CSP vs EA: which one is right for your organisation?
4 minute read
Becky Brown
June 12th, 2025
Microsoft offers various agreement models and purchasing routes for procuring licensing subscriptions, and it can be difficult to determine which is the best route for your organisation.
Read more to explore and compare the following purchasing routes:
- Microsoft Enterprise Agreement (EA)
- Microsoft Cloud Solution Provider (CSP)
Microsoft EA
A Microsoft Enterprise Subscription Agreement is categorised as a volume licensing agreement. This is a traditional purchasing route that has been adapted to accommodate for Online Services, on-premises solutions, and Azure.
This does not come with supporting services as standard, these will need to be purchased directly with Microsoft via a Unified Support agreement, or via a third party, such as Phoenix. Commercial and Not-for-Profit (NFP) organisations will be billed directly by Microsoft. This is classed as a direct agreement. Public sector organisations are required to enter into an indirect agreement, due to the frameworks that are in place. These organisations will be billed by the Microsoft partner, i.e. Phoenix Software. The standard agreement commitment is for 3 years with an annual billing cycle.
There are the following pre-requisites for an Enterprise Agreement:
- A pre-credit check (Direct only)
- Sector eligibility checks (Public sector self-certification required for CCS frameworks)
- Minimum purchase commitment
- Qualifying products
Microsoft CSP
CSP is Microsoft’s modern cloud programme to encourage users to move to the cloud. It is designed to facilitate online services, Azure, and on-premises software to run alongside partner services provided with the programme.
CSP is designed to be more flexible compared to traditional volume licensing agreements. Microsoft introduced NCE (New Commerce Experience) within CSP which introduced defined commitment and billing periods, however organisations still have the choice to commit and be billed on a triennial, annual or monthly basis (subject to availability).
This is partner led so you will be billed by Phoenix.
These are the following pre-requisites for an CSP Agreement:
- Sector eligibility checks
- Complete a reseller relationship link
- Sign up to PSP (our self-serve, customer facing portal)
Microsoft CSP vs Enterprise Agreement
Offering | Enterprise Agreement (EA) | Cloud Solution Provider (CSP) |
Target audience | Large organisations | Small, medium and large organisations |
Sector availability | Commercial, NFP, education, and public sector (PS) | Commercail, NFP, and education |
Agreement term | 3 years fixed term | Evergreen agreement |
Online services team | 3 years fixed term | Monthly, annual, and triennial options |
Billing terms | Annual for 3 years. Azure consumption billed monthly in arrears or via Annual Azure prepayment | Monthly, annual, and triennial options. Azure consumption billed monthly in arrears |
Invoicing | Invoiced directly by Microsoft (except for PS) | Invoiced by Phoenix |
Minimum commitment | A minimum of 100 for PS, 1000 for education, 250 for NFP and 500 for commercial qualified users | No minimum commitment required |
Org-wide commitment | Yes | No |
Azure offerings | Azure Prepayment. Reserved Instances and Saving Plans | Reserved Instances and Saving Plans |
Product availability | Azure, on-premises software, and online services | Azure, on-premises software, and online services |
Product type | Subscriptions only | Subscription and perpetual |
Availability of Software Assurance | Software Assurance is included when purchasing via an EA | There is no notion of Software Assurance in CSP. Similar benefits are provided in software subscriptions |
Co-term availability | Yes, to each anniversary or renewal (online services only) | Yes, to the calendar month or existing subscription (online services only) |
Scaling down | Can be done at each anniversary providing the minimum commitment is met | Can be done at the end of each commitment term |
Scaling up | At any time during the agreement | At any time during the agreement |
License management | Done via the Microsoft Admin Portal (MAC) | Assignment and user management is done via the Microsoft Admin Portal (MAC). Purchasing and renewal management can be done via PSP |
Support and services | Not included. Purchased seperately via Microsoft’s Unified support | FOC services bundled with your NCE purchases. Additional managed services are available at request |
Pricing | Formalised pricing and discounts set by Microsoft | Flexible pricing set by Phoenix |
Price protection | Protection throughout the agreement term | Protected throughout the subscription term |
Which route is best for your organisation?
- Commercial organisations: CSP offers significant savings over an Enterprise Agreement up to 20% lower costs via NCE
- Public sector organisations: enterprise offers public sector offers and discounts; there are no such offers in CSP
- Small and medium NFP end users (under 250 users): CSP NCE offers NFP price levels and donations of Business Basic, Premium, and Power Apps
- Large NFP end users (over 250 users): Enterprise offers up to 75% discounts on products and provides grants of Office 365 E1 and Power Apps alongside a volunteer use benefit of FOC Microsoft 365 F3 in ratio with your committed qualifying licensing
- Small education end users (under 100): CSP NCE offers Academic Price Levels along with Faculty and student SKUs along with student use benefits
- Large education end users (over 1000): an Education Enterprise agreement (EES) provides EDU offers that are not comparable in CSP
*Please note that if you fall under NHS, central or local government, defence, or housing, this is categorised as public sector under Microsoft’s Terms, and you will only be able to benefit from public sector offers under an Enterprise Agreement.
Determining which agreement depends on your organisations sector eligibility, size, and specific needs. CSP stands out for Commercial and SMB end users that want to benefit from greater flexibility, support, and a more cost-effective solution.
It depends. Cost depends on your organisation size, sector eligibility, commitments, licensing profile, flexibility needs, and support needs. Microsoft updates its pricing and terms, so ask for a current comparison before you decide.
A Microsoft Cloud Solution Provider (CSP) is a Microsoft partner that sells and supports Microsoft cloud subscriptions. Your partner sets the pricing and bills you, not Microsoft. Phoenix is a Microsoft Cloud Solution Provider, and customers manage purchases and renewals through our PSP portal.
A Microsoft reseller sells Microsoft licences and subscriptions, and many also offer support and advice. Check the partner’s Microsoft accreditations, the frameworks it can sell through, and what support is included. Phoenix is a Microsoft Solutions Partner and Cloud Solution Provider.
Eligibility depends on your sector and size. Some routes have minimum user numbers, and not every sector can use every route. Our comparison table shows the differences, and a Phoenix licensing specialist can confirm which routes suit you.
Possibly, depending on your sector, size, and where you are in your agreement. An EA runs for three years, so the end of the term is a natural point to review your options. A Phoenix licensing specialist can talk you through them.
As the UK’s top Microsoft partner, we’re in an exclusive position to help your organisation with your Microsoft licensing. Get in touch today for support.
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About the author
Becky Brown, Head of Microsoft Licensing and Strategy.
Becky has been leading the Microsoft Licensing practice since 2016. With her extensive experience in managing Enterprise Agreement contracts and customers’ licensing requirements, Becky has built one of the largest Microsoft Licensing Teams in the channel.
In 2022, Becky’s role expanded to include leading Phoenix’s regional strategy. She has been successful in strengthening our relationships with both Microsoft and customers in the North-West and North-East regions, expanding our available office space to these areas through the development of partnerships with customers in region.