid-sized deployments): Roughly 2,400–5,999 users. Prices at Level B were a bit lower, providing around a 5–6% discount compared to Level A pricing.
• Level C (large deployments): Roughly 6,000–14,999 users. This tier enjoyed a larger discount, often on the order of ~8–10% off the Level A baseline.
• Level D (very large deployments): 15,000+ users. The biggest customers received the steepest automatic discount, typically about 10–12% lower prices than Level A.

These built-in discounts meant that large enterprises (Level D) could justify their huge license counts with significant per-unit savings, while mid-market companies strived to “level up” into the next tier as they grew.

Volume-based pricing was a core incentive in EA deals: if you committed to more Microsoft products or users, you were rewarded with better pricing.

For licensing managers and IT procurement teams, these tiers were a crucial tool to contain costs—especially when renewing agreements as an organization expanded its Microsoft footprint.

Read more about New Commerce Experience & Microsoft Customer Agreement (MCA): Impact on Enterprises in 2025

What’s Changing in 2025

Starting November 1, 2025, Microsoft is doing away with all tiered volume discounts for online services under Enterprise Agreements (as well as similar volume licensing programs like MPSA).

In plain terms, every organization will be charged the same Level A list price for subscriptions like Microsoft 365, Office 365, Dynamics 365, and other cloud services—regardless of whether you have 300 users or 30,000. The traditional EA Levels B, C, and D pricing distinctions will vanish.

Several key shifts define this new pricing logic:

• Flattened tier structure: The A–D price level system for online services is being flattened into a single tier. A small business and a global enterprise will both start from the same base price per license (the former Level A price).
• List price + strategic discounts: Microsoft will rely on standard list prices and individually negotiated “strategic” discounts rather than automatic volume-based discounts. Any price reduction off the list will now have to come from special agreements or promotions, not an entitlement simply for being a large customer.
• Little to no built-in differentiation: Under the new model, a Level D customer no longer enjoys a built-in 12% price advantage over a Level A customer. The playing field on paper is level, which practically means larger customers lose an edge they once had.
• New Commerce standardization: This change aligns EA pricing with Microsoft’s New Commerce Experience (NCE) and other purchasing channels. Microsoft has been harmonizing prices globally and across sales programs, so that buying through an EA, a Cloud Solution Provider (CSP), or even the web directly will yield similar pricing. Regional price disparities are also being reduced as part of global harmonization efforts.

The result of these changes is that many customers will experience a direct price hike at their next renewal. If you previously paid, say, $9.50 per user for a product under Level C pricing, and the Level A list price is $10.30, you can expect to pay that higher rate moving forward (unless you negotiate otherwise).

The magnitude of increase varies: large enterprises could see double-digit percentage upticks in per-user costs, while mid-sized firms might see a more modest rise. Either way, the cushion of automatic EA discounts is gone.

To visualize the shift, here’s a comparison of the old versus new pricing logic:

In effect, Microsoft is standardizing commercial cloud pricing to a single level.

For organizations that grew accustomed to declining unit costs as they expanded their Microsoft deployments, this is a major change. It shifts leverage back to Microsoft: any discounts beyond the public Level A price will now come out of negotiations, not automatically from volume entitlements.

Learn more about regulatory changes, EU Regulations and Cloud Licensing: What’s Changing for Microsoft Customers

Why Microsoft Is Making These Changes

Why would Microsoft upset its largest customers by removing a long-standing perk like volume discounts?

There are several strategic reasons behind the 2025 pricing changes:

• Cloud-first, subscription-first push: Microsoft wants all customers on its modern subscription platforms (Microsoft 365, Azure, Dynamics cloud services, etc.) and newer contract vehicles like the Microsoft Customer Agreement (MCA) or CSP. By eliminating EA volume perks, Microsoft nudges smaller enterprises off the EA program (into CSP or MCA). It makes EAs less differentiated, encouraging a uniform cloud commerce model for all.
• Simplification of licensing structures: Over the decades, Microsoft’s licensing had become extremely complex. The company has been trying to streamline offerings and pricing. A single price for online services across the board simplifies quoting and reduces confusion. Microsoft positions this as “greater transparency and consistency” in pricing — one price list to rule them all, just like how Azure has long been priced consistently by consumption rather than user count.
• Margin protection and revenue growth: From a financial perspective, removing automatic discounts boosts Microsoft’s margins on larger deals immediately. In an inflationary environment and with global currency fluctuations, a uniform list price helps Microsoft protect revenue. They can adjust the master price list as needed (and have done periodic global price harmonization adjustments) without the complication of tiered discounts cutting into those increases. Also, Microsoft has massive investments in areas like AI (e.g. building out cloud infrastructure for AI services and Copilot features) – raising the average revenue per user (ARPU) helps fund those initiatives and protect margins.
• Reduced buyer leverage: Under the old model, big customers knew they’d automatically get a better price by virtue of their size, and could leverage that in negotiations. Microsoft is effectively taking that built-in leverage away. Now, any discount is “by exception.” This change forces customers to negotiate on Microsoft’s terms (focusing on value-add or strategic concessions) rather than simply citing volume. Microsoft gains more control: they can grant or withhold discounts based on strategic factors (like a customer’s willingness to adopt new products or commit to bigger spend) instead of a blanket policy that favored all big buyers.

In Microsoft’s ideal outcome, customers simply accept the new standard pricing and the company enjoys higher per-user revenue.

The official rationale emphasizes consistency and alignment with how other cloud providers operate (for example, neither AWS nor Google Workspace gives you a cheaper unit price solely for having more users; they use uniform pricing or consumption-based models).

However, unlike purely usage-based cloud services, Microsoft’s per-user licensing had long baked in economies of scale for customers — and those are now being pulled back. Buyers should view this change with healthy skepticism: it’s as much about bolstering Microsoft’s bottom line as it is about “simplifying” the licensing model.

Who Gets Hit the Hardest

All commercial organizations using Microsoft’s cloud subscriptions under an EA will feel the effects of these changes eventually, but the pain will be distributed unevenly.

Here’s how different types of customers are impacted:

• Small and mid-sized businesses (SMBs) – Level A customers: Paradoxically, the smallest EA customers (under ~2,400 users) won’t see a price per license increase because they were already paying Level A list prices. However, they face a different challenge: Microsoft is raising the minimum seat requirements for EAs, and in many cases will not renew EAs for customers below the 2,400-user threshold. These organizations will be encouraged to purchase through CSP partners or other programs. The upside is that they avoid multi-year lock-in and might find more flexible terms; the downside is losing the perks of an EA (such as spread payments or certain support benefits) and potentially scrambling to transition licensing mid-stream.
• Mid-market enterprises – former Level B/C customers: Mid-sized organizations that previously qualified for Level B or C pricing will see noticeable cost increases. If you had, say, 3,000 seats at Level B, your renewal would be around 5–6% more expensive for the same licenses. A company with 10,000 seats (Level C) might see on the order of 8–10% higher costs. These companies are “losing the step up” that they earned by growing larger. It can be particularly frustrating for those who planned to expand their Microsoft usage, expecting better pricing — now, additional volume yields no automatic price break. Mid-market firms will need to watch their budgets carefully and negotiate for concessions to avoid these increases eroding their IT funding.
• Large enterprises – former Level D customers: The global enterprises with 15,000, 50,000, or 100,000+ user counts are hit the hardest in sheer dollar terms. Losing a ~12% discount across tens of thousands of seats can inflate annual Microsoft spend by millions. These organizations often had the best EA deals, sometimes layering additional negotiated discounts on top of the Level D prices. Now, not only do they lose the built-in discount, but Microsoft may also scrutinize any extra discounts more closely. Large enterprises, however, also have the most leverage and importance to Microsoft. They are likely to push back and demand custom pricing to offset the change — and some may threaten to delay projects or consider rival solutions to gain negotiating power. In summary, the biggest customers face a significant budget hit but also have the means to negotiate bespoke arrangements if they prepare well.

Checklist — Are You at Risk of Overpaying in 2025?

Not every organization will experience the same level of impact from Microsoft’s pricing changes.

The following checklist can help you assess if you’re particularly at risk of higher costs or unpleasant surprises in 2025. If you answer “yes” to several of these questions, it’s a warning sign that you need to take action in your renewal strategy:

• ✓ Renewal after Nov 1, 2025, based on Level A pricing? (Is your EA renewal coming up after the effective date, meaning your online services will be repriced at Level A list rates? Plan for that baseline increase.)
• ✓ Expected volume growth not rewarded in the new model? (Were you counting on hitting a higher discount tier by adding users or services? In 2025, extra volume alone won’t earn a cheaper rate.)
• ✓ Heavy reliance on premium E5 or bundle suites? (Are you subscribing to many Microsoft 365 E5 licenses or similar top-tier bundles? These high-cost licenses will strain budgets even more without volume discounts, so unused features or over-licensing become extra costly.)
• ✓ Azure commit or cloud spend sized for 2022–2024 pricing? (Did you plan a large Azure consumption commitment or cloud budget under the assumption of older pricing? If so, the removal of discounts and any list price increases could cause your forecasted spend to overshoot your budget or commitment.)
• ✓ No written price protection clauses in your contract? (Does your current agreement lack guaranteed price caps or renewal price protections? Without those, you’re fully exposed to the new pricing at renewal – Microsoft can charge the full updated list price with no constraints.)

If several of these apply, there’s a real risk of overpaying or facing budget shock.

The good news is that recognizing these red flags now gives you time to respond (more on strategies and planning below). Don’t wait until the renewal is upon you – start mitigating these risks well in advance.

Negotiation Strategies in the New Environment

With automatic volume deals off the table, customers must adopt a more proactive and creative approach when renewing their Microsoft agreements.

Here are concrete tactics to help enterprise buyers secure better terms in Microsoft contract negotiations under the new rules:

• Negotiate custom discounts and incentives: Just because Microsoft isn’t giving blanket volume discounts doesn’t mean you should settle for full list price. Push for account-specific discounts based on your importance as a customer. This could include loyalty discounts, competitive price matching, or incentives if you’re willing to be an early adopter of certain Microsoft products. Make Microsoft justify their pricing – if you’re a large account or a long-time customer, ask, “What can you do for us to ease this transition?” You may not receive the old 10% automatically, but you might be able to negotiate 5% or more by showing a willingness to consider new product bundles or by simply pushing back hard.
• Leverage your Azure and cloud growth: If your organization is planning major Azure cloud projects or an overall increase in cloud consumption, use that as a bargaining chip. Azure revenue is a huge priority for Microsoft. You can trade commitment for concessions: for example, commit to a certain Azure spend or agree to roll out Microsoft 365 Copilot or security add-ons, and in return ask for better pricing on your core Microsoft 365 or Office 365 licenses. Essentially, pivot the conversation to total account value. Microsoft might be more willing to give a discount if they see they’ll make it back through your growing Azure usage or adoption of a new service.
• Evaluate CSP and MCA quotes against EA: Don’t assume the EA is always the cheapest route, especially now. Ask a Cloud Solution Provider partner for a quote on the same licenses, and look at Microsoft’s MCA (direct purchase) pricing for comparison. The list prices should be the same across these channels, but CSPs sometimes have promotional rates or can offer you a slice of their own margin as a discount. At the very least, comparing CSP vs. EA vs. MCA costs will give you a benchmark and an alternative to bring up in negotiations (“We could move to a monthly CSP subscription model at no additional cost, unless you can offer a better deal under the EA”). Microsoft does not want to lose EA customers to other purchasing channels, so showing that you’re willing to shop around can increase your leverage.
• Insist on price caps and flexible terms: In your EA renewal, explicitly negotiate price protections for future years and any additional licenses you might add. For instance, seek a clause that caps how much Microsoft can raise prices year-over-year (or at least cap any list price increases for products you’re locking in). Also push for “consistent discount” terms – if you do secure, say, a 5% discount on your current licenses, insist that any new licenses you add mid-term receive the same discount off the then-current rates. Additionally, negotiate the ability to swap products or reduce quantities at certain intervals (like annually) without penalty, especially if you’re unsure about future needs. Microsoft might not volunteer these, but if you don’t ask, you definitely won’t get them.
• Escalate and involve Microsoft executives: Frontline sales reps might be limited in the concessions they can offer, especially now that official pricing is flat. Don’t hesitate to escalate your negotiation to higher-ups within Microsoft if the deal on the table isn’t acceptable. Large enterprises often bring in their CIO, CFO, or other executives to speak with Microsoft’s senior sales management, emphasizing the strategic relationship and the need for a fair outcome. Sometimes an executive-level discussion can unlock special concessions (extra discount percentages, extended payment terms, or credits for future services) that wouldn’t be offered otherwise. Use the fact that you’re unhappy with the changes as leverage to get something back – Microsoft does value keeping its biggest customers satisfied, especially if there’s a risk of you delaying projects or exploring competitors.

Overall, the guiding principle is to be prepared, be informed, and be willing to challenge proposals.

Microsoft’s sales team will be ready to defend the new status quo, so come armed with data (e.g., your cost increase analysis, competitive alternatives, usage reports) and don’t be afraid to say “This doesn’t work for us.” The days of easy, automatic discounts are over, but savvy negotiators can still extract value through persistence and creativity.

Alternatives to EA for Cost Control

With the traditional EA benefits diminishing, it’s a perfect time to consider alternative licensing avenues.

Depending on your organization’s size and needs, non-EA options could yield more flexibility or even cost savings:

• Cloud Solution Provider (CSP) program: Under CSP, you purchase licenses through a Microsoft partner on a subscription basis. Competition among partners can work in your favor – you might find a CSP willing to offer a better rate (for example, by bundling in additional services or using promotional discounts). CSP agreements also allow monthly adjustments in license count, so you can scale up or down and only pay for what you need each month. This avoids the “true-up surprise” at the end of the year that often comes with an EA. Many organizations under 2,400 seats will end up in CSP by necessity after 2025; even larger enterprises can use CSP for certain segments or new projects to stay agile. Additionally, CSP partners often provide value-added support and managed services, which can help offset the loss of Microsoft’s direct support that comes with an EA.
• Microsoft Customer Agreement (MCA): The MCA is Microsoft’s direct purchasing agreement (an evergreen contract) that has been replacing old programs like the MPSA. It’s particularly common for Azure and other online services. MCA typically doesn’t offer volume discounts either (similar to the new EA reality), but it allows direct, self-service purchasing with Microsoft and can be customized for large commitments. For example, an enterprise might sign an MCA for Azure consumption with negotiated discounts or credits. In some cases, Microsoft could offer special pricing or benefits under an MCA if you’re willing to move off an EA. The MCA route can also simplify things if you don’t need the full complexity of an EA and want to avoid a multi-year commitment – you pay for what you use and can add/remove services as needed without a big formal renewal cycle.
• Hybrid licensing approach: You don’t necessarily have to choose one path. Some savvy companies are opting for a hybrid strategy: keep an EA for core products that benefit from enterprise-wide coverage or require Software Assurance, and move other workloads or incremental needs to CSP or other agreements. For instance, you might maintain a 3-year EA for foundational services (Windows, Office, core CALs) while acquiring additional Power Platform, Dynamics 365, or specialized licenses via CSP on a month-to-month basis. Or use an EA for your steady-state employees, but handle contractors and seasonal workers through CSP licenses that can be dropped when not needed. This blended approach can recreate some leverage by ensuring Microsoft has to compete to keep all of your business. It also prevents locking every single component into one agreement, giving you more flexibility to optimize costs over time.

The key is to evaluate what mix of programs yields the best economics and control for your situation. With volume discounts gone, the traditional advantage of “EA vs. CSP pricing” has largely disappeared — so it’s wise to shop around.

Microsoft may claim an EA is simpler for large customers, but if that simplicity comes at a premium, alternatives become more attractive.

Even if you remain with an EA, having a viable Plan B (like quotes from CSPs or a readiness to move some licenses to an MCA) gives you bargaining power.

Common Buyer Mistakes to Avoid

As organizations adapt to Microsoft’s new pricing landscape, there are some pitfalls to watch out for. Avoid these common mistakes to save yourself headaches and dollars:

• Taking Microsoft’s word that “discounts are gone for everyone”: Microsoft reps might imply that, since volume discounts ended, no one is getting a better deal, and you shouldn’t bother asking. Do not accept this at face value. While the standard programmatic discounts are gone, Microsoft still has the flexibility to offer unique discounts or rebates to important customers. If you don’t push, you’ll pay list — but rest assured, some other customers will quietly get concessions. Always negotiate as if there’s something on the table.
• Overcommitting to bundles without ROI analysis: In response to the changes, Microsoft will eagerly push their priciest bundles (like Microsoft 365 E5, or new add-ons such as the AI-based “Copilot” services) as to where you should invest. Don’t jump into purchasing the highest-tier suites for everyone just because of a fear of missing out or to chase a potential discount. Evaluate the return on investment: are you actually using all the components of a bundle like E5, or could you do with E3 plus selective add-ons? Over-buying an expensive bundle that isn’t fully utilized is a fast way to squander your budget, especially now that every license is at full list price.
• Ignoring alternative providers or competitive leverage: This is not the time to put all your eggs in Microsoft’s basket without question. Even if you don’t plan to switch off Microsoft 365 or Azure, you should be benchmarking against competitors. Know what equivalent services from Google, Amazon, or others might cost, and what incentives they offer. In some cases, regulatory or technical requirements might allow you to move a workload to another platform. At a minimum, having credible comparisons (or even running a proof-of-concept with a rival) can be used as a negotiation lever with Microsoft. Don’t let Microsoft assume you’ll never consider alternatives – that assumption will make them less inclined to offer concessions.
• Starting renewal discussions too late: Perhaps the most preventable mistake is failing to give yourself enough runway. In the new environment, any savings will come from careful planning and iterative negotiation, which takes time. If you engage Microsoft or your reseller only a few weeks before your EA expiration, you’ve lost the opportunity to methodically improve the deal. Start the renewal process 6–12 months in advance (or even earlier for very large agreements), so you can thoroughly analyze your needs, explore options, and make Microsoft sweat a little. Rushed renewals overwhelmingly favor the vendor, not you.

By sidestepping these errors, you’ll be in a stronger position to manage the transition without unnecessary costs or surprises. It’s a learning curve for everyone, but being an informed and proactive customer tilts the balance back in your favor.

12-Month Action Plan for 2025 Renewals

To effectively navigate the 2025 pricing changes, you need a game plan well ahead of your EA renewal date.

Here’s a timeline-based action plan that CIOs, CFOs, and ITAM teams can follow to stay on top of the renewal and come out with a better deal:

• 12–9 months before renewal: Benchmark and budget. Begin by benchmarking your current pricing versus what it would cost under the new Level A model. Calculate the projected increase in spend once tiered discounts end, so you have a clear dollar figure to address. Start socializing this internally – leadership needs to be aware that a potential 6–12% cost increase is on the horizon. This is also the time to review your existing contract for any price protection clauses or renewal options. Lock in budget assumptions and identify any gaps between what you’ve budgeted and what you might actually have to pay after the price hikes.
• 9–6 months before renewal: Engage Microsoft and partners early. Initiate informal talks with your Microsoft account team or licensing partner about the upcoming renewal. Share your concerns about the pricing changes and ask how Microsoft plans to “make it right” for you as a customer. (You’re not committing to anything yet — you’re gathering information.) Also, begin developing various renewal scenarios. For example, what if you drop certain products, or what if you move a portion of users to CSP? Getting Microsoft’s initial feedback on these scenarios 6+ months out gives you insight into their flexibility (or lack thereof) and surfaces issues early.
• 6–3 months before renewal: Evaluate alternatives and negotiate. At this stage, ramp up your negotiation efforts. Solicit quotes from one or more CSPs for an equivalent set of licenses (even if you intend to stay with EA, you want that data for leverage). If your organization has significant Azure spend, talk with Microsoft about an Azure consumption commitment under an MCA or separate deal – see if that could come with discounts or credits that indirectly offset your EA costs. Internally, finalize decisions on what products and services you truly need in the next term (e.g., dropping underused licenses or choosing smaller bundles for some users). With a clear target in mind, formally negotiate with Microsoft. Counter their initial renewal quote with your demands: maybe it’s a discount percentage, maybe it’s an extended price lock on certain products, maybe it’s more flexible terms for adding or removing users. This is also the window to escalate if needed (as discussed earlier) – you want any big asks to reach Microsoft’s higher-ups with enough lead time for them to respond.
• 3–0 months before renewal: Finalize and document the deal. In the last few months, wrap up negotiations and get all agreements in writing. Ensure that the final paperwork (whether it’s an EA amendment, a new contract, or a CSP agreement) clearly reflects any special pricing, discounts, or protections you secured. Don’t rely on verbal assurances. For example, if Microsoft agrees to cap your year-2 price increase at 5%, ensure that this is explicitly written into the contract. Double-check that your understanding of the deal matches the documents — now is the time to catch any discrepancies or vague language. Finally, have a rollout plan in place if you are changing licensing programs (such as moving from an EA to CSP) to minimize any disruption in service. By the renewal date, all internal stakeholders (IT, procurement, finance) should be aligned on the outcome and prepared to execute on the new agreement.

By following this timeline, you avoid the last-minute crunch and create multiple points of leverage.

An early start gives you the luxury of walking away from a bad offer and the possibility of coming back later, or the ability to involve alternative partners in the conversation.

It transforms the renewal from a dreaded deadline into a managed project with deliverables and checkpoints.

FAQs

What is EA Level A pricing in 2025?
“Level A” pricing refers to Microsoft’s baseline list price for licenses in an Enterprise Agreement. In the past, Level A was the price paid by the smallest EA customers (roughly 250–2,399 users) with no volume discount.

As of 2025, EA Level A pricing has effectively become the price that all commercial customers pay under an EA for online services, because Microsoft eliminated the cheaper Level B–D tiers. In other words, Level A is now the standard rate for Microsoft 365, Office 365, Dynamics 365, etc., regardless of your organization’s size. If you hear that something is priced at “Level A,” it means it’s at the full list price published by Microsoft.

Are all volume discounts gone?
For online services in commercial agreements, yes – the automatic volume-based discounts are gone. Microsoft will no longer reduce your price per unit just because you’re buying more seats.

However, this doesn’t mean you cannot get any discount at all. It means there’s no predefined volume pricing program. Discounts have become entirely discretionary. Enterprises can still negotiate custom discounts or receive special pricing in certain cases (for example, as part of a promotion, or if they agree to adopt a new product or commit to a larger multi-year deal), but nothing is guaranteed. Essentially, the easy, built-in discounts (Levels B–D) have been removed, and any price reduction must be separately negotiated and justified.

How do CSP and MCA compare in unit cost?
In terms of raw unit cost, CSP (Cloud Solution Provider) and MCA (Microsoft Customer Agreement) use the same Microsoft list prices that the EA now does. So a Microsoft 365 license should have a similar base price across EA, CSP, or direct purchase via MCA.

However, there are some differences in practice. CSP resellers might offer slight discounts or added incentives on top of Microsoft’s list (especially if they bundle in support or other services), which can make the effective cost a bit lower. MCA is more of a direct “pay as you go” model — generally you pay list price, though for very large cloud consumption (like Azure) you might negotiate better rates or credits under an MCA. In short, if you’re a smaller or mid-sized customer, you’ll likely pay roughly the same per license under CSP or MCA as you would under an EA at Level A pricing. The real differences are in flexibility and terms: CSP allows monthly adjustments and brings a partner’s assistance, whereas an EA/MCA locks pricing annually but might offer price locks for multiple years. It’s wise to compare not just the sticker price, but also the total value and support you get in each channel.

Can enterprises still get special deals?
Yes, absolutely – but you’ll have to fight for them. While Microsoft has removed standardized volume deals, it still provides special pricing or incentives on a case-by-case basis for strategic or high-value customers. Enterprises might secure extra discounts or credits if, for example, they commit to a very large spend, adopt new high-profile services (like Microsoft 365 E5 upgrades or the latest AI offerings), or bring competitive bids to the table.

Microsoft can offer incentives such as discounted pricing above a certain volume, one-time credits, extended payment terms, or funding for deployment services, but none of these are automatic now. It depends on your negotiation leverage, how essential your account is to Microsoft’s sales targets, and sometimes timing (for instance, Microsoft might be more flexible at the end of its fiscal quarter/year to close a deal). The key is to remember that “if you don’t ask, you don’t get.” There’s no checkbox for a volume discount anymore – you have to articulate why Microsoft should give you something extra, and be prepared to walk away or explore alternatives if they won’t.

Should buyers consider leaving the EA program?
It’s a valid question in light of these changes. Many organizations are re-evaluating the value of an EA versus other options.

Suppose your company has fewer than 2,400 users. In that case, Microsoft is likely going to steer you away from an EA at renewal anyway, meaning you’ll need to transition to CSP or another program. If you’re larger than that, the EA still offers some advantages: consolidated billing, one agreement covering many products, the ability to true-up annually instead of constantly adjusting licenses, and certain benefits like training credits or support options.

However, the loss of automatic discounts removes one of the EA’s biggest perks. You should consider whether a CSP or MCA might serve you better, especially if your user count or product mix fluctuates, or if you value month-to-month flexibility over a multi-year lock-in. Some enterprises are taking a hybrid approach (as discussed above) — keeping an EA for core stability while moving other pieces to more flexible models. In summary, don’t abandon the EA without analysis, but do compare the costs and benefits. If staying in an EA at full price turns out to be significantly more expensive or less convenient for your needs, be ready to make a switch. Microsoft’s changes are a signal that it’s time to at least weigh the alternatives.

Five Expert Recommendations

To wrap up, here are five expert recommendations for any organization facing Microsoft’s 2025 pricing shifts:

1. Benchmark your pricing under both old and new models: Do the homework to calculate how much more you’ll be paying once volume discounts vanish. Use that insight to prioritize cost-saving measures and to justify pushing back on Microsoft’s proposals. Knowing your “percentage increase” arms you with a clear goal (e.g., “We need to claw back 8% in value somehow”).
2. Demand written concessions to replace lost discounts: Don’t accept a plain-vanilla renewal quote that simply charges Level A prices. Negotiate for something in return for your loyalty and scale – whether it’s an upfront discount, credits for future services, or a cap on price increases over the term. And crucially, get every concession in writing within the contract.
3. Use cloud growth and new services as leverage: If you plan to expand your Azure usage or deploy Microsoft’s latest offerings (like their AI or security add-ons), use that as a bargaining chip. Let Microsoft know that your increased investment is conditional on getting a sustainable deal. This ties your request to Microsoft’s own goals, which can increase your chances of getting a break.
4. Rebalance and optimize your license mix: Don’t just renew “as-is.” Re-evaluate which licenses and purchasing channels each part of your organization should use. Maybe some user groups move to CSP for flexibility, or perhaps you downgrade certain users from E5 to E3 if they don’t need the extra features. Optimizing license types and quantities can offset some of the price increase. Find the right balance between EA, CSP, and other agreements to maximize value and minimize waste.
5. Start renewal preparations 12 months in advance: The era of quick, last-minute EA renewals is over if you want a good deal. Begin planning at least a year ahead: assemble a cross-functional team (IT, finance, procurement), set your objectives, and engage with Microsoft early. A long runway gives you time to iterate on offers, seek competitive quotes, and escalate issues. It also signals to Microsoft that you are serious about getting a fair outcome and are willing to put in the effort, which means they’ll have to put in effort too.

By following these recommendations, CIOs and licensing managers can transform what appears to be a daunting price hike into a manageable strategic project. Microsoft’s 2025 pricing changes do create challenges, but with the right approach, you can still control your costs and drive a hard bargain — ensuring that your organization pays a fair price and remains in control of its IT investments.

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