Microsoft just made a big announcement that will affect Online Services purchased through volume licensing programs. Starting November 1, 2025, Microsoft will move to further standardize its pricing approach for Online Services, adjusting prices to be the same for everyone.
This means that whether you're a large corporation benefiting from steep volume discounts or a mid-sized business with more limited purchasing power, the pricing for Microsoft’s Online Services will become uniform. In short, volume discounts for enterprise Online Services will be phased out under these licensing agreements.
What you need to know
In recent years, Microsoft has made strides toward simplifying and unifying its pricing across markets. This latest update marks a significant step in that direction.
Starting November 1, 2025, Microsoft will expand its set of products that are priced the same across enterprise customers regardless of deal size, region, or purchase volume. This change will apply to all Microsoft Online Services purchased under the following licensing agreements:
- Enterprise Agreement (EA)
- Including the Online Services Premium Agreement (OSPA), which is a licensing program unique to China
- Microsoft Products and Services Agreement (MPSA)
Under the new policy, Price Levels A through D which currently correspond to different levels of volume discounts will be eliminated for Online Services. Instead, all organizations purchasing Online Services under these agreements will pay the same list price.
Microsoft’s stated goal is to ensure pricing consistency, transparency, and global fairness, while aligning the enterprise pricing model with publicly visible pricing structures (such as the Microsoft website).
How this change can benefit your business
Microsoft is simplifying pricing for services like Microsoft 365 and Dynamics 365 under Enterprise Agreement (EA) and Microsoft Products and Services Agreement (MPSA), starting November 1, 2025.
This shift can open new advantages for your business:
- Simpler and more predictable pricing - With a single pricing level, forecasting and budgeting become easier, especially for future license expansions.
- Faster decision-making - No more complex discount tiers to navigate—helping your teams move quicker when adding new services or scaling cloud usage.
Who Is Affected?
This pricing update specifically applies to enterprise customers worldwide under EA and MPSA licensing agreements. However, it's important to understand who is not affected:
- Government organizations using government-specific licensing programs
- Educational institutions under education-focused agreements
- On-premises software purchases, such as traditional licenses for Windows Server or SQL Server, which are not impacted by this update
If you operate in the public sector or education space, your pricing models will remain unchanged for now. Likewise, any reliance your business still has on on-premises software will not see price changes due to this specific update.
What’s not changing
While this pricing overhaul is significant, there are some important constants:
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On-Premises Software Pricing:
Remains unchanged. The new pricing model only impacts Online Services (i.e., cloud-based services). The upcoming pricing update will only apply to certain Online Services, while existing services under current agreements will continue to follow their agreed pricing.
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Government and Education Pricing:
These sectors are explicitly excluded from this update.
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Cloud Solution Provider (CSP) Program:
Microsoft has not announced changes to pricing through CSP channels in this update. If you purchase Microsoft cloud services through CSPs like Zones, talk to your account team to understand whether and how this might affect you.
Get help navigating Microsoft’s new pricing changes
Change can be disruptive, but with the right planning and guidance, your business can adapt and even thrive under the new pricing structure.
At Zones, our team of Microsoft licensing experts is ready to help you understand the financial and operational impact of these changes. Here’s how we can support you:
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Review Your Renewals
We’ll help you identify all upcoming contract renewals and evaluate whether it’s financially advantageous to renew before the November 1 deadline. Early renewals may lock in your current pricing for another term.
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Plan Future Purchases
If you’re considering adding users, expanding your Microsoft 365 footprint, or purchasing new Dynamics 365 modules, we’ll help you strategize the timing and contract terms to minimize cost exposure.
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Understand the Budget Impact
We’ll analyze your current license usage, determine which services are actively being used, and identify potential areas to consolidate or optimize ensuring you only pay for what you truly need under the new model.
Act Now: Don’t Wait Until November
With just weeks left until Microsoft’s new pricing takes effect on November 1, this is the right moment to act. Taking proactive steps now will help you stay ahead, avoid last-minute surprises, and make smarter licensing decisions.
- Reach out to your Zones account team today
- Schedule a licensing review session
- Prepare a budget impact analysis
- Consider early renewal strategies
Our team can walk you through your current licensing landscape and help build a roadmap that aligns with your business goals, budget, and Microsoft’s new pricing structure.
Stay ahead of the change. Contact Zones today and take control of your Microsoft Online Services strategy before the November 1 deadline.
Zones
Zones : Oct 30, 2023 11:56:44 AM
