What Microsoft’s 2025 pricing update means for your Enterprise Agreement
Cloudinvestment • December 18, 2025 • Written by: Venetia Rook • Read time: 4 min
As of 1st November 2025, Microsoft introduced a new, simplified approach to Online Services pricing, affecting customers on Enterprise Agreements (EAs).
Previously, EAs made use of price levels that reduced costs to customers with larger user numbers. The change to a single, standardised model means that the variable price levels B, C and D will no longer apply to Online Services, instead, all licences will be priced at Level A, aligned directly with the Microsoft.com list price.
Whilst we welcome clearer, transparent licensing models, many organisations will no longer receive the volume-based discounts they are used to, making this the ideal time to re‑evaluate the best route for your Microsoft licensing strategy before your next agreement renewal.
Why this matters for your renewal
By creating a single baseline price, Microsoft is making it easier to understand and predict the costs of Online Services without navigating a complex discount framework.
However, organisations who have previously benefited from the highest tier discounts are the ones most likely to see noticeable changes at renewal. Projections suggest that many organisations could experience increases in the region of 6% - 12%[1] though the exact figure will vary depending on factors such as the size of your user base and which workloads you choose.
Without the benefit of scale-based pricing, organisations will need to be more precise when it comes to evaluating usage, securing value from their licences, and deciding which commercial route delivers the greatest long-term fit for their business.
Exploring your options
For some organisations, staying with an EA will remain the most logical choice, particularly where long commitments and predictable terms provide stability. But for others, the Cloud Solutions Provider (CSP) model will become an increasingly attractive route. With the baseline cost aligned to EA pricing, CSP offers the flexibility of monthly licence adjustment, simplified billing, and the ability to scale services up or down in a way that more closely reflects the realities of modern business.
Cost is not the only factor, as organisations have the opportunity to assess how their licensing model underpins wider business priorities. Whether that’s achieving budget predictability, supporting digital transformation or enabling more agile workforce planning, your licensing approach has become something to actively form a strategy for.
How Methods can support the transition
At Methods, we can ensure you are prepared for the shift, not just in helping you renew licences, but providing clarity, context and practical guidance that turns licensing into a strategic decision.
Many organisations are not making full use of the licences they already own, so our first step is providing visibility, using our SCOUT Health Check, to uncover unused or misallocated seats, highlight inefficiencies, and identify areas where spend can be brought back under control.
From there, we can help you explore alternative approaches, whether that means refining the way your existing EA is managed or planning a possible transition into CSP, following our structured roadmaps for EA-to-CSP migration.
These roadmaps cover every stage of the process, from tenant review and licence consolidation through to migration planning and governance. And we don’t stop at licensing. As specialists in cloud technologies, we also support broader initiatives around security, compliance and adoption, ensuring that you unlock the maximum value from your Microsoft investment.
Moving forward
Microsoft’s recent update to Online Services pricing introduces greater consistency but also refocuses priorities for organisations. Previously, value was found in negotiating discounts based on user numbers. Now, the emphasis is on:
- Accurate planning
- Effective licence management
- Selecting the most suitable commercial model at renewal
With these changes underway, it is essential to evaluate their potential impact on your organisation. By reviewing your current Enterprise Agreement and analysing how your Microsoft services are currently utilised, you are empowered to develop a forward-looking strategy that ensures you retain control.
At Methods, we are dedicated to supporting you throughout this transition. Leveraging our licensing expertise, practical insight and ongoing assistance, we will work collaboratively with your team to help you make informed decisions. Whether that involves renewing your Enterprise Agreement under optimal terms or exploring the enhanced flexibility offered by the Cloud Solutions Provider (CSP) model.
If you’d like a clearer picture of how this change could affect your next renewal, and the options available to you, speak to us today or download our EA to CSP brochure.
[1] Disclaimer: Figures suggesting 6–12% increases are external industry estimates. They are intended to provide context only and may not reflect the specific impact on your organisation.