Our downloadable guide will help you with your Microsoft Licensing comparison needs. We assist you through the complexities of knowing the differences between a Cloud Solution Provider (CSP), Enterprise Agreement, and Microsoft Customer Agreement.
Microsoft licensing is undoubtedly complex, but having a strategic partner walk you through the process helps you make the right decision. Our free downloadable Microsoft Licensing Comparison Guide will walk you through crucial details around EA, CSP, and MCA-E models with at-a-glance Microsoft licensing comparison charts for user minimums, term lengths, payment schedules, on-premise options, strategic advisory, tech support, and more.
Plus, for companies with less than 2,400 users, the Microsoft Enterprise Agreement license is being completely phased out, forcing those businesses to choose from either purchasing directly through Microsoft or purchasing and optimizing their licenses with a certified partner.
Why Choosing a Microsoft Licensing Model Is Difficult
Microsoft licensing is not one-size-fits-all, and with several different options to choose from, it feels overwhelming to weigh the pros and cons of each model. Plus, sometimes, Microsoft has limited or confusing communication about changing platform offerings and prices.
Complexity of Microsoft Licensing
With options like Enterprise Agreement (EA) slowly being phased out for some customers and many customers being unaware, choosing a long-term solution for your business is hard. Perhaps your internal IT team is already stretched thin and lacks specialized licensing expertise, which makes selecting a model even more difficult.
Plus, choosing an option depends heavily on how often your organization needs technical support. There are significant nuances from business to business when deciding on a licensing model.
Fear of Over-Licensing or Under-Licensing
Thirty percent of software licenses are never used, resulting in massive amounts of wasted money ($18 million, to be exact) on unused subscriptions. Overpaying for unused licenses wastes a limited IT budget, but under-licensing also leads to compliance risks and unexpected costs in the middle of contracts.
For example, perhaps you discover mid-contract that only half your employees truly need access to Microsoft 365, resulting in tens of thousands of wasted dollars.
Concern About Unexpected Costs
Starting this year, Microsoft will charge a five percent premium on all annual subscriptions with monthly billing plans. While some customers may elect to pay their annual bills upfront to avoid the upcharge, for all, uncertainty around Microsoft cost changes is a constant concern.
Exceeding cloud storage and consumption limits or needing to add new users can also quickly add unexpected costs to your budget. IT spending costs an average of 5.49 percent of annual revenue for most businesses, so major increases can quickly add up to hundreds of thousands of dollars.
Here are a few different areas where costs could quickly add up:
- Exceeding cloud storage limits, especially if you’re not performing regular data audits and hygiene upkeep
- Consumption spikes from seasonal or short-term traffic
- Adding additional users for projects or expanded teams or locations
- Lacking feature functionality for industry compliance, such as audit logging, multi-factor authentication, or single sign-on for secure identity management, might result in compliance fines or a failed audit
Lack of Clear Guidance
Perhaps you prefer a DIY approach to research or want expert guidance to maximize Microsoft investments. Strategic guidance on Microsoft’s roadmap and new features is one of the benefits of working with a CSP model, as Microsoft is notorious for a lack of transparency around its long-term strategy.
Instead of getting caught unaware or not capitalizing on new features, a strategic partner helps maximize innovation while staying within budget.
Anxiety About Technology Strategy Alignment
Perhaps your business wants to implement Power BI at scale or craft its own AI analytics products with Azure machine learning. Your Microsoft cloud and storage options lay the foundation for your long-term technology strategy.
Facing unexpected limitations around data storage, user limits, or integrations might restrict your future innovation. This could eventually lead to buyer’s remorse or simply weigh you down mentally as your team navigates to make the right decision.
Things to Keep In Mind
The right licensing model builds the foundation for long-term success for this major decision that impacts capability, compliance, and your overall technology strategy. It’s important to secure executive buy-in upfront.
Make sure leadership is equally invested in making the right decision, and as you’re deciding, aggregate different Microsoft licensing agreement options to present to them.
Here are a few things to keep in mind when evaluating your options.
Strategic Partnership Can Significantly Impact Technology Efficiency
Selecting a Microsoft licensing model is a crucial decision that impacts your business for years to come. It affects your long-term strategic roadmap when it comes to cloud migration, artificial intelligence implementation, cybersecurity, data storage, and any future business intelligence or automation.
For example, global AI adoption is expected to expand at a compounded annual growth rate of 35.9 percent from 2025 to 2030, and you don’t want your company left behind because your cloud provider limits you.
Working through a certified Microsoft CSP partner provides strategic recommendations, simplified payments, and hands-on support from a partner. It’s ideal for small to midsize businesses looking for a flexible, cost-effective technology solution with expert guidance.
Regular Licensing Assessment Is Crucial
Conducting a licensing audit is crucial for analyzing usage data, identifying wasted costs, double-checking compliance, and potentially adjusting your licensing plan. Regular audits with a certified Microsoft CSP partner help optimize costs, adjust licensing options as your business scales, and avoid potential fines or legal ramifications.
Here are a few different times to conduct a license audit:
- Once or twice a year
- Before or during budget planning
- During important mergers and acquisitions or executive leadership hires
- During expansion or growth opportunities
- At least six months before a contract is renewed
- Ahead of any major Microsoft licensing cost or model updates
Flexibility and Support Are as Important as Cost
While cost is king, it’s not worth underpaying and sacrificing features, functionality, scalability, support, storage, or innovation. Especially for dynamic, growing businesses, flexibility to scale a license up or down is just as important as cost. Also, depending on internal resources, support, and implementation might make or break your purchase.
For example, Microsoft’s Enterprise Agreement (EA) model offers limited adjustments only at the purchase anniversary. This long-term commitment with limited flexibility isn’t ideal for growing businesses that add new locations, employees, or technology frequently.
Download Our Free Microsoft Licensing Comparison Guide
Choosing the right Microsoft licensing option is a time-consuming, complex, and logistically complicated choice. Striking the right balance between features, current needs, future goals, and cost by EA, CSP, and MCA-E models is difficult and often best supported by an external third party.
Centric Consulting supports businesses considering Microsoft licensing options. We’ll start with an assessment to evaluate your current license mix against your needs to identify cost-saving opportunities. Plus, our team helps secure discounts and provides strategic recommendations and dedicated support throughout the entire process.
Download the guide for a detailed self-assessment and decision matrix.
