The world of Microsoft licensing is undergoing significant changes that will take effect starting in January 2025. These changes have been known for some time, but the moment of implementation is fast approaching. It is now critical to understand how these changes will specifically impact your organization. These changes will not only impact how companies acquire licenses, but also their digital transformation strategies. Whether you are a small business or a large enterprise, it is essential to understand and prepare for these changes early.
In this blog, we will map out the most important changes in Microsoft licensing as of January 2025 and explain what this means for your agreements. We will keep it clear and concrete, so that you can already gain insight into the consequences of these changes for your organization.
For a comprehensive analysis of the impact and to determine the best approach for your specific situation, we are happy to advise you further.
- Change in the Enterprise Agreement (EA) for cloud customers
Starting January 1, 2025, some cloud Enterprise Agreements (EA) will no longer be renewed under the existing EA model. Microsoft will notify these customers in early 2025 that renewal of their current EA will no longer be possible. It will be replaced by the Microsoft Customer Agreement for Enterprise (MCA-E), the successor to the traditional EA.
What does this mean to you?
If you currently have a cloud EA, you will need to move to the MCA-E model or a Cloud Solution Provider (CSP) option.
- New choices for companies with fewer than 3.000 employees
Organizations with fewer than 3.000 employees are referred to by Microsoft as “SMC” (Small and Midsize Customers). According to Microsoft, the CSP model offers specific advantages that meet the needs of this group, mainly due to its flexibility and ease of use via resellers. For larger organizations, the so-called “Enterprise customers” with more than 3.000 employees, more control and self-management is often important, which makes the MCA-E model more attractive.
Microsoft emphasizes: “CSP is our hero motion for driving end-to-end success for small and midsize customers (SMC).” This refers to the role of the CSP model for companies with fewer than 3.000 employees, which Microsoft believes better suits their operational requirements.
What does this mean to you?
For organizations in the SMC segment, both the CSP and MCA-E models remain available, each with their own advantages and disadvantages. As an independent advisor, we are happy to help customers map out the impact of both models. Together we look at which option better suits your license management and the future needs of your organization, so that you make a choice that suits your situation.
- Payment flexibility and new billing options
Starting December 1, 2024, Microsoft will offer a new monthly payment option for annual subscriptions of Microsoft 365 Copilot and other related products. This option offers more choice in payment methods, but will incur a 5% surcharge for monthly payments instead of annual payments.
What does this mean to you?
You can opt for monthly payments if your cash flow requires it, but keep in mind that this option will be more expensive than annual payments. From April 1, 2025, all products with monthly subscriptions will be standardized for annual contracts, which will provide more transparency in your billing.
- Change in the Maximum Resale Price (MRP)
Starting in July 2025, Microsoft will revise the calculation formula for the Maximum Resale Price (MRP), which may impact the pricing of licensed products purchased through resellers and partners.
What does this mean to you?
Companies that purchase licenses through partners should prepare for possible price increases starting in the summer of 2025. The revision of the MRP could increase the cost per license, so it is important to understand the potential impact on your budgets and anticipate it in time.
- AI Integration and Discount on Microsoft 365 E5
Starting January 1, 2025, Microsoft is offering a 15% discount on Microsoft 365 E5 subscriptions for customers who move to the latest productivity and security tools, including AI capabilities.
What does this mean to you?
This discount may seem attractive, but it is important to investigate together with BeSharp Experts whether this discount is really the best choice for your organization. By exploring the different options, we can determine which scenario best suits your specific needs and which is the most financially beneficial for you.
AI integration can make your organization more efficient and accelerate digital transformation, but it is essential to know whether this transition fits within your broader IT strategy and budget. BeSharp Experts ensures that you gain insight into the different scenarios, so you can make an informed decision.
What do these changes mean for your agreements?
The changes to Microsoft’s licensing model will have a significant impact on your licensing costs, contract structure, and the way you manage technology. Whether you’re moving to a new licensing model or looking for more flexibility in payment options, it’s critical that you’re well-informed about the impact of these changes on your organization.
Would you like to know exactly what these changes mean for your agreements?
Please contact us directly! BeSharp Experts is an independent advisor in the field of Microsoft licenses. We are happy to help you investigate the various alternatives and gain insight into the financial impact of these changes. We ensure that you have a clear view of the options, so that you can make well-considered choices that optimally match your organization.
Since these changes can have a major impact on your licensing costs and IT strategy, it is essential to thoroughly investigate the pros and cons of the new capabilities together with an independent expert such as BeSharp Experts. This will help you make an informed decision that best suits your organization's needs.
Would you like to delve deeper into the impact and specific choices for your organization?
We are ready to support you in this, so that you can prepare yourself in time for the upcoming changes and make a well-considered choice.
Source: partner.microsoft.com/en-US/blog/article/accelerating-growth-through-partners-in-the-era-of-ai