For years, the traditional Enterprise Agreement (EA) was the standard for organizations that purchased Microsoft software on a large scale. But as of January 2025, this will partially change: Microsoft will stop offering or renewing EA contracts that only include cloud products in direct markets.
Instead, Microsoft is promoting the Microsoft Customer Agreement (MCA)—specifically the MCA-E (Enterprise version). The Cloud Solution Provider (CSP) route is also gaining ground.
What licensing models are currently available? What are the key differences? And how do you choose the model that best suits your organization?
BeSharp Experts will outline your options for you – without sales talk, but with a keen eye for strategy, flexibility, and cost control.
EA vs CSP vs MCA-E: The differences at a glance
| Aspect | Enterprise Agreement (EA) | Cloud Solution Provider (CSP) | Microsoft Customer Agreement – Enterprise (MCA-E) |
|---|---|---|---|
| For who? | Large organizations (500+ seats) | All organization sizes | Large cloud-first organizations, directly with Microsoft |
| How do you buy? | Via Licensing Solution Partner (LSP) | Via Microsoft Reseller (CSP) | Directly from Microsoft |
| Commitment | 3 years, annual true-up | Monthly, annual or 3 years | 3 years, reduction only at the annual moment |
| Flexibility | Annual adjustment | Dynamic per month | Annual adjustment |
| Support | Previously via reseller, now limited | Strong partner support | Limited unless purchased additionally |
| Pricing | Volume advantage with good negotiation | Standard prices, little room for negotiation | Negotiable, often more expensive than EA |
| Management | EA Portal / VLSC | Partner manages | Via Microsoft 365 / Azure portals |
What does this mean in concrete terms for your organization?
❌ Fewer benefits with MCA-E and CSP
- Software Assurance Expires: No SA means no upgrade rights, no hybrid use rights, and no Azure benefits.
- Price certainty decreased: With MCA and CSP, price certainty only applies for the duration of a specific subscription, often 12 or 36 months.
- More complex self-responsibility: MCA-E in particular requires a great deal of internal knowledge of license management, invoicing and compliance.
✅ Benefits in flexibility and invoicing
- CSP offers flexibility: Scale per month, ideal for changing headcounts or projects.
- MCA improves invoicing: More insight and segmentation (billing profiles), useful for cost allocation.
- Perpetual licenses remain limited via CSP: Without SA, but with limited scenarios for data centers.
Choice guide: which model suits your situation?
| You have… | Best model |
|---|---|
| A stable environment and looking for low prices | EA (if still possible) |
| A dynamic organization with a lot of change | CSP |
| Full control and direct relationship with Microsoft | MCA-E |
| No internal license management or expertise | CSP |
| A complex, international landscape | EA or MCA-E |
| Still a lot of on-prem software with SA dependencies | MPSA / Open Value Research |
Our conclusion: seek advice from an independent specialist
Switching from EA to MCA or CSP isn't a simple upgrade, but a strategic shift in how you purchase, manage, and optimize licenses. Without proper advice, costs can escalate and the risk of non-compliance or overlicensing arises.
What does BeSharp Experts do for you?
We help organizations with:
– An independent analysis of your current license position
– Strategic advice about EA, MCA-E, CSP and other alternatives
– Cost optimization and support for compliance risks
- Assistance with negotiations with Microsoft or partners
Schedule a free consultation today!
Discover which licensing solutions are best suited to your organization. Call us at 085-007 0484, send an email to info@besharpexperts.com, or visit our website www.besharpexperts.com for more information.
We are happy to help you further!