Microsoft launches major CSP enhancements: here’s what it means for you
3 minute read
Becky Brown
May 13th, 2025
Extended subscription terms, exclusive discounts, streamlined upgrades, and smoother transitions mean Microsoft CSP is evolving, and we’re here to help you make the most of it.
Microsoft has announced a range of changes to its Cloud Solution Provider (CSP) programme, transforming how public and private sector organisations can procure and manage Microsoft 365. For organisations reviewing their licensing strategies or considering moving away from Enterprise Agreements (EA), these updates couldn’t come at a better time.
We work closely with Microsoft and our customers to stay ahead of the curve, and today, we’re breaking down what’s new, what it means for you, and how we can support your next step.
Three-year Microsoft 365 subscriptions are here
One of the most significant changes is the introduction of three-year subscription options for a range of Microsoft 365 products via CSP. Previously limited to one-year terms, organisations can now opt for longer commitments that provide better commercial predictability, without sacrificing the flexibility CSP is known for.
What’s included in the three-year commit?
Starting 1st June 2025:
- Microsoft 365 E3 (with and without Microsoft Teams)
- Microsoft 365 E5 (with and without Microsoft Teams)
- Microsoft Teams Enterprise standalone
From 1st July 2025:
- Microsoft 365 E5 Security mini suite
- Microsoft 365 E5 Compliance mini suite
Key details:
- Same pricing as 12-month SKUs
- Requires a minimum of 100 seats
- Upfront or annual billing options only (monthly not available)
- Existing subscriptions can only be converted to 3-year terms at renewal
This shift offers organisations with predictable needs a powerful new way to simplify budgeting while still benefiting from CSP’s scalability.
Exclusive 10% discounts for new customers
To mark the launch of these three-year offers, Microsoft is introducing limited-time incentives for new CSP customers.
Offer one: available from 9th June to 31st December 2025:
- 10% discount on Microsoft 365 E3 and E5 (with or without Teams)
Eligibility criteria:
- New customer status
- Three-year commitment
- Upfront and annual billing options
- Minimum 100 seats (maximum 2,400)
Offer two: available from 1st July to 31st December 2025:
- 10% discount on Microsoft 365 E5 Security and E5 Compliance mini suite
Eligibility criteria:
- New customer status
- Three-year commitment
- Upfront and annual billing options
- Minimum 100 seats (maximum 1 million licences)
If you’re new to these solutions or considering a transition from EA, now is a strategic time to engage with us and explore this opportunity.
Faster turnaround for mid-term upgrades
Microsoft has also taken major steps to improve operational efficiency within CSP. Customers who upgrade their subscriptions mid-term often require standalone products to be removed will now benefit from automated processing.
Where this process could previously take up to five days, it can now be completed within 24 hours, allowing you to respond more quickly to evolving needs and avoid operational delays.
EA to CSP transitions now seamless
Another major policy shift is aimed at customers moving from Enterprise Agreements to CSP. Previously, organisations moving from EA to CSP were required to purchase Microsoft Teams separately, even if their M365 licences previously included it.
Following customer feedback, Microsoft has changed course. Organisations with existing Microsoft 365 licenses that include Teams will retain that entitlement when transitioning to CSP, removing a major barrier and making the move significantly smoother.
Note: This applies only to existing customers with Teams bundled into their Microsoft 365 E3 or E5 plans. New CSP customers will still need to licence Teams separately.
Why work with Phoenix?
Microsoft’s licensing changes rapidly, and staying informed is key to protecting your budgets and aligning licensing with your digital strategy.
We offer:
- Proactive licensing advice: our Microsoft Licensing Specialists break down complex updates and advise on the best route forward
- Tailored transition planning: whether moving from EA to CSP or optimising your current CSP estate, we help minimise disruption and maximise value
- End-to-end support: from procurement to renewal, our dedicated teams support your goals with clarity and confidence
These CSP changes are designed to give you more choice, more value, and more control, but the best route forward depends on your organisation’s structure, goals, and existing agreements.
Whether you’re reviewing your Microsoft roadmap, exploring multi-year licensing options, or simply want to understand how the changes apply to you, we’re here to help.
Get in touch
About the author
Becky and 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.