Starting November 1, 2025, Microsoft will introduce a new pricing model that will significantly impact many organizations worldwide. The familiar discount levels B to D in the Enterprise Agreement (EA) and Microsoft Products and Services Agreement (MPSA) will be discontinued.
From that date forward, all customers will pay Level A pricing, which equals the standard list price on Microsoft.com.
This means higher costs for most companies. So, what exactly is changing and how can you prepare?
What is changing in Microsoft licensing?
- Uniform pricing for online services: Solutions such as Microsoft 365, Dynamics 365, Azure and Windows 365 will cost the same, regardless of company size or purchase volume.
- Applies to new contracts and renewals from November 1, 2025.
- On-premises products remain unchanged: SQL Server, Office (perpetual) and other on-premises licenses are not affected.
- Exemptions: At this point, only U.S. government agencies and educational institutions are excluded.
What this means for a 10,000-employee company
Let’s assume your company previously purchased Microsoft 365 at Level C pricing (e.g., $25 per user per month). From November 2025, you will automatically move to Level A pricing (e.g., $28 per user per month).
The additional costs look like this:
- $3 per person/month
- $30,000 per month in total
- $360,000 extra per year
Important: This increase arises without additional usage only due to the change in the price structure.
Why is Microsoft making this change?
Microsoft wants to simplify pricing. By switching to a uniform pricing model, negotiations are to be reduced, processes standardized and prices made more transparent, also in comparison to Cloud Solution Provider (CSP) offers.
What companies should do now
To prepare for the Microsoft pricing change in 2025:
- Review your contract terms well ahead of renewal.
- Calculate the impact on your IT budget.
- Evaluate CSP alternatives for potential cost benefits.
- Engage with Microsoft or your licensing partner early to discuss options.
Even if discounts no longer exist, well-prepared companies are in a stronger negotiation position.
Why license management becomes critical in 2026
With uniform prices, efficiency, not negotiation, will be the biggest cost lever. Every unused or wrongly assigned license directly increases your IT spend.
RixMind Microsoft license assessment
As you prepare for upcoming contract renewals and the Microsoft pricing changes in 2025, it’s essential to know:
- how many licenses you truly need,
- how they are being used,
- and where unnecessary costs are hidden.
With the RixMind Microsoft license assessment, you receive:
- a detailed analysis of your current licensing situation,
- a clear overview of optimization opportunities,
- strategic recommendations to cut costs and prepare for the new pricing model.
Download the Microsoft license assessment one-pager to learn more or get in touch with our experts for a tailored consultation.
Conclusion
The end of discount levels in Microsoft’s EA and MPSA agreements is one of the most significant changes in Microsoft licensing in recent years.
Companies should use the time before their next renewal to plan strategically and ensure they aren’t paying unnecessary costs.
At RixMind, we help organizations optimize their Microsoft and SaaS license spend with proven tools and expertise.
Contact our experts today to discuss how you can prepare for the 2025 Microsoft pricing changes.