Microsoft’s new M365 Enterprise Agreement (EA) licensing model is now in effect.
Microsoft has updated its licensing model, phasing out volume discounts and moving to standardized list pricing for online services. For some organizations, this could mean an increase in Microsoft 365 costs.
We’re ready to help you navigate the pricing changes to optimize your license spend and control costs. Please note, this change does not affect any CSP agreements currently in place.
This could mean a 7–26% increase in Microsoft 365
- Midmarket firms with 1,000 users could see $27K+ annual increases
- Large enterprises with 10,000 users could face $1.4M more per year
For many organizations, the changes may result in higher costs under their next EA renewal. However, the impact will vary depending on license type, term length and deployment model.
These updates apply only to Microsoft Enterprise Agreements and do not affect any Cloud Solution Provider (CSP) agreements you may currently have in place.
Rackspace Technology can help you evaluate how Microsoft’s pricing updates affect your organization and identify opportunities to optimize your Microsoft 365 environment. Our experts work with you to right-size licenses, evaluate migration paths and ensure your organization is prepared for the transition with minimal disruption.
Read our blog "Microsoft's 2025 Licensing Evolution: Transform Change into Opportunity" for more details.
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