Major Microsoft Licensing Program Changes Take Effect Today

Microsoft Enterprise Agreement discounts eliminated, Teams bundling returns, and grace periods ending in 2026

November 3, 2025 — Organizations using Microsoft products should be aware of several significant licensing changes that officially took effect on November 1, with additional updates coming in the months ahead. These modifications will impact pricing, product bundles, support options, and renewal processes for businesses of all sizes.

Microsoft Licensing Program Changes

EA Online Services Discounts Eliminated Starting Today

As of November 1, Microsoft eliminated automatic price level discounts (Levels A–D) for Online Services (Cloud Products) purchased under Enterprise Agreements (EA) and Microsoft Products and Services Agreement (MPSA).

All eligible customers will pay the list price, regardless of organization size or prior spend.

This means:

• No more volume-based pricing bands for Online Services like Microsoft 365, Dynamics 365, Azure, GitHub, and security/compliance/identity products.
• On-premises software pricing remains unchanged.
• Education and U.S. Government price lists are excluded.

Impact: Organizations should expect increases of up to 12–15 percent at renewal. While some very large managed customers may negotiate flexibility with their account teams, these will be exceptions rather than the rule. Microsoft is positioning licensing program change as part of a broader simplification strategy and a push toward partner-led sales through Cloud Solution Providers (CSP).

Action Steps:

• Review your current licensing agreements and renewal dates.
• Assess the budget impact and begin conversations with your trusted Microsoft partner and account team if you are a managed customer.
• Consider alternative licensing models, such as Cloud Solution Provider (CSP), which has more flexibility on discounts and support.

Teams Bundling Returns to Microsoft 365 and Office 365

Also, effective November 1, Microsoft is reintroducing bundled suites that include Microsoft Teams, following a period of regulatory scrutiny and settlement with the European Commission.

Key changes include:

• Customers can once again purchase or transition to these bundled suites. There were ways to circumvent these limitations by purchasing Microsoft 365 Business SKUs and upgrading them to licenses that included Teams, but this is official guidance from Microsoft. No more buying Teams Premium separately (which would be an additional $3 per user per month).
• Suites without Teams will be up to 44 percent cheaper, creating new opportunities for organizations using alternatives like Zoom or Slack. If you prefer these alternatives, this option without Teams will still be available.
• Teams remains available as a standalone product.

Impact: Organizations now have more flexibility to choose collaboration tools and can optimize costs by selecting the suite that best fits their needs without the additional cost of buying Teams separately.

Action Steps:

• Review your current collaboration platform strategy.
• Evaluate whether to transition to “no Teams” suites for cost savings or continue with bundled offerings.
• Plan for renewal and migration options as the new pricing takes effect.

Windows 10 Support Ended October 14, 2025

Windows 10 officially reached the end of support on October 14, 2025. Microsoft no longer provides free software updates, technical assistance, or security fixes. However, Extended Security Updates (ESUs) are available:

Businesses and organizations can purchase up to three years of ESUs, with costs doubling each year ($61/device for Year 1, $122 for Year 2, $244 for Year 3). These are cumulative, so the total for three years of Windows 10 ESUs will be $427.

Impact: ESUs provide only critical and important security patches — no new features or general support. Microsoft advises organizations to view ESUs as a temporary solution due to escalating costs and limited protection.

Action Steps:

• Inventory all Windows 10 devices and assess upgrade readiness.
• Enroll eligible devices in ESU if migration is not immediately possible.
• Develop a migration plan to Windows 11 or buy new devices that include Windows 11.
• Evaluate Entra ID and Intune for best practices around device management, auto-enrollment, and security.

Grace Periods Eliminated Next Spring

In a change announced on October 14, taking effect April 1, 2026, Microsoft will discontinue the free 30-day grace period for accessing services on non-renewed subscriptions.

Under the new policy:

• Non-renewed subscriptions must either cancel immediately or enter a paid Extended Service Term (EST)
• EST provides month-to-month access for up to 12 months at list price plus 3% administrative fee
• Services are disabled and data deleted after the EST period ends

Impact: This change may benefit organizations anticipating licensing reductions in the months following their anniversary date, as EST could be more economical than the typical 20 percent premium for month-to-month licensing.

Action Steps:

• Track subscription renewal dates closely.
• Plan renewals well in advance to avoid forced entry into paid EST or loss of service.
• Educate administrators and procurement teams about the new life cycle rules.

Contact Your Microsoft Partner for Support

Organizations navigating these changes should engage with their Microsoft partners to develop strategic plans and optimize their solutions.

For assistance with these licensing changes, contact Centric Consulting. Centric is a Microsoft Managed Partner — a distinction held by less than one percent of all Microsoft Partners — and can help you through all your licensing needs. Contact us