Microsoft is shaking up its licensing model—if your business is on an Enterprise Agreement (EA), you might soon need to find a new solution. Come January 1, 2025, Microsoft will limit EA agreements for certain customers in direct markets (those impacted will typically fall under 2,400 users in the “Level A” EA tier). Businesses will then either need to transition to a Microsoft Customer Agreement for Enterprise (MCA-E) or a Cloud Solution Provider (CSP) model.
This shift marks a significant change in how Microsoft licenses its cloud solutions—and while it may introduce some uncertainty, it also presents an opportunity to optimize your licensing strategy and maximize value. Here’s what you need to know and how to prepare.
What This Means For Your Business
If your business is affected, you will receive a notification from Microsoft starting in January 2025, informing you that EA renewal is no longer an option. This means you’ll need to take action before your current agreement expires to ensure continued access to Microsoft cloud services.
There are two primary options:
1. Transitioning to the Microsoft Customer Agreement for Enterprise (MCA-E)
MCA-E is positioned as the evolution of the Enterprise Agreement (EA) and is designed for larger organizations. Key features include:
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Real-time pricing: Provides direct Microsoft pricing.
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Scalability: Built for global deployment and high-growth businesses.
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Microsoft support: Comes with standard Microsoft support and guidance.
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Rigid contracts: Limited flexibility in terms and commitments.
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Limited customizations: Fewer options to tailor solutions to specific business needs.
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Higher costs: May result in increased licensing expenses.
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Administrative and budget challenges: Transitioning from an EA to an MCA-E can be time-consuming and require financial planning.
2. Partnering with a Cloud Solutions Partner (CSP)
For businesses looking for more flexibility, affordability, and hands-on support, CSPs provide an ideal alternative:
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Competitive pricing: Costs vary between partners, allowing businesses to find the best value.
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24/7 tailored support: Access to expert guidance and responsive customer service.
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Scalable contracts: PAYG (Pay-As-You-Go) licensing enables businesses to adjust as needed.
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Expertise in licensing and cloud adoption: Partners specialize in cost optimization and best-fit solutions.
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Tailored solutions: Greater customization based on business needs.
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Hands-on support: Direct assistance from experienced professionals, not just a middleman.
When deciding between CSP’s and the MCA-E model, take into consideration the size of your business, your industry, any unique needs of your business, your available resources, but most importantly how the CSP can add value to your IT practice.
How to Choose the Right CSP Partner
With your business on the line, it’s important to carefully evaluate potential CSP’s before making the transition. Here are some key questions to consider when researching Microsoft CSP partners:
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Is the partner a direct or indirect Microsoft partner?
Direct CSPs have a direct relationship with Microsoft and can provide more hands-on support. Indirect CSP’s work through distributors, which often translates to higher costs due to the presence of another broker (distributor).
Validate if a CSP is a direct Microsoft partner here.
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Does the partner provide 24/7 customer and technical support?
Your business can’t afford downtime. A CSP with true 24/7 support ensures help is available when you need it most. Look for CSPs with onshore support and strong customer proof.
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Does the partner have Microsoft expertise?
Many CSPs just resell licenses. The best partners are an end-to-end partner with services, support, and expert technical guidance to help you get the most from your Microsoft investment.
A partner should have deep Microsoft knowledge—not just in licensing but also in implementation, migrations, and cost optimization. You can validate this with their certifications and Solutions Partners Designations.
Why This Could Be a Positive Change for Your Business
While being pushed off EA is disruptive, transitioning to a CSP could actually work in your favor. With the right partner, businesses get expertise on implementations, migrations, and licensing optimization. Allowing businesses to avoid overpaying for unused features and aligning licensing strategy to your actual business needs.
Additionally, unlike the traditional EA model, where Microsoft support is often impersonal and slow, a great CSP offers dedicated support teams that actually care about your business – prioritizing resolution and your business continuity.
Lastly, CSPs offer more flexible, scalable options that align with your growth, rather than locking you into rigid multi-year agreements.
Next Steps: Preparing for the Transition to CSP
If your business currently relies on an EA and currently has a headcount of less than 2,400, now is the time to start evaluating your options. Don’t wait until Microsoft notifies you, being proactive now will ensure a smoother transition.
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Step 1: Assess your current Microsoft licensing and cloud needs.
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Step 2: Research CSP partners that align with your business goals.
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Step 3: Work with a CSP to map out your transition plan.
Don't wait until Microsoft notifies you—be proactive. At Trusted Tech Team, we specialize in helping businesses transition smoothly from EA to CSP with personalized licensing strategies, cost-saving insights, and expert 24/7 support. Contact us today and future-proof your Microsoft licensing.
