Microsoft's pricing update: How it affects you and what to do next

This blog was originally published by Softchoice, a World Wide Technology co.

Microsoft has announced a significant update to its Online Services pricing, set to take effect on November 1, 2025.

This change will flatten the enterprise waterfall discounts (Levels A–D) for Microsoft Online Services purchased through volume licensing agreements (EA, MPSA, OSPA) to the list price, which is the same as the Microsoft website price. This move aims to create a level playing field for customers choosing how to buy Microsoft Online Services and shifts the focus from programmatic discounts to the negotiated final price for each customer.

What these changes mean for our customers

The end of tier-based programmatic discounts could mean a shift in how many organizations approach their licensing strategy. This change will result in a consistent starting price for cloud services, regardless of the purchasing vehicle a customer chooses.

The starting price for Online Services products being aligned across volume licensing programs and the Microsoft Customer Agreement (MCA) makes it easier for customers to evaluate and select the agreement that will best power their future growth. At the same time, the removal of programmatic discounts makes it even more important to have clear visibility into current licensing entitlements, usage, renewal timelines and plans to adopt new or emerging Microsoft technologies.

Practical implications and immediate actions

The change applies at your next renewal or when purchasing new Online Services not already listed on your Customer Price Sheet. Prices will align with those listed on Microsoft.com, eliminating traditional volume-based discounts. This impacts all commercial and most government customers purchasing Online Services through the Enterprise Agreement's Enterprise Enrollment, Enterprise Subscription Enrollment, and Server and Cloud Enrollment, through the MPSA and the OSPA.

Customers purchasing through the U.S. Government price lists and the Agreement for Online Services - Government (AOS-G) program are not impacted by this change. Also, Education customers are not impacted by this change. For larger organizations, the potential for significant cost impact makes proactive planning essential.

Recommended next steps

In response to the change, we recommend you:

Act now, before your next renewal

Your renewal or next major license purchase will trigger this pricing change. Acting now gives you more options, better leverage and a clearer view of the road ahead.

Assess and optimize your Microsoft licensing strategy

With the right insight and planning, you can minimize cost impacts, improve license alignment and set yourself up for better value over the long term. Our Microsoft licensing and agreement management expertise goes beyond explaining the change; we deliver data-driven analysis of your current environment, identify unused or redundant licenses, and uncover optimization opportunities that protect both cost and flexibility.

Engage early with WWT and Softchoice as your strategic partners

Reaching out to WWT and Softchoice early can help you get through this change with confidence. Together, we bring decades of Microsoft licensing experience, deep publisher relationships, and proven methodologies that ensure you get clarity and control, even as licensing models evolve. We work with you to identify optimization opportunities, align licensing with your organization's goals and prepare for future publisher changes.

Your WWT or Softchoice account team can bring in our Microsoft experts for a deeper, personalized review of your licensing strategy and renewal plans.