Microsoft Customer Agreement for Enterprise (MCA-E)

Microsoft has introduced the Microsoft Customer Agreement for Enterprise (MCA-E) as a more flexible and modern contract model, offered alongside the traditional Enterprise Agreement (EA) and considered a potential successor to (part of) the EAs. The MCA-E is part of the broader Microsoft Customer Agreement (MCA), a digital and streamlined contract that allows organizations to purchase Microsoft cloud products and services directly. At BeSharp Experts, we help you understand the nuances of this model and make strategic choices.

What is the Microsoft Customer Agreement?

The Microsoft Customer Agreement is a simplified, digital, and “evergreen” (non-expiring) contract that allows customers to purchase Microsoft products and services directly. What makes the contract unique is its modular design: customers only see the terms relevant to the services they are purchasing, making the contract more user-friendly. Additionally, the MCA focuses on direct relationships with Microsoft, without the involvement of partners, making it a key part of Microsoft’s direct purchasing program.

In this blog, we focus on the MCA-E and the role it plays within the landscape of direct purchasing models.

EA vs. MCA-E: Key differences

A key difference between the Enterprise Agreement (EA) and the MCA-E is the contract structure. The EA has a fixed term of three years, while the MCA-E is more flexible due to its evergreen nature, without a set end date. This provides more adaptability but also means that benefits such as long-term price guarantees and customization options are absent. Prices for services like Azure can vary monthly, making budgeting more difficult.

Under the EA, license management is often handled by (Microsoft) partners, while the MCA-E connects customers directly with Microsoft. This provides more control but also places the responsibility for compliance and administration on the customer. Additionally, the MCA-E does not support License and Software Assurance (L/SA), meaning customers must switch to subscription models for products like Windows Server and SQL Server.

The MCA-E is invoiced in USD, which exposes customers to exchange rate fluctuations, and does not offer access to certain SKU options or traditional price levels (A, B, C, D). This can lead to higher costs for customers who would otherwise benefit from lower price levels in the EA.

Moreover, Microsoft Teams is not always included in certain Microsoft 365 suites, depending on regional and regulatory changes, adding extra complexity to an organization’s collaboration tools.

In summary, the EA offers more predictability and support, while the MCA-E provides greater flexibility but with higher administrative burdens and potential cost increases.

Pricing and negotiation opportunities

The pricing structure also differs between the EA and the MCA-E. Under the EA, organizations can benefit from significant discounts through volume pricing and long-term agreements. In contrast, the MCA-E currently focuses more on standard pricing and a more dynamic approach, which can be advantageous during price reductions but may cause uncertainty during price increases. The standardization of the MCA-E also offers less room for customized agreements, as may be possible under the EA.

License management

License management is an important aspect of both the EA and the MCA-E. Within the EA, organizations often collaborate with partners who help them comply with licensing terms and optimize software usage. With the MCA-E, this responsibility shifts entirely to the customer. This requires strong internal processes and expertise in license management, compliance, and risk management.

Impact on your organization

The shift to the MCA, with the MCA-E as the core for large enterprises, marks a strategic move toward modernization and digitization. This model offers new opportunities but also requires adjustments in how organizations structure their IT strategies and license management. The evergreen nature means organizations are responsible for regular evaluations and revisions of their software usage. While this offers flexibility, it also requires a proactive approach to manage licensing costs and minimize compliance risks.

The table below compares the key features of the Enterprise Agreement (EA) and the Microsoft Customer Agreement for Enterprise (MCA-E):

Feature	Enterprise Agreement (EA)	Microsoft Customer Agreement (MCA-E)
Duration	3 years	Evergreen (no end date)
Pricing Structure	Fixed price agreements and volume discounts	Dynamic, variable per month
License Management	Managed by partner	Managed directly by the customer
Flexibility	Limited by contract duration	Highly flexible but difficult to budget

At BeSharp Experts, we understand that this shift is not easy for every organization. Our role as an independent specialist allows us to support you in all contract forms, including the EA and MCA-E. We help your organization establish effective license management processes, conduct compliance audits, and strategically optimize your software usage. Thanks to our independence, we can guide you optimally, helping you get the most out of your Microsoft investments.

How BeSharp Experts can help you

Whether it’s a detailed cost analysis, negotiation support, or identifying optimization opportunities, we provide independent and expert advice to assist you further.