Change is never easy, but it feels even more daunting when an entire way of doing business is getting replaced.
And that’s what Microsoft is doing – as of 1 January 2025, a subset of Enterprise Agreement (EA) customers has been instructed to choose between an MCA-E (Microsoft Customer Agreement for Enterprise) or a Cloud Solution Provider (CSP) approach for future licensing.
It’s the first wave of Microsoft turning the page on EAs – the goal being to eventually move all previous EA customers into the subscription models that have served the rest of the market so well in recent years. While it may feel like a period of uncertainty for customers making the transition, it’s also a chance for them to reimagine how their business uses key technologies, rethink Microsoft licensing for a cloud-first future and explore the potential of the broader Microsoft technology stack.
Curtain call for EAs
The EA was once the steadfast choice for enterprise organisations – a three‐year commitment that provided predictable licensing and security. Yet, as business needs have progressed and agility becomes paramount, these long‐term agreements have stifled innovation. Microsoft has made it clear: the era of the EA is drawing to a close in favour of more dynamic ways of doing business that are flourishing elsewhere.
Two paths have emerged from this announcement. For most enterprise organisations, however, the partner‐led Microsoft Cloud Solution Provider (CSP) model is the way forward, while the MCA-E model is designed for the very largest enterprises (3,000+ users) who want to transact directly with Microsoft.
Embracing a new licensing landscape
The CSP model is built on flexibility. Unlike the EA which is focused on upfront commitments and costs, plus a pretty rigid contract – CSP allows customers to pay-as-you-go, easing budget pressures and aligning their expenditure with actual software and technology usage. This flexible approach is particularly relevant for those looking to migrate on-premises workloads into the cloud, a move that Microsoft is keen to encourage for legacy EA customers.
What makes CSP even more attractive is the opportunity to obtain robust support from an expert partner. As a partner-led model, it enables authorised providers like Servium and Advania, to continually work closely with customers. Rather than leaving them to figure out new-world licensing challenges on their own, we’re here every step of the way – from billing and provisioning to ongoing management. Given Advania’s day one heritage in Microsoft cloud services, we’re perfectly aligned with the cloud-first world that EA customers are now stepping into.
Opportunities amid change
Moving away from the EA model unlocks several key benefits for enterprises. Not only can they better manage their budget by spreading costs over time, but they can also free up their own resources to reinvest in innovation and growth. The shift to CSP isn’t solely about easing financial pressures – it’s an invitation to tap into the full breadth of Microsoft technologies. Beyond Microsoft 365, there’s vast potential in leveraging Azure and other offerings from Microsoft’s portfolio. With the added advantage of welcomed Microsoft funding programmes and commercial support that we can help to negotiate, the transition can be both cost-effective and transformative.
Of course, such a shift does present challenges. Leaving behind a long-standing EA means unpicking licensing types, harmonising requirements with new commercial models and understanding the nuances of CSP. It requires expert guidance for sure. But the Servium-Advania focus on the cloud and the services we have developed for customer enablement and exemplary support are poised to help them drive value from the move.
Life after EA
The truth is the world after EA is actually filled with many new possibilities. Now, customers can embrace a future where their IT investments are more closely aligned with their business needs and they pay based on these demands. This is the time to explore innovative solutions, integrate more deeply with Microsoft’s stack, and cultivate a more agile operational environment.
This article is a modified version of a Servium blog post
