What's happening with Microsoft EAs?

On November the 12th Microsoft announced that a “small percentage” of Microsoft direct market cloud Enterprise Agreements won’t be eligible for renewal under the EA framework. So what does this mean? Certero Microsoft licensing specialist Joseph Lobo, MCP, CSAM, CAMP Lobo explains:

'This change is directed at small and midsize customers (less than 3,000 employees) and potentially opens an opportunity for Cloud Solution Provider partner program members (CSPs) to pick up new business where these customers don’t want to move to the alternative – the Microsoft Customer Agreement for enterprise (MCA-E).

Recently there have been rumors that Microsoft plans to sunset the EA in favor of the MCA. This announcement is by no means an immediate stop to the program but does confirm an intent to simplify the management of customers terms and pricing. Where the EA offers predictable pricing for three to five years the MCA offers transactional pricing with no defined term and with no organization-wide commitment. With an EA a structed set of agreements are required - these include an MBSA, the EA Agreement, EA Enrollment etc. With an MCA this is simplified with one 11-page document that’s digitally signed and can have terminology added to it when needed.

Whilst simplification and better customer support from partners was given as the reason for this change, its reasonable this move will be perceived as a means to more directly control how much customers are charged - as along with this news a series of price increases were announced.

Due to come into effect April 1st, 2025:

? 5% increase to all products with per user monthly billing plans for annual term subscriptions across channels (Buy Online, CSP, MCA-E). Customers may elect to change their billing plan from monthly to annual billing with upfront payment, priced 5% lower than the updated monthly billing option, at their renewal date.

? Annual billing pricing for Teams Phone annual term subscriptions will be updated:

o Teams Phone Standard: $10 per user, per month – up from $8

o Teams Phone Standard for Frontline Workers: $5 per user, per month – up from $4

Note that this increase is on top of any price increases due to Teams being split from the Office 365 bundle this year.

? Stating that due to Microsoft’s investment in the innovation Power BI is set in increase:

o Power BI Pro $14 per user per month – up from $10

o Power BI Premium Per User $24 per user per month – up from $20

Further details can be found here - Partner FAQ

Understandably this news is being seen as an opportunity to generate additional revenue under the guise of standardization and hasn’t been received well by partners who are now forced to have difficult conversations with their customers, who in turn see their license costs increase.'

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