Microsoft streamlines volume licensing pricing model
3 minute read
Becky Brown
August 13th, 2025
Microsoft has unveiled an update to its volume licensing pricing model.
Beginning 1st November 2025, all Online Services under Enterprise Agreement (EA), and MPSA, will move to a single, standardised price level (Level A). This marks a significant shift away from the traditional tiered pricing model, bringing greater transparency and simplifying the buying experience.
What’s changing?
Uniform pricing across all levels
Microsoft will eliminate waterfall discounts (Levels B–D), aligning all pricing with the publicly published Level A rates.
Agreements affected
This change impacts:
- Enterprise Agreement (EA), including Enterprise Enrollment, Server & Cloud Enrollment, and Enterprise Subscription Enrollment
- Microsoft Products and Services Agreement (MPSA)
In scope
Applies only to online services such as Windows 365, Microsoft 365, Dynamics 365, and all security/ compliance/ identity products. Note: Azure services do not have price level discounts. On-premises software is not affected, and Education volume licensing is excluded.
Timing
- New purchases of online services from 1 November 2025 will use Level A pricing.
- Agreement renewals from that date will also move to the new pricing model.
Why this matters
- Greater pricing transparency
No more navigating complex tiered discounts – customers can easily compare and understand pricing. - Simplified procurement
The sales process becomes more focused on business value and outcomes, rather than pricing mechanics. - Consistent treatment across channels
Whether you buy through EA or CSP, online services pricing will now be consistent.
How to prepare
- Engage early
Speak to your Phoenix Microsoft Licensing Team and/ or your Phoenix Account Manager now to review how this will impact your current agreements and renewals. - Get full visibility and controlTake advantage of our cloud cost optimisation services to strategically manage and optimise your Microsoft 365 spend before your renewal comes up.
Don’t wait until renewal
These changes could affect your future IT budgets, procurement cycles, and negotiation strategy. Engage with our Microsoft Licensing Team or your Phoenix Account Manager today to assess the impact, explore cost optimisation opportunities, and plan your next agreement with confidence.
Contact us
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.