As your Microsoft Enterprise Agreement renewal date looms, it is crucial to understand major changes to licensing models, including the CSP model, and how they will affect you.
Beginning in 2025, Microsoft will cease Enterprise Agreement renewals for customers with less than 2400 users. Whether this disruption is on your horizon or you’re just looking for ways to optimize your licensing mix, let’s explore whether transitioning from a Microsoft Enterprise Agreement (EA) renewal to a Cloud Solution Provider (CSP) can simplify your licensing arrangement and how to go about doing it.
Organizations are constantly under pressure to optimize their IT spending, and despite the robust features of many Microsoft solutions, their licensing systems can be confusing and hard to manage. In some cases, organizations now have to pursue a completely different licensing model, especially if they’re currently using the Microsoft Enterprise Agreement (EA) system. Microsoft has already started to phase out its EA program, meaning many businesses won’t be able to renew their EA agreements beginning in 2025.
With renewal dates looming, organizations are forced to consider other licensing options. This is where the Direct Cloud Service Provider (CSP) model comes into play. It can keep you connected to the Microsoft services you need and also offers some advantages over the EA system.
Understanding the Changes to Microsoft Enterprise Agreement and License Models
The tech giant is getting rid of some of its licensing models, making the Microsoft Enterprise agreement renewal to CSP more attractive for some organizations. One driver behind this move is a shift in Microsoft’s business model — away from perpetual or term-based licenses and toward subscription, cloud-based services.
While this simplifies the process of subscribing to Microsoft’s services, the erasure of the Enterprise Agreement Microsoft license may have a significant effect on:
- Organizations that have already budgeted for their next EA license renewal. For example, they may have already set aside the cash to purchase another three-year license.
- Companies that prefer purchasing a term-based license because it eliminates the need to remember to renew every year.
It seems the changes will be permanent, and Microsoft may have no plans to return to a system in which a company can choose to renew EA license permissions every three or so years.
At the same time, Microsoft is also introducing its EA – MCA-E program. This gives organizations the option of purchasing their license directly from Microsoft. Except, unlike EA licenses, EA – MCA-E licenses don’t have fixed agreement terms. But there are some significant drawbacks to opting for Microsoft enterprise agreement renewal via the EA – MCA-E program.
The Disadvantages of the EA – MCA-E Program
Even though the EA – MCA-E program may give some organizations more flexibility when it comes to the length of time that they use the software for, it also may result in more work and significant operational issues.
For instance, unlike the CSP model, the program doesn’t allow you to scale your license as your organization grows easily. This means you have to assess both your current and future usage accurately. This can be particularly difficult for organizations that may consider a merger or acquisition in the future and need to be able to add new users quickly and easily.
The same holds true for those with aggressive growth goals. Choosing the wrong option in the EA – MCA-E program could hamstring your digital infrastructure if you grow faster than predicted.
Another drawback is the lack of support. With a CSP, you get the support of your CSP provider, but with EA – MCA-E, you don’t. This means you may have to hire external support staff or train internal staff to the point where they have the ability to support your team on their own.
Purchasing a license without support also exposes you to the risk of not getting the most out of your implementation and licensing issues. With a CSP, you get help with managing and scaling your licenses and guidance regarding getting the most out of your implementation. The EA – MCA-E program doesn’t offer these kinds of services.
For these reasons, it’s important for you to be proactive and stay informed about your options. Whether your EA license is expiring or you want more control over your cloud licensing mix, you’ll want to consider using the CSP model.
Enter the Cloud Solution Provider (CSP) Model
The CSP Model is a powerful option for Microsoft licensing, especially when compared to the EA and MCA-E arrangements. When you partner with a Direct CSP, you gain access to several advantages that can boost your licensing strategy and the general efficiency of your IT system.
Value-Added Services and Expertise
Direct CSP partners come with a ton of experience regarding the business and technical sides of Microsoft cloud licensing.
For example, a CSP partner can identify opportunities to scale your solutions, adjusting licensing to meet your business needs in real time. They can also determine which licenses to scale up and which may be better to keep the same based on your projected usage.
A CSP also understands the features that come with each licensing option. By combining this knowledge with insights into your business goals, your CSP provider can choose an option that balances necessary features with cost savings.
Saving Money with a Pay-as-You-Go Model
You can also save significant funds by taking advantage of the pay-as-you-go model a CSP provider gives you access to. Instead of committing to a three-year contract, as you would with the traditional EA system, you can simply pay by the month, quarter, or year. If you only need a license for a relatively short period of time, this could result in huge savings.
Enhanced Support
In addition to the licensing flexibility, many opt to go with a CSP because of the support they offer. Ensuring you get the most out of your cloud-based product can get complicated. However, a Direct CSP understands how to ensure you take full advantage of each solution’s potential, particularly in the context of a cloud infrastructure.
For instance, suppose you have licenses for both Azure and 365. Your Direct CSP can guide you through the process of integrating Azure’s deep security services with 365. For example, you can use a single sign-on (SSO) system to enable employees to access both Azure and 365 apps.
Or you can ask your CSP to guide you on how to store data from 365 apps in Azure, which paves the way for performing analytics and enabling a business intelligence system.
Given the clear advantages of the CSP model, how can you get the most out of this approach by moving from an EA to a CSP? Let’s dive in.
How to Make the Move from an EA to a CSP
Moving from an EA to a CSP is fairly straightforward. Here’s how to do it, step by step:
1. Choose the right model.
The model you choose will depend on your business needs now and future goals. For instance, if you plan on continuing to use cloud-powered services across your organization, going with a Direct CSP that offers cloud strategy support may be the best move.
2. Choose the right partner.
You want a CSP with a good reputation and a solid track record of expertise with Microsoft products. Ask for references, read customer reviews, and examine the CSP’s industry certifications to determine if they’re up to par.
3. Set up for a smooth transition.
To make your transition as seamless as possible, you should:
- Prepare early by letting employees know about the move and how it may affect their workflows, if at all.
- Minimize disruptions by transitioning in phases, if necessary. This could include having IT transition departments one at a time and/or focusing on individual apps one by one.
- Take control of your licensing mix. Your CSP partner can tell you exactly how to optimize your licensing mix. Relying on their expertise is the most straightforward way to control costs and make sure your licensing supports your business goals.
Once you have your transition from EA to CSP in place, you’re on your way to unlocking the full potential of your Microsoft cloud investments.
Unleash the Power of CSP Licensing
Evaluating your Microsoft licensing model, particularly in the context of the 2025 EA changes, can result in a more flexible, scalable, and cost-effective suite of Microsoft cloud tools. Going with the right CSP partner gives you value-added services and years of experience with each product.
In the long term, you can save considerable cash and eliminate many of the headaches that often come with complex license management. In addition, you gain a partner dedicated to helping you maximize the benefits of your Microsoft products.
Want more great content like this? Check out our blog.
Is your organization facing EA renewal in 2025? Our experts are ready to discuss the evolving Microsoft licensing landscape and explore how a strategic CSP partner can help you navigate these changes successfully. Let’s Talk
