Microsoft Enterprise Agreement: What’s Changing November 1st

Effective 1 November 2025, Microsoft will retire volume-based pricing for its online services under the Enterprise Agreement (EA). 

This change will impact how businesses purchase cloud-based services like Microsoft 365, Office 365, Azure, and others – particularly for organisations that previously benefited from tiered pricing based on user volume. 

What’s Changing? 

For many years, Microsoft’s EA provided businesses with tiered pricing incentives – the more users or licenses you committed to, the less you paid per seat. This model supported organisations with 500+ users and made EAs a preferred option for medium to large enterprises. 

However, starting 1 November 2025, Microsoft will: 

• Remove all volume-based pricing discounts for online services under new or renewing EAs. 

• Apply standard pricing for all cloud services, regardless of the number of users or size of commitment. 

These changes are part of Microsoft’s global shift toward simplified pricing and licensing structures. 

What will be Affected? 

This change applies to Microsoft Online Services, including but not limited to: 

• Microsoft 365 

• Office 365 

• Microsoft Azure 

• Other cloud-based services covered under the Enterprise Agreement 

If you’re currently using any of these services under an EA and relying on volume-based discounts, you can expect a different pricing structure at your next renewal after 1 November 2025. 

In addition, the price adjustment will apply when existing EA customers purchase new Online Services (including licenses) that are not currently listed on their Customer Price Sheet. 

What’s Not Changing? 

Microsoft has confirmed that volume discounts for on-premises software will remain in place. So, if you’re licensing traditional desktop software or server products outside of the cloud model, the pricing tiers based on volume will continue to apply. 

In addition, global education and the U.S. government pricing lists are excluded from these changes and will remain unaffected. 

Who Is Impacted? 

• Organisations with large user bases (e.g., 500+ seats) currently benefiting from discounted rates on Microsoft 365 or Azure through EA. 

• IT and procurement teams managing renewals or negotiating new agreements post-1 November 2025. 

• Finance departments planning budgets for FY26 and beyond. 

What Should You Do? 

If you’re currently on an EA or considering one: 

• Review your EA renewal timeline. From 1 November 2025, the new pricing will apply at your next renewal or when you add new online services not already on your Customer Price Sheet. 

• Evaluate your licensing strategy. Understand how this change may impact your costs and explore whether other licensing models such as the Microsoft Customer Agreement (MCA) or working with a Cloud Solution Provider (CSP) may offer better flexibility or value. 

• Forecast budget implications. If your organisation relies on tiered pricing, you may need to reassess your cloud and licensing spend going forward. 

From EA to CSP 

Shifting away from an EA doesn’t just change the paperwork – it changes how you manage Microsoft services. A strong CSP partner delivers value that goes beyond pricing: 

• Value-added expertise. A CSP partner helps you navigate Microsoft’s complex licensing and ensures you’re only paying for what you need. 

• Flexible terms. Monthly, quarterly, or annual options replace the rigid three-year lock-in of an EA. 

• Enhanced support. Beyond procurement, an expert, direct (tier 1) CSP partner like Macquarie Cloud Services provides proactive guidance to optimise cost, strengthen security, and accelerate adoption. 

Making the Move: Transitioning to CSP isn’t all-or-nothing. Done right, it’s a structured process: 

• Communicate early to avoid renewal shocks. 

• Phase migrations to minimise disruption. 

• Tune your licensing mix to match real-world usage. 

Final Thoughts 

Microsoft’s move to eliminate volume-based pricing for online services reflects a broader trend toward streamlined, usage-based licensing. For organisations accustomed to EA volume discounts, this is a critical moment to re-evaluate procurement models, manage costs, and optimise cloud licensing for the future. 

Don’t wait for renewal shock. With Macquarie Cloud Services as your CSP, you get local Microsoft experts who will show you exactly where you’re exposed, how to right-size your licensing, and how to turn Microsoft’s shift into an advantage.  

If you want clarity on how these changes affect your business, now is the time to start the conversation. 

Why Macquarie Cloud Services 

Macquarie Cloud Services, part of ASX-listed Macquarie Technology Group, is Australia’s most recommended cloud service provider. We’ve built the nation’s leading Microsoft Azure Managed Services practice and are recognised as the #1 Microsoft Security specialist in market. 

We are also the only Microsoft partner in Australia to simultaneously hold: 

• Microsoft Azure Expert MSP accreditation – global proof of Azure capability 

• Microsoft Intelligent Security Association (MISA) membership – trusted for advanced security expertise 

• Microsoft EA Security Accelerate program membership – driving enterprise-scale security transformation 

These credentials, combined with our specialist Azure expertise and a proven record of reducing both cost and risk for our customers, make Macquarie Cloud Services a trusted partner for organisations transitioning from EA to CSP.

If you want clarity on how these changes affect your business, now is the time to start the conversation.
Talk to us today to explore your licensing options, optimise costs, and find the best path forward.