Following Microsoft Enterprise Agreement pricing changes in November 2025, many businesses in Australia are now evaluating how they buy and manage their software assets.
Microsoft announced changes to its Enterprise Agreement pricing structure late last year, saying it’s the ‘next step in standardising its pricing approach for online services’. This shift indicates a move from rigid and long-term licensing towards a more flexible, partner-led CSP model that better fits with forward-thinking businesses.
This article explores what’s changed with Microsoft’s Enterprise Agreement, what that means for organisations with existing EAs up for renewal, and how Microsoft’s CSP model could provide more value for your organisation.
Microsoft has removed volume-based discounts for EA online services.
EA pricing is now standardised, regardless of how many licences an enterprise has.
Many organisations are now reassessing their EA at renewal and considering the more flexible, partner-led Cloud Solution Provider (CSP) model.
Traditionally, EA customers benefited from a volume-based pricing structure, where discounts were given as an organisation’s licence count increased. This model suited large and well-established enterprises with annual billing structures, as they could leverage their scale for cost savings on online services.
In November, Microsoft announced it would set a single, consistent price across Price Levels A-D for all online services under the Enterprise Agreement. This standardised pricing change means online services can no longer be purchased at discounts based on how many licences are purchased by an organisation.
Without these discounts, organisations with large licensing demands may face higher costs. And, with a locked-in commitment of a fixed number of licences over a three- or five-year period, organisations may be overspending if the size of their business decreases or doesn’t scale up as planned.
*It’s worth noting that on-premises software pricing isn’t impacted, and government and education price lists are excluded.
Many businesses on EA's are now reassessing their licensing strategy and considering more flexible, cost-effective options, such as the partner-led CSP model.
Microsoft’s CSP model offers a flexible approach for businesses to buy and manage Microsoft cloud services, including Azure, Microsoft 365, and Dynamics 365.
In this model, organisations subscribe to the Microsoft services they need on a monthly, annual, or multi-year basis, with the flexibility to add or remove seats monthly and scale services easily.
CSP is a partner-led model, which means companies work directly with certified partners like Truis, rather than transacting directly through Microsoft . This equates to more dedicated and ongoing support with a trusted partner that delivers strategic guidance, technical support, and licence management. We also help those looking to transition from an EA to CSP.
Key benefits of CSP:
Greater control to add or remove seats as needed.
Competitive pricing and flexible billing options to help match cash flow.
Strategic and proactive year-round guidance and support from a certified partner.
Fast access to Microsoft engineers with 24/7 Microsoft Premier Support at no extra cost.
| EA | CSP | |
| Contract length | Usually three- or five-year terms. | Monthly, annual or multi-year. |
| Billing structure | Annual payments. | Monthly or annual billing. |
| Flexibility | Low, changes are usually made annually. | High, organisations can add or remove licences monthly. |
| Best fit |
Large, stable organisations with predictable needs. | Growing or changing organisations needing flexibility. |
Why organisations should consider moving from EA to CSP
With standard pricing structures, EA customers no longer enjoy the benefits of volume-based discounts. In some situations, this means organisations will face higher costs.
With the CSP model, businesses get access to dedicated partner-led relationships that proactively manage their environment and subscriptions, and offer strategic solutions with a focus on business impact and revenue.
The partner-led CSP model delivers hands-on support and provides greater flexibility, allowing organisations to scale resources, adjust subscriptions, and adapt quickly as business priorities evolve.
With Truis, companies get a single, dedicated point of contact to adopt, migrate, optimise and manage Microsoft services.
Our expert team offers:
If you’re looking to see how this would work for your business, we’ll review your current setup, identify opportunities, and guide you on what Microsoft’s CSP model could do for you. Get in touch today.
No, Microsoft isn’t eliminating Enterprise Agreements, but it is reducing their relevance for cloud services.
EA is a traditional, long-term enterprise contract with limited flexibility. CSP is a partner-led model that offers flexible subscriptions, billing options, and ongoing support. Microsoft Customer Agreement (MCA) is a direct agreement with Microsoft for cloud services and does not typically involve partners.
Many organisations prefer CSP for flexibility and hands-on guidance and year-round support.
At renewal, organisations can: