Microsoft EA Volume Agreements Ending What You Need to Know Before November

Microsoft Enterprise Agreement Discounts Disappearing

This means that the automatic discounts of 6% to 12% (with up to 12% for “Level D” customers with 15,000+ users) will disappear. Instead, all online services pricing, including Microsoft 365, Dynamics 365, Windows 365, and Microsoft’s security/compliance/identity products, will flatten to Level A list price — essentially the same as the Microsoft website price.

On-premises software and government/education licensing are exempt. But for commercial enterprise customers, this shift means fewer guaranteed savings and more pressure to negotiate or rethink licensing strategies.

EA Discount Changes – Before and After 1st November 2025

To make it easy to see the impact, the table below shows the current EA discounts by level and what will happen after 1st November 2025:

As you can see, enterprises that previously benefited from Levels B, C, or D discounts will face a noticeable increase in licensing costs unless they plan ahead.

Why Microsoft Is Doing This

Microsoft calls the move an effort to “simplify licensing and improve pricing clarity.” In reality, industry analysts see it as part of a long-term strategy to:

• Push more mid-size and large enterprises away from EA and into Cloud Solution Provider (CSP) channels
• Reserve direct relationships and custom deals for only the very largest or most strategic customers
• Accelerate services revenue growth by eliminating automatic discounts and standardising online services pricing

For customers, the result is clear: budget pressure is going up.

What This Means for Enterprise IT Leaders

If your EA started before 1st October 2025, your current discounts only remain until you add a new online service after 31st October.

If your EA starts on or after 1st November 2025, you’ll no longer receive any automatic programmatic discounts — everything moves to Level A list price.

Enterprises that once relied on EA volume discounts will now need to rely on better planning, tighter negotiations, or CSP partnerships to manage costs. Combined with Microsoft’s recent account manager reductions, many customers are left with less support, more complexity, and rising costs.

How Xeretec Helps You Beat the Changes

At Xeretec, we’re already helping enterprise organisations prepare for this shift. Our Microsoft 365 Assessment Service gives you the insight and flexibility to avoid unnecessary spend.

Customers using our service typically save up to 36% on their Microsoft 365 licensing by:

• Identifying underutilised and inactive licences
• Rightsizing licence types to actual usage
• Highlighting redundant services
• Building a tailored optimisation plan to match workforce needs

Preferential Pricing Through Xeretec’s NCE Agreement

With Microsoft flattening discounts, where you buy from matters more than ever. Through Xeretec’s New Commerce Experience (NCE) agreement, we can offer preferential pricing unavailable to many organisations negotiating directly with Microsoft.

That means:

• More flexibility than EA commitments
• Blended monthly and annual terms for agility
• Pricing advantages that protect you against the November changes

When combined with our M365 Assessment, this ensures your organisation isn’t paying for wasted licences while also gaining access to stronger commercial terms.