What Inviso CSP customers need to know
Microsoft is rolling out one of the biggest shifts to its Enterprise Agreement (EA) model in years. Starting November 1, 2025, the traditional volume-based discounts go away. That means many EA customers could see higher costs, and the negotiation game will look very different. Here’s the breakdown and why CSP is now a serious option to consider.
- Volume discounts are gone: Levels B-D for Online Services are being eliminated. Everyone pays Level A pricing (Microsoft.com list price).
- Scope: Applies to commercial and government EA customers worldwide (excluding U.S. Federal/State/Local Government and Education). On-premises software and Azure purchased via EA aren’t impacted.
- Products impacted: All Online Services such as Azure, Microsoft 365, Dynamics 365, Windows 365, GitHub, Security, Compliance, and Identity.
- Timing: Kicks in for any Online Services not already on your price sheet after Nov 1, 2025, or at renewal for agreements expiring on/after that date.
Why Microsoft is doing this
The move brings EA pricing closer to Azure’s pricing model. In Azure, discounts are based on consumption, commitment, and growth, rather than the size of the organization. Microsoft’s focus is on driving adoption of its strategic cloud stack (Azure, M365 E5, Copilot, Viva, Power Platform) and making pricing “simpler.” In practice, it means less automatic discounting and more negotiated value tied to cloud adoption.
For EA customers this means:
- Costs go up: Large orgs that used to get Level D pricing could see ~13% higher costs. A $30M annual EA could rise by nearly $4M per year.
- Negotiation shifts: Deep discounts now depend on adoption commitments. Microsoft reps and CSP partners hold the levers, not the EA discount tables.
- EA vs. CSP: With EA discounts flattened, CSP programs are suddenly more competitive. CSP partners can still bring flexibility, pricing options, and services that EA can’t.
Inviso is recommending the following for our clients:
- Check your agreements: Understand your exposure and model the budget impact.
- Move fast before Oct 31: Add Online Services to your Customer Price Sheet now if you want to lock in existing discounts.
- Put CSP on the table: Inviso CSP customers already benefit from flexibility and competitive pricing, plus the added value of bundled services. With EA changes, the missed opportunity of not having a CSP just got bigger.
- Engage early on renewals: Any chance of discounts will hinge on bigger Microsoft cloud commitments. Start conversations now.
