Microsoft Licensing 2025: The Real Impact of Standardized Pricing

Starting November 1, 2025, Microsoft is shifting to standardized pricing for Online Services. Enterprise Agreements will no longer include volume-based discounts, moving all customers to a standardized commercial pricing model. For organizations that have relied on volume-based discounts, the change could result in higher costs, more complicated budgeting, and a need to rethink renewal strategies. Below, we discuss the implications, challenges, and strategic responses to ensure your organization is prepared.

To cover these changes, we will be hosting a webinar on Microsoft Licensing on October 15, 2025, to discuss what is changing and how Anglepoint can help your organization navigate through the transition.

What Exactly is Changing?

Microsoft is removing volume-based discounts for key Online Services across its most common licensing agreements. That means pricing will shift from reduced pricing for large corporations to a single, standardized model.

When it starts: November 1, 2025.

Which agreements: Enterprise Agreements (EA) and Microsoft Products and Services Agreements (MPSA).

Which services: Core per-user services, including Microsoft 365, Dynamics 365, and others.

Why it matters: Microsoft’s goal is to create simplified pricing, improved transparency, and align online services. For many organizations, moving could mean some cost increases and new negotiation challenges.

The Financial & Strategic Impact on Your Business

Moving beyond the sticker price, this change necessitates a deeper look at your IT procurement and budgeting strategy.

Rising Costs

Starting November 1, 2025, both new online purchases and renewals will be affected.

• (Level B) – Mid-size customers may see approximately 5-7% cost increases.
• (Level C) – Larger organizations could face about 9% higher costs.
• (Level D) – Largest enterprises may experience increases of 15% or more.

Complex Budget Forecasting

Without predictable pricing, long-term budget planning becomes harder. IT and finance teams must now forecast costs in a more dynamic and less predictable pricing environment, requiring more frequent reviews.

A Required Shift in Strategy

This isn’t just a price change; it’s a strategic push. It forces a re-evaluation of the default EA renewal in favor of exploring alternatives like CSP, which offers greater flexibility and partner-provided value-added services.

Proactive Strategies to Mitigate the Impact

Instead of reacting to price increases, take control. With a proactive approach, this challenge becomes an optimization opportunity.

Deep Dive License Optimization

Go beyond a simple license count. Implement a continuous process of “license harvesting” by reclaiming unused licenses, “right-sizing” users to appropriate E3/E5/F3 plans based on actual usage and eliminating costly unused monthly subscriptions.

Evaluate All Licensing Avenues

Review Enterprise Agreements, CSP, and Pay-As-You-Go side by side. For many organizations, CSP offers more agility and cost savings, with monthly, annual, and new three-year subscription terms, plus partner support. Don’t assume your current agreement is still the best fit.

Negotiate on Value, Not Volume

The negotiation conversation with Microsoft must evolve. Shift the focus from volume discounts to overall value. That could mean negotiating for extended support, funded workshops, deployment help, or flexible terms that matter most to your business.

Strategically Navigate the New Microsoft Landscape with Anglepoint

Managing these changes requires specialized expertise. Anglepoint’s deep experience in Software Asset Management (SAM) provides the clarity and data you need to make informed, cost-effective decisions.

Data-Driven Optimization

You get a definitive Effective License Position (ELP) and 365 User Profiling report. Our advanced tooling and analysis provide you with a clear, actionable view of your entire Microsoft estate, highlighting specific opportunities to reduce waste and optimize spending.

Strategic Roadmap & Planning

You leave with more analysis. We help you build a comprehensive EA renewal or CSP transition plan, ensuring your licensing decisions align perfectly with your long-term business and technology roadmap.

Expert Negotiation Support

You walk into negotiations prepared with industry benchmarks, contractual insights, and data-backed arguments, so you can negotiate from a position of strength to secure the best possible terms and overall value from Microsoft.