What You Need to Know: Microsoft’s EA Changes
Microsoft has changed the pricing model for cloud services purchased via Enterprise Agreements/Enterprise Subscription Agreements. Organisations with a Microsoft Enterprise Agreement (EA) may face a substantial price increase once their current agreement renews and may wish to explore alternate options.
Effective 1 November 2025, Microsoft introduced a major change to how pricing works for its cloud services under Enterprise Agreements (EAs).
- Previously: Companies got discounts based on size, organisations (with Price Levels A–D) paid less for services like Microsoft 365, Dynamics 365 and Azure.
- From 1 November 2025: All EA pricing levels are the same list price for all online services under EA, regardless of size. That means no more volume-based discounts.
What’s not affected:
- On-premises software pricing remains unchanged.
- Education sector EAs.
This means that organisations with an EA may face a substantial price increase once their current agreement renews.
The alternative for online subscriptions is the Cloud Solution Provider (CSP) model.
EA vs CSP: Which Model Fits Your Business?
There are some differences between EA and CSP that organisations should be aware of:
| Feature | Enterprise Agreement (EA) | Cloud Solution Provider (CSP) |
| Commitment | 3-year term with annual true-up | Month-to-month or annual commitment term |
| Pricing | Committed for 3 years | Committed either monthly or annually with some 3-year options available |
| Minimum Seats | 500+ (commercial) | No minimum |
| Billing | Annual upfront | Monthly or annual billing |
| Flexibility | Increase anytime, decrease* only at anniversary (*subscription products only) | Increase anytime, decrease only at anniversary |
Why Partner with Cyclone?
We’re one of just six Microsoft LSPs that can transact EA’s in New Zealand, and a leading CSP provider trusted by commercial, government and education customers nationwide.
- Experts in EA and CSP: As a Microsoft Licensing Solution Provider, Cyclone can assist you with both EA and CSP licensing. We will guide you through the changes, evaluate renewal timing and model cost scenarios across both options.
- Unbiased advice: Because we sell through all Microsoft licensing models, we recommend what’s best for your business.
- Proactive planning: We will help you assess impacts and plan.
- End-to-end service: From license optimisation and compliance to subscription consolidation and ongoing support, Cyclone makes licensing simple.
- Nationwide Presence: Our team of licensing specialists and advisors based throughout New Zealand will work with you to ensure your requirements are met in the most cost-efficient and beneficial manner to your organisation.
To connect with one of our Microsoft licensing specialists please contact us on software@cyclone.co.nz, or complete the form below.
Get In Touch
To connect with one of our Microsoft licensing specialists please contact us on software@cyclone.co.nz, or complete the form below.