With the Enterprise Agreement (EA) program changing, a CSP partner can help you avoid loss of service and higher prices.
If your business buys Microsoft 365, Teams, or other cloud services through an Enterprise Agreement (EA), big changes are coming. Starting November 1, 2025, Microsoft will end the traditional tiered volume discounting for Online Services when Enterprise Agreements (EAs) renew. The result is that your costs could spike significantly, especially for medium to large businesses, and there is a risk that you will be left without licenses.
But there’s a way forward. Fusion Connect is already helping customers navigate this shift, offering smarter licensing strategies that preserve value and avoid unnecessary cost increases.
In this post, we’ll break down:
What’s changing and why it matters
How to know if your business is affected
What steps you must take now to avoid paying more
Change #1:Smaller customers' EA agreements will not be renewed
The change in Microsoft’s EA licensing model will affect smaller organizations differently from larger ones. Businesses with fewer than 2,400 licenses will lose their EA altogether. Microsoft is encouraging customers to work with CSPs (Cloud Solution Providers) like Fusion Connect for support in finding a new licensing program that best fits their needs.
Microsoft is encouraging customers to work with CSPs (Cloud Solution Providers) like Fusion Connect for support in finding a new licensing program that best fits their needs.
Change #2: No Volume Discounts for Commercial Customers
For the EA contracts that Microsoft does renew, Microsoft is eliminating all tiered volume discounts (Levels B–D) for Online Services, meaning every customer will pay Level A pricing—the public list price—regardless of organization size or seat count.
Enterprises that previously benefited from discounted B, C, or D pricing may see cost increases of up to 12%. Mid-market organizations may see increases of 6–9%.
Historically, Microsoft’s EA offered step-tiered (A–D) pricing for Online Services—the bigger your deployment, the better your price per user. These breaks resulted in significant savings for larger EA customers on services such as Microsoft 365, Office 365, and Enterprise Mobility + Security. However, starting November 1, 2025, all tier discounts will end at renewal or when purchasing new Online Services, affecting Enterprise Agreements (EA), Microsoft Products and Services Agreements (MPSA), and Online Services Premium Agreements (OSPA). To summarize:
All customers, regardless of size, will pay Level A pricing—the published price on Microsoft.com.
Tiered volume discounts (Levels B–D) for Online Services end at renewal.
The change affects Enterprise Agreements (EA), Microsoft Products and Services Agreements (MPSA), and Online Services Premium Agreements (OSPA).
There are NO changes to EA pricing for On-Premises licenses or for customers in government (GCC) or education (EES) sectors. U.S. Government and Education customers are excluded from this update.
Microsoft says the move toward standardized pricing is aimed at following the model used by competitors like Amazon Web Services (AWS) and Google Cloud, as well as increasing pricing transparency.
What’s at Stake:Budgeting Surprises and Strategic Decisions
For many businesses, the biggest risk is a sudden budget shock at renewal. If you’ve planned future spend based on C/D tier discounts, your cloud OPEX could jump overnight.
As a Tier1 CSP, Fusion Connect receives updates directly from Microsoft—and every time changes are announced, our team thoroughly investigates all aspects before recommending solutions. We’re committed to giving our customers stability, not just the latest options. Every licensing approach we offer is carefully evaluated to ensure it’s reliable and delivers the best overall experience for our clients.
—Terry Corder, Vice President of Product Management & Strategy at Fusion Connect.
If you’re under an EA with dozens or hundreds of seats, you may be faced with one of these scenarios:
A 200-seat organization benefiting from C-level pricing faces a per-license price hike at renewal, increasing annual software OPEX by thousands.
Businesses with fluctuating seat counts—growing, downsizing, or seasonal—lose the ability to “grow into” better tier discounts. The per-user rate is now set.
Organizations with bundled services (such as Azure Foundry or similar) may have licenses that are redundant or could be consolidated—reviewing your total mix is more important than ever.
Who’s Affected (And Who’s Not)
You ARE Affected If:
You’re a commercial business with an active Microsoft Enterprise Agreement (EA), Microsoft Products and Services Agreements (MPSA), and Online Services Premium Agreements (OSPA).
You license Online Services (Microsoft 365, Office 365, Dynamics 365, etc.) through one of these agreements.
Your renewal date falls after November 1, 2025.
You Are NOT Affected If:
You’re a government, education, or nonprofit EA customer (GCC, EES, etc.).
Your EA only covers on-premises software (server or desktop).
You purchase Microsoft cloud licensing through a CSP like Fusion Connect.
Action Plan:Take steps now to avoid paying more
Fusion Connect is ready to help you navigate these EA changes with confidence and clarity—so you can keep your business productive and your budgets under control.
Gather information
Check your current licensing agreement: If you’re under an EA, MPSA, or OSPA, the changes apply.
Review your renewal date: The new pricing kicks in at renewal or when purchasing new services not on your Customer Price Sheet.
Assess your tier/price level: If you’re classified as Level B, C, or D, you will lose your discount at renewal.
If you are already a Fusion Connect customer, contact your account manager: We will confirm your agreement type, seat count, and renewal timeline.
Begin your project
Start your transition plan early Schedule a review of your current agreement and upcoming renewal before expiration. Starting as long as six months before renewal gives us the most time to understand which services are affected and what your new pricing will look like. While we can respond in a few weeks if necessary, the more time we have to do a thorough investigation the more benefits we can uncover.
Forecast budget impact Use historical spend data to model your costs once tiered discounts end. Factor this into your IT budget and cloud strategy.
Assess and optimize your service mix Evaluate whether you’re using the right combination of Microsoft services and look for bundled options. Are you overpaying or underutilizing licenses? Do you have licenses that could be consolidated into services like Azure Foundry? Fusion Connect can help you identify these opportunities.
Explore alternatives and negotiate strategically The EA isn’t the only option now. Microsoft CSPs like Fusion Connect offer flexible, competitive licensing for all cloud services, usually with more agile support and monthly billing.
For organizations with fewer than 2,400 seats, CSP or Microsoft Customer Agreement may be recommended—ask if these models are better for your business.
Schedule a Fusion Connect licensing health check Our team will help you analyze your Microsoft environment, clarify your renewal dates, screen for unused licenses, and offer recommendations for consolidation and cost savings—before you’re forced into the new pricing. Contact our team now for a personalized Microsoft licensing review.
Communicate up Alert finance and leadership to possible changes now—preparation is key, and nobody likes surprise increases in IT costs.
Fusion Connect is here to help.
Fusion Connect can simplify your Microsoft licensing and keep your costs predictable. Contact our team now for a personalized Microsoft licensing review—ensure you’re ready for renewal and positioned for cost savings, compliance, and value.
Why Fusion Connect Customers Are Better Prepared
Fusion Connect is more than just a licensing reseller—we’re your partner in Microsoft cloud success. We offer:
Transparent, predictable billing No tier-based surprises. Flexible monthly or annual plans.
Hands-on, US-based support From Microsoft 365 migrations to Teams integration, you get actionable answers and a dedicated team.
Proactive licensing analysis We don’t just renew your licenses—we analyze your actual usage and identify unnecessary spend.
Expert EA alternatives Whether you’re ready to exit a rigid EA or want to supplement with CSP, Fusion Connect provides licensing assessments, end-to-end management, and direct account advocacy.
Single-vendor simplicity Bundle Microsoft, Teams, telephony, and network services with one bill, one point of contact.
With Fusion Connect, you’re never guessing what Microsoft will do next. We keep you informed, prepared, and in control. We help you navigate complexity, optimize your environment, and avoid unnecessary spend or compliance risks.
Common Questions from Our Customers
Q: What If My EA Doesn’t Renew Until After November 1, 2025?
A: You will keep your current pricing and discounts until your renewal date. After that, the new pricing model is enforced for Online Services.
Q: Will My On-Premises License Discount Change?
A: No. These changes do NOT impact volume licensing or discounting for on-premises software.
Q: Are Government/EES Customers Affected?
A: No, these customers are currently exempt from the Online Services pricing consistency update.
Q: What if I Buy Microsoft Licensing Through Fusion Connect Instead of an EA?
A: Fusion Connect customers can often mitigate surprise price increases—our CSP model offers flexible, transparent, and scalable Microsoft licensing, with monthly billing and no multi-year lock-in.