Microsoft latest Licensing updates

⚠️ STOP: Is your Microsoft Licensing Renewal About to Cost You MORE?

Effective November 1st, Microsoft has eliminated volume discounts (waterfall pricing) for Online Services in Enterprise Agreements (EAs) and MPSA. Plus, the mandatory Teams unbundling is now global.

If your team doesn't fully understand these changes, your next renewal could come with a nasty price surprise and compliance headaches.

What your orgnaization can do on urgent basis?

1. License Optimization is King 👑: Audit all seats. Before renewal, reclaim every unused or over-assigned M365 license. Moving users from expensive E5 to E3 (if they don't use premium features) is the fastest way to instantly offset the price increase from lost volume discounts (which can be up to 12%!).

2. Define Your Teams Strategy 👥: Don't just renew the same bundle!

Audit Usage: Identify users who actually rely on Teams vs. a third-party collaboration tool.

Buy Smart: Purchase the new, cheaper M365 (No Teams) suite for those who don't need it. For those who do, you must buy the M365 (No Teams) suite PLUS the separate Teams Standalone SKU.

3. Pivot to Negotiation/CSP 🤝: Since automatic bulk discounts are gone, negotiate custom price protection based on new commitments (like adopting Copilot or moving more to Azure). Alternatively, evaluate moving to a Cloud Solution Provider (CSP) agreement for greater month-to-month subscription flexibility.