A Microsoft Enterprise Agreement typically runs for three years, and its renewal is one of the largest software decisions an organization makes. It is also changing: from 2025, Microsoft began moving many customers away from traditional Enterprise Agreements, toward the Microsoft Customer Agreement for Enterprise (MCA-E) for larger organizations and the Cloud Solution Provider (CSP) program for small and mid-sized ones.
The 12-month timeline
The volume you commit to at signature matters more than the discount you negotiate on it. Optimize first, then negotiate.
What changes under MCA-E and CSP
Reported changes include:
Volume price levels and renewal discounts as in the Enterprise Agreement are not part of MCA-E in the same way.
More flexibility to scale up or down, depending on the commitment chosen.
Assignments must be kept accurate all year, not reconciled once.
Purchased through a partner, with the partner's own terms.
Confirm the specifics for your organization with Microsoft or your partner; terms differ by segment and region.
Baseline and optimize first
Your baseline should cover every Microsoft agreement and product, license assignments and real usage. Then optimize: reclaim inactive licenses, move users to the right plans, and remove tools that duplicate what Microsoft 365 already includes. See Microsoft 365 license optimization.
Baseline checklist
Negotiate with evidence
Bring utilization, persona mix, growth plans and cloud consumption forecasts. Negotiate volume first, then price and flexibility. See how to negotiate a software renewal.
How MI One helps
Frequently asked questions
Can we still renew an Enterprise Agreement?
It depends on your size and agreement type. Ask Microsoft or your partner early which options will be offered.
When should we start preparing?
Twelve months ahead for most organizations; eighteen for very large or complex estates.
Should Azure be negotiated with Microsoft 365?
Model them together, because commitments and discounts can interact, but decide each on its own evidence.
Sources
- US Cloud, "Microsoft Enterprise Agreement changes: navigating the 2025 cloud transition." https://www.uscloud.com/blog/microsoft-enterprise-agreement-changes-navigating-the-2025-cloud-transition/
- CBTS, "The changes to Microsoft Enterprise Agreements that could affect you in 2025." https://www.cbts.com/blog/the-changes-to-microsoft-enterprise-agreements-that-could-affect-you-in-2025/