Significant shifts in technology licensing are rare, but when they occur, they present a critical decision point for business leaders. Microsoft’s recent changes to its Enterprise Agreement (EA) program, which took effect on November 1, 2025, represent one such moment. For mid-market organizations, this is not merely an administrative update; it’s a fundamental change that is now impacting budgets, operations, and strategic planning.
While change often brings uncertainty, it also creates opportunity. Leaders who proactively address this disruption can move beyond a simple renewal and establish a more agile, cost-effective, and supportive cloud partnership. This guide offers a clear path forward, helping you understand the changes, evaluate your options, and turn this transition into a lasting strategic advantage.
For years, the EA has been the go-to licensing model for organizations seeking predictable pricing and simplified procurement of Microsoft software and services. However, Microsoft is now steering customers toward more modern, flexible frameworks, such as the Cloud Solution Provider (CSP) program. This strategic pivot brings several key changes that directly affect mid-market companies, particularly those with 500 to 5,000 users.
Here’s a summary of what to expect:
Faced with these changes, the default reaction might be to seek the path of least resistance—perhaps a direct renewal with Microsoft under a new agreement type if available. However, this seemingly simple approach carries substantial risks that can hinder your organization’s growth and financial health.
Continuing a direct, transactional licensing model means accepting a new reality where you pay more for less. You may face price increases without the corresponding benefits of volume discounts or the level of support you previously had. More importantly, it means forgoing the opportunity to build a more strategic and value-driven relationship with your cloud provider. You remain a customer in a transactional loop rather than a partner in a collaborative ecosystem. This approach can leave your team underserved, your budget strained, and your cloud strategy misaligned with your business objectives.
The CSP program has evolved from a simple licensing resale model into a comprehensive framework for cloud service delivery and management. For mid-market organizations navigating the new EA landscape, a partnership with the right CSP is now the most strategically sound path forward.
Unlike a direct agreement, which focuses solely on licensing, a CSP partnership integrates licensing, managed services, expert support, and strategic guidance into a single relationship. It transforms your cloud investment from a fixed cost center into a dynamic, optimized engine for business growth. You gain the flexibility to scale resources up or down, the expertise to govern costs effectively, and the support to ensure your environment is secure and high performing.
Not all CSPs are created equally. Many resell licenses, replicating the transactional relationship you’re trying to move away from. A true strategic partner provides tangible value far beyond the license itself. As you evaluate potential partners, use this framework to identify one that will empower your organization.
With the Microsoft EA changes now in effect, organizations navigating this shift can anticipate several likely benefits by partnering with a strategic CSP provider. Here are forward-looking examples of what mid-market companies may experience:
A manufacturing firm with roughly 1,200 users faces projected renewal increases of 6–12%. By proactively transitioning to a CSP program, they may be able to avoid these cost escalations. Through license optimization and proactive cost governance, such organizations could realize net savings compared to the new EA terms. Simplified Net-30 invoicing and detailed usage reporting may further improve financial planning and forecasting.
A tech firm with a rapidly expanding workforce finds that legacy EA terms are too rigid for dynamic scaling. Migrating to a CSP model could provide flexible licensing, allowing monthly adjustments to match project demands and staff changes. With guidance from a dedicated Technical Account Manager (TAM), the company is well-positioned to architect a more scalable and efficient Azure environment, aligning spend with actual usage and accelerating deployment timelines.
A healthcare organization with 2,000 seats anticipates the need for higher-touch support and enhanced compliance as the EA model is phased out. Moving to a CSP program could unlock 24×7 expert assistance, a dedicated TAM, and managed operations, freeing internal IT to focus on strategic initiatives. Enhanced security and compliance services provide additional benefits for regulatory environments.
These scenarios illustrate the potential outcomes: cost control and predictability, operational agility, and more substantial support and strategy—empowering organizations to turn disruption into advantage as the Microsoft EA environment evolves.
A successful transition is built on a clear, collaborative plan. At Redapt, we ensure that moving from the legacy EA to our CSP program is seamless and value-driven from day one, now that the EA changes are in effect.
We begin with a comprehensive, no-cost assessment of your current EA, including new policy, license usage, and business objectives. Our team collaborates with yours to develop a transition roadmap, identifying immediate cost-saving opportunities and ensuring alignment with your technical and financial requirements.
Our experts manage the technical heavy lifting of the transition, from license mapping to service cut-over. We ensure zero disruption to your end-users and provide clear documentation and training for your team. During this phase, your dedicated TAM is introduced to begin building a long-term partnership.
Once you are fully onboarded, we shift focus to continuous improvement. We implement cost governance tools, schedule your first QBR, and begin providing proactive recommendations to optimize your environment. You start to see the tangible benefits of a true cloud partnership.
The end of the traditional Microsoft EA is not a challenge to be feared, but an opportunity to be seized. Now is the time to move from a restrictive, transactional licensing agreement to a flexible, supportive, and strategic cloud partnership that actively contributes to your business success. By selecting a partner that offers in-depth expertise, enterprise-grade support, and a dedication to your long-term objectives, you can achieve immediate savings and establish a stronger foundation for future innovation.
Ready to explore how a strategic CSP partnership can benefit your organization?
Schedule your free, no-obligation CSP assessment with a Redapt expert today. Let’s build something better, together.