From November 1, 2025, Microsoft will introduce a new pricing structure for Online Services as part of volume license agreements*. In future, all customers will be subject to the Standard price of Level Aas published on Microsoft.com. The previous discount levels B-D are no longer applicable.

For many companies, this means significant price increases at the next renewal or when purchasing new services.

*Online services as part of volume license agreements are cloud services such as Microsoft 365, Dynamics 365 or Azure, which companies were previously able to obtain via Enterprise Agreements (EA), MPSA or OSPA at different conditions.

Until now, Microsoft has used the so-called waterfall model:

• Companies were assigned to a price level (A-D) depending on their size and license volume.
• Level A: small organizations / low volume → highest price
• Level D: large organizations / high volume → lowest price

👉 As the number of licenses increased, companies were able to achieve discounts of up to around 12 %. Larger organizations in particular benefited significantly from the price tiers.

The change will come into force on November 1, 2025. From this date, it will apply both to contract renewals and to the purchase of new online services that are not on the current Customer Price Sheet (CPS). Already price-fixed products under existing contracts will remain unchanged until the end of their term.

Microsoft has been pursuing a Strategy of simplification and standardization.

• The aim is to Price logic more transparent and harmonize them across all channels.
• Similar steps were already implemented in 2017, 2018 and 2023.
• According to Microsoft, partners and customers should spend less time negotiating discounts and focus more on the business benefits of cloud services.

For many companies, however, this "simplification" means Higher costs with the same performance.

Companies that previously licensed their online services via Enterprise Agreements (EA), MPSA or OSPA should now check how the price change will affect their contracts and budgets.

Possible steps:

• Analyze renewals at an early stage: Discounts for level B-D will no longer apply from November 2025.
• Check price lists: From October 1, 2025, Microsoft will publish a Price List Preview with the new Level A prices. This will allow current contracts and budget plans to be adjusted at an early stage. More information at Microsoft
• Evaluate Microsoft's Cloud Solution Provider (CSP) model as an alternative.

With the Cloud Solution Provider (CSP) program, Microsoft offers a licensing model that is particularly characterized by flexibility and transparency. In contrast to traditional volume license agreements, companies benefit from:

• Flexible terms: Licenses can be booked monthly or annually and adjusted at any time.
• Transparent billing: Only what is actually used is billed - an advantage especially with Azure Consumption.
• Direct support via the partner: Advice and support are an integral part of the model.
• Fast availability: New services can be activated at short notice, without complex contractual processes.

Particularly in view of the upcoming price changes CSP represent an interesting alternative for many organizations. However, whether this model fits depends on the individual requirements and the existing IT strategy.

We are happy to support you with a Review and analysis of the current license and infrastructure and create a needs-based optimization plan on this basis. Among other things, this includes the development of a comprehensive licensing concept, an ROI calculation and a roadmap for long-term optimization.

👉 Let's review your license strategy together