BLOG
Microsoft Eliminates EA Price Tiers—Here’s What You Need to Know
Microsoft just announced pricing changes that could have ripple effects on your IT budget. Starting November 1, 2025, the company will eliminate price tiers for online services purchased under both the Enterprise Agreement (EA) and the Microsoft Product & Services Agreement (MPSA).
While Microsoft hasn’t disclosed exactly how this will be implemented, the implications for enterprise buyers are real—and potentially expensive.
What’s Changing?
Historically, Microsoft’s EA pricing has been structured around volume-based tiers—Levels A, B, C, and D. These levels rewarded larger customers with better per-user pricing. That structure is now going away for online services, and Microsoft hasn’t yet said what will replace it.
Will all customers pay the current Level A rate? Will there be a new average price across tiers? It’s too soon to tell. But we’ve seen this move coming. Azure already uses flat pricing, and about a third of Microsoft’s Additional Online Products (AOPs) don’t vary by tier today. Microsoft 365 Copilot, for example, has been priced at $30 per user per month regardless of customer size since its launch.
Why This Matters
If you’re in the middle of an active EA, you’re protected, for now. Pricing for products you’ve already purchased is locked in for the rest of your agreement term.
But that’s where it gets strategic. If there are new online services you’re considering deploying later in your term, it may be worth placing a small order now—even for a single license. That locks in today’s lower, tiered pricing for any future purchases of those new online services during the remainder of your term.
A Quick Example
Let’s say you’re a Level D customer evaluating Power Apps Premium for 5,000 users. Right now, you’d pay $17.60 per user per month—a total of $1,056,000 annually. If Microsoft eliminates tiers and you end up paying the Level A price of $20 per user, your annual cost jumps to $1.2 million.
Even if Microsoft lands on a blended price—say, $18.65—the difference is still $63,000 more per year. It’s certainly less than a Level A price reset, but it’s also not insignificant, especially across multiple products and thousands of users.
Should You Renew Early?
Some Microsoft sellers may suggest you sign your next EA early to “lock in” lower pricing. At this point, NPI advises against this course of action.
Microsoft has not fully explained what the new pricing will be.
It’s unlikely that Microsoft would accommodate a true early renewal where your term start date is moved earlier – in fact, that is discouraged internally. But some sales teams may suggest that you leave the agreement dates intact, but hasten the actual signature of the agreement, suggesting that you can “beat” the price increase by signing now. NPI does not believe it makes sense to trade away precious demand planning and negotiation time in anticipation of unknown price increase. In most cases, rushing to sign early works in Microsoft’s favor—not yours.
What You Should Do Now
This change shouldn’t be a cause for panic—but it does mean you should plan smartly. Here’s what we recommend:
- Review your current EA to identify any Additional Online Products with tiered pricing that you may wish to purchase during the remainder of your EA term.
- Consider placing a small order now to lock in current pricing for those products.
- Ask Microsoft for clarity—how will they determine post-November pricing?
- Resist pressure to sign early until the new model is fully understood.
- Model the potential impact to understand where you’re most at risk of cost increases.
Key Questions You May Be Asking About Microsoft’s Recent Pricing Changes
When does this change take effect?
November 1, 2025.
Which products are affected?
Online services under the EA and MPSA. Not all SKUs will be impacted—some already use flat pricing.
Will pricing go up?
It’s very likely, especially for Level C and D customers. A 3–5% increase is a reasonable expectation based on current tier differences.
Should I place an order now?
Yes—if you’re considering of the addition of new products that still use tiered pricing, even a small initial order can secure your current rate through the end of your EA.
Should I sign my next EA early?
Probably not. Without details from Microsoft, early renewal is a gamble that could reduce your leverage in negotiations.
Final Thoughts
Microsoft’s decision to eliminate price tiers for online services marks a clear shift in its pricing strategy—and one that could impact IT budgets. While the specifics are still unfolding, now is the time to prepare for the change.
Want help evaluating your exposure and options? We can help –
contact us to learn more about our
Microsoft Cost and License Optimization services.
