Microsoft is changing how Enterprise Agreement (EA) pricing works for its online services, including Dynamics 365 and Microsoft 365.
From 1st November 2025, the volume-based discount structure that has rewarded larger organisations with better pricing will be replaced with standardised rates across all agreement levels.
The End of Volume-Based Pricing
Enterprise Agreement customers enjoyed a tiered discount system based on the total user count for many years. Organisations with more licenses received better discounts:
| Volume Price Level | User Count | Approximate Discount |
|---|---|---|
| A | 500 - 2,399 | ~3% |
| B | 2,400 - 5,999 | ~6% |
| C | 6000 - 14,999 | ~9% |
| D | 15,000+ | ~12% |
Starting in November 2025, Microsoft will remove these volume discounts for its online services. As a result, EA customers will pay standardised rates that match list pricing at Microsoft.com.
When Changes Take Effect
This change begins on 1st November 2025, but the impact on your organisation depends on your agreement renewal cycle.
The new pricing will apply at your next EA renewal or when you purchase new online services not already covered by your existing agreement.
For example, if your current EA doesn’t expire until 2026 or beyond, you’ll have time to assess your options and plan accordingly. However, you’ll pay standardised pricing for new online services added after 1st November that aren’t already on your customer price sheet.
What Products Are Affected?
EA volume discounts are being removed on online services, including Microsoft 365, Dynamics 365, Azure services, and Microsoft Copilot purchased through Enterprise Agreements and Microsoft Products and Services Agreements (MPSA).
On-premises software pricing remains unchanged, and these updates don’t affect education customers.
Budget Impact for EA Customers
Organisations currently receiving higher volume discounts will face cost increases at renewal.
The impact will vary depending on your current user counts, as organisations with the largest discounts will experience the most significant cost changes.
CSP Model as an Alternative
With Microsoft’s move to standardised EA pricing, the Cloud Solution Provider (CSP) model becomes increasingly attractive.
CSP pricing now matches the new EA structure while providing additional benefits:
- Flexible billing options: Monthly or annual terms instead of rigid three-year commitments.
- No minimum user requirements: Suitable for organisations of any size.
- Partner-led support: Access to specialist guidance and ongoing consultancy.
- Immediate access to innovation: Quickly deploy new services like Microsoft Copilot.
The CSP model allows organisations to work with certified Microsoft partners who provide licensing management, technical support, and strategic guidance alongside the core Microsoft services.
Recommended Planning Steps
Review your current position: Calculate your potential exposure by understanding your existing discount level and online services spend. This assessment will help you model the financial impact of the changes.
Licence Optimisation: Review user profiles and usage patterns to mitigate price increases. Cut out unused licences and identify if some individuals can be moved to a lower-priced licensing tier.
Explore your options: Don’t assume EA renewal is your only path. Compare EA renewal costs with CSP alternatives available through Microsoft partners and consider if a hybrid approach might work better for your organisation.
Plan your timing: If your agreement doesn’t expire soon, use this window to develop a transition strategy that aligns with your business objectives.
Looking Ahead
Microsoft’s move to remove EA volume discounts reflects broader industry trends toward simplified pricing models.
While some organisations will face higher costs, more flexible licensing options create new opportunities. The key is understanding your choices and acting strategically.
The focus will shift from securing volume discounts to maximising value from Microsoft technology. Successful outcomes will come from effective deployment and user adoption that utilises the full capabilities of Dynamics 365, Copilot and other products.
Whether you’re evaluating renewal options, planning budget forecasts, considering CSP alternatives, or reviewing your Microsoft licensing strategy, ServerSys can help you assess the impact and explore your options. Contact us to arrange a consultation.
Learn more: Microsoft Online Services: Pricing Consistency Update
