As most of you may have already registered, Microsoft announced on August 12, 2025 that it will be changing how online services are priced under Enterprise Agreements (EA), MPSA, and OSPA. From November 1, 2025, the familiar volume-based discounts will no longer apply. Instead, all customers will pay the standard Level A list price, no matter how many users they have.

The change does not hit everyone at once. It will apply as organizations renew contracts after November 1 or add services that are not already included in their agreement. For many, the impact will come gradually over the next renewal cycle.

This update matters because it alters how companies need to think about Microsoft licensing. Larger enterprises that relied on tiered discounts will see costs increase, while smaller organizations will notice fewer differences. Either way, the shift makes optimization and planning more important than ever.

What is changing

For many years, larger organizations benefitted from Microsoft’s tiered pricing model. EA customers with thousands of users could secure B, C, or D level discounts that lowered costs by 6 to 12 percent.

That model is ending, and the effect will be straightforward: at your next renewal, every license will be billed at Level A list price.

Why Microsoft is making the change

Microsoft explains that the goal is to create consistency and transparency across licensing channels, bringing EA pricing in line with how Azure is already structured. Simplifying licensing models also reduces complexity for customers.

At the same time, the change naturally increases average revenue per user and encourages organizations to consider alternative procurement routes such as CSP.

How to respond

With discounts gone, organizations need to rethink their licensing strategies. Renewals will no longer be about negotiating volume tiers but about making smarter choices in how licenses are purchased and used. This requires more visibility and intelligence than most organizations currently have, which is why you should consider adopting an Identity Visibility and Intelligence Platform (IVIP). An IVIP gives you a complete view of your identities. Once that visibility is in place, improvements in licensing and security follow naturally. You see which accounts are active, how they are used, and where risks or unnecessary costs exist. With this clarity, optimizing licenses and strengthening security shifts from being a manual effort to becoming a continuous process.

Here are the most effective steps:

1. Audit your current usage
Inactive or over-provisioned accounts now cost you full list price. Identifying them early is critical.

2. Right-size assignments
Not every employee needs an E5 or even an E3. Aligning license types with actual usage prevents unnecessary spend.

3. Consider your procurement channel
CSP (Cloud Solution Provider) agreements become more attractive in this new model. They offer monthly flexibility, shorter commitments than EA’s three-year lock-in, and better alignment with seasonal or project-based staff. For some organizations, moving to CSP will offset part of the cost increase.

4. Plan renewals well in advance
With discounts off the table, savings come from preparation. Organizations that wait until the final weeks of renewal will miss opportunities to optimize.

5. Strengthen collaboration between IT and finance
Finance teams need realistic forecasts. IT teams hold the usage data. Building a joint process ensures better decisions and fewer surprises.

In short: the removal of volume discounts shifts the focus from negotiating leverage to operational efficiency and intelligence-driven license management.

How Bsure helps

Microsoft’s new model makes license management more important than ever. What used to be covered by volume discounts must now be addressed by smarter, data-driven decisions. This is where Bsure creates value.

More broadly, this shift also highlights the growing need for an Identity Visibility and Intelligence Platform. As Gartner recently introduced, IVIP solutions give organizations a comprehensive view of all identities and entitlements, turning that visibility into actionable intelligence. In practice, this means being able to continuously optimize licenses, strengthen security, and forecast future needs with confidence.

Bsure is built exactly for this purpose.

Optimize costs with precision
Our platform identifies redundant and inactive licenses across your environment. Instead of relying on manual audits or static spreadsheets, you get real-time insight into where money is being wasted.

Enhance security at the same time
Unused accounts are not only a financial burden, they also introduce security risks. Bsure helps detect dormant accounts that could become attack vectors, helping IT teams tighten security while reducing costs.

Insights into user activity and license assignments
Bsure provides visibility into how licenses are being used day to day. By connecting user activity with license assignments, it becomes clear where adjustments can be made. This helps organizations avoid over-provisioning and ensures that licenses match actual needs.

Simplify complex decisions
Our dashboards are built to give both IT and finance teams the same picture. From high-level reporting to granular license activity, Bsure turns complexity into actionable steps that support faster and more confident decisions.

Be ready for renewals
With EA discounts gone, last-minute negotiations will not deliver savings. Bsure equips you with the data and insights you need well before renewal, ensuring that you enter discussions with a clear plan.

The AI-driven license recommender

This fall, Bsure will launch its AI-driven license recommender. This feature takes optimization a step further by suggesting the most cost-effective license mix based on real user behavior. It eliminates guesswork and enables organizations to adjust licensing strategies continuously, not just at renewal.

Stay tuned for an exciting update.

Key takeaway

Microsoft’s decision to eliminate EA discounts changes the rules for license management. Costs will increase, predictability will decrease, and flexibility will matter more than ever.

The organizations that succeed will be those that act early, optimize continuously, and adopt platforms that deliver identity visibility and actionable intelligence.

Bsure is here to help you do exactly that: manage costs, secure your environment, and prepare for the future of Microsoft licensing with confidence.

Be cost-effective. Be secure.