Updated October 2026 to reflect Microsoft’s Online Services pricing change that took effect November 1, 2025.
For years, a Microsoft Enterprise Agreement (EA) came with a clear trade. You committed to three years and organization-wide licensing. In return, your size earned lower prices on Microsoft cloud subscriptions.
That second half of the trade changed on November 1, 2025. Microsoft now applies one consistent price to Online Services (its term for cloud subscriptions such as Microsoft 365) across EA Price Levels A through D, and that price matches what Microsoft.com publishes. If you renew in 2026, your volume may no longer buy you a better rate.
So before you sign another three years, ask what the EA still gives you. For some organizations the answer is a lot. For organizations that run mostly on Microsoft cloud services, it may be less than you assume, and Cloud Solution Provider (CSP) licensing deserves a side-by-side comparison.
The short answer
An EA can still be the right choice, especially if you rely on Software Assurance, on-premises licensing or negotiated terms that carry real value. But “we’re large enough to get better pricing” no longer justifies renewing by default.
If your Microsoft environment is mostly cloud, compare three things before you renew:
- What the EA will cost at renewal pricing
- What an equivalent CSP setup costs
- What each option gives you beyond the licenses
CSP is not automatically cheaper, and it is not unlimited month-to-month flexibility. Depending on the partner, it can offer more adaptability, visibility and support than an EA.
What changed in Microsoft’s EA pricing
On August 12, 2025, Microsoft announced that it would extend its single-price model, already used for services like Azure, to all Online Services bought through Enterprise Agreements and the Microsoft Products and Services Agreement (MPSA). It started November 1, 2025, and it applies in two situations:
- At your next agreement renewal
- When you buy an Online Service that is not yet on your Customer Price Sheet (the price list tied to your agreement)
It does not change on-premises software pricing, and Microsoft excludes U.S. Government and worldwide Education price lists.
Pricing already on your Customer Price Sheet generally holds until one of those triggers applies. That makes your current EA price the wrong number to test against. The right comparison is what your Online Services will cost at renewal versus an equivalent CSP setup built on what you actually use. Start it early enough to act on the result.
EA vs. CSP in 2026: How They Compare
If Online Services pricing starts from the same place, the decision shifts to commitment, flexibility, support and what the partner adds.
| What to compare | Enterprise Agreement | Cloud Solution Provider (CSP) |
|---|---|---|
| Eligibility | Commercial organizations with at least 500 users or devices | Organizations buying Microsoft cloud services through an authorized partner |
| Commitment | Minimum three-year agreement, with three annual payments available | Set per subscription. Terms vary by product and can be monthly, annual or multi-year |
| Coverage | Cloud services, on-premises software and Software Assurance under one agreement | Microsoft cloud services. Confirm how any on-premises or Software Assurance rights would be handled |
| Changing quantities | Add products and users during the term and settle up in the annual true-up | Depends on each subscription’s term, billing frequency and cancellation rules |
| Billing and support | Through Microsoft or a licensing partner | Through your CSP partner, who typically handles billing, provisioning and support |
| Partner value | Depends on your licensing provider | Varies widely by partner: tools, reporting, optimization and specialist access |
The true-up is the yearly reconciliation of the products, users and devices you added during the term. Software Assurance is the EA benefit that includes new software versions and upgrade rights.
When an EA still makes sense
Renewing can be the right call. An EA tends to fit when you:
- Have significant on-premises Microsoft licensing
- Depend on Software Assurance
- Have negotiated commercial terms that carry value beyond price levels
- Have stable, predictable requirements and a mature internal licensing team
- Face technical or contractual dependencies that would complicate a move
Write down the specific EA benefits you use today. If you can’t list them, the renewal needs a closer look.
When CSP deserves a serious look
CSP is worth pricing out when:
- Your Microsoft estate is mostly cloud
- Volume pricing was the main practical reason you chose an EA
- You want more flexibility in how subscriptions are added, adjusted and renewed
- Your IT team wants self-service control over licensing
- Azure, security and Copilot need specialist support
- Your current provider adds little beyond the invoice
How flexible is CSP, really?
CSP can be more adaptable than an EA, but it is not an unlimited month-to-month arrangement. What you can change, and when, depends on each subscription’s product, term, billing frequency, renewal date and Microsoft’s cancellation rules. Monthly billing on an annual commitment is still an annual commitment, and shorter terms or monthly billing can cost more than annual prepayment.
Before you move, get answers to these:
- What is the commitment term on each subscription?
- When can quantities go down, and what cancellation window applies?
- Can subscription renewal dates be aligned?
- How will temporary, seasonal and contractor users be handled?
- Who watches renewal deadlines, and what happens if we miss a change window?
With the right governance and tooling, these are manageable. Clarity (360 Visibility’s self-service customer portal), for example, automatically co-terminates new purchases with your existing subscriptions, which helps avoid the scattered renewal dates that make CSP harder to run.
Is CSP cheaper than an EA?
Not automatically. Losing the Price Level A through D differences for Online Services does not mean every CSP quote beats every EA renewal. A fair comparison counts renewal pricing, negotiated terms, products and quantities, subscription commitments, on-premises software, Software Assurance, support and partner services, internal admin time, migration effort, Azure and Copilot plans, and expected headcount changes.
What has changed is narrower. Volume pricing used to help justify the EA’s rigidity. It no longer does that by default, so the decision rests on total value rather than company size.
Right-size your licenses before you compare
An EA vs. CSP comparison only works with the right quantities. If you pay for unused licenses, duplicate products or higher license levels than roles require, you will compare inflated numbers under both models. Start by reviewing:
- Assigned versus unassigned licenses
- Inactive users, departed employees and duplicate accounts
- Overlapping bundles and users on higher license levels than their role needs
- Planned hires, departures and seasonal or contractor needs
Our Microsoft license audit starts here, by finding unused, unassigned and over-assigned licenses.
Then look past Microsoft 365 seat counts. A renewal review should also cover:
- Azure consumption: spend trends, reservations and who can see cost data. Our Azure cost optimization work covers this.
- Identity and security: whether admin accounts and users are protected appropriately. A Microsoft 365 security assessment shows where the gaps are.
- Devices: which are managed, protected and active
- Copilot adoption: whether the Copilot licenses you pay for are being used. If you are still deciding where to deploy, start with a Copilot readiness assessment.
- Renewal and commitment dates: what can change, and when
- Support: what you get today, what you need, and who handles Microsoft escalations under each model
Choose the CSP partner, not just the program
Moving to CSP does not improve your Microsoft experience on its own. A basic CSP gives you licenses, invoices and a support queue. Ask each partner you consider:
- Can we see subscription terms and renewal dates clearly?
- Can we see which licenses are assigned and used, and which sit idle?
- Can our team make supported licensing changes without a ticket?
- Can we see Azure consumption in a format we can use?
- Can we see Copilot adoption and key identity and device information?
- Who helps us interpret the data, and who acts when something needs attention?
- Which tools are included, and which services cost extra?
If most answers are vague, you would be changing how you buy Microsoft licenses without changing what you get.
Where Clarity fits
Clarity is 360 Visibility’s CSP portal and Microsoft command center. Depending on the services you connect, it gives your team visibility into:
- Licensing, subscriptions, assignment and utilization
- Renewal timelines
- Azure consumption
- Microsoft Secure Score and identity posture
- Devices across Entra ID, Intune and Defender
- Copilot adoption
It also lets your team complete supported licensing actions on its own instead of waiting in a provider’s queue.
A portal shows you information. It does not replace judgment. When Clarity surfaces a licensing, Azure, identity, device or adoption issue, 360 Visibility’s Microsoft specialists help your team assess it and decide what to do. Your IT team handles everyday administration without carrying every Microsoft problem alone.
360 Visibility is a Microsoft Cloud Solution Provider holding Microsoft Solutions Partner designations in Security, Cloud & AI Platforms, and AI Business Solutions.
Treat Clarity as an example of what a CSP partner can provide beyond the license, and hold every candidate partner to the same list.
If your current CSP already delivers this, stay
Changing partners for the sake of change adds risk. Ask your current provider whether your team can make supported licensing changes without a ticket, get license and utilization data quickly, see Azure consumption without a manual reporting exercise, spot underused licenses and upcoming renewals, and reach specialists who help you act. If the answers are yes and the price is fair, the case for moving is thin. If they are not, an upcoming renewal is a natural time to compare alternatives.
Do you need to move everything at once?
No. A review should come before any migration, and it should say so if your EA is still the best option. Depending on your agreement dates, on-premises dependencies, Software Assurance, Azure arrangements, contractual obligations and internal readiness, you might:
- Move eligible Online Services to CSP at renewal
- Keep specific EA components and move selected workloads
- Phase the move as agreement terms expire
- Validate a new CSP relationship before expanding it
Whether we can support you while you keep your EA depends on your requirements, technical access and agreed scope. We will tell you plainly.
When to start your renewal review
Microsoft’s EA guidance puts the first true-up conversation with your account team 120 days before your agreement anniversary. The true-up order is due between 60 and 30 days before it. An EA vs. CSP decision needs more runway than that, because it involves a license inventory, utilization analysis, commercial modeling, dependency review, internal approvals, partner evaluation and transition planning. Start before the 120-day mark. If the review begins after those dates, you will probably renew by default because there is no time left to compare.
What a renewal review should cover
- Current-state inventory. Products, quantities, agreement components, subscription terms and renewal dates.
- Utilization. Assigned, inactive and unused licenses.
- Dependencies. On-premises software, Software Assurance, support obligations and any rights a change could affect.
- Requirements. Expected workforce changes, Azure plans, security needs, Copilot adoption and upcoming Microsoft initiatives.
- Commercial comparison. EA, CSP and direct purchasing, priced on your right-sized requirements and renewal pricing.
- Partner value and recommendation. Support, self-service, visibility, optimization and specialist access, ending in a call to renew the EA, move to CSP, phase the move or run a mixed model.
The result should be a documented decision that both your finance and IT leaders can sign off on.
The bottom line
The EA trade made sense because scale earned better Online Services pricing. Since November 1, 2025, Microsoft applies one price across Price Levels A through D, so that benefit no longer shows up automatically at renewal.
An EA still fits where Software Assurance, on-premises coverage or negotiated terms deliver real value. If your organization runs mostly on Microsoft cloud services, compare CSP before you commit again, and compare the partner as carefully as the price. The Microsoft products are the same across partners. The visibility, control and support around them are not.
Know what you’re committing to before you renew
A complimentary Microsoft license audit identifies unused, unassigned and over-assigned licenses, plus redundant third-party services. It gives you real numbers to compare EA and CSP options before you sign another term. Tell us your renewal date when you book.
Want to see how a CSP portal supports renewals and optimization first? See Clarity Demo.