Enough doom and gloom about Microsoft’s so-called “pricing simplification.” Let’s focus on what really matters: how to protect your budget and prepare for renewal. Because ignoring this change won’t stop the price hike—and it definitely won’t stop your renewal from showing up. If you want to stay ahead of the curve, understanding the Microsoft licensing strategy 2025 is your first step toward smarter negotiations and optimized spend.
Microsoft’s elimination of EA volume discounts is already reshaping the licensing landscape. If you want to walk into negotiations with leverage instead of excuses, we put together a list of five-step playbook down below.
Five-step Playbook to Win Microsoft Licensing Negotiations
Step 1: Review Your Renewal Timeline
Timing is everything. If you wait until the final 90 days before your Enterprise Agreement (EA) renews, you’re already behind. Microsoft knows when you’re cornered—and they’ll use it.
Action: Pull your current contract now.
Identify your renewal date and build a timeline that gives you room to evaluate options, model costs, and prepare your negotiation strategy. Early planning is your biggest advantage—and your biggest risk if ignored.
Step 2: Run the Numbers (For Real This Time)
It’s time to face the math. Apply Microsoft’s new pricing baseline to your current spend:
Action: Calculate your new baseline costs.
This isn’t worst-case—it’s your starting point. If the increase makes you flinch, good. That discomfort is the motivation you need to take this seriously and act early.
Step 3: Optimize Before You Negotiate
Too many organizations skip this step—and pay for it. Microsoft benefits when you carry unused licenses, overlapping tools, and underutilized services into renewal. It inflates your baseline and weakens your position.
Action: Audit your license footprint.
Identify what’s actually being used, what’s redundant, and what can be trimmed. This cleanup is your strategic edge. As we said in Part 2, a smart strategy beats a legacy discount every time.
Step 4: Don’t Ignore CSP
With EA discounts gone, the Cloud Solution Provider (CSP) model is no longer second-tier. In fact, CSPs now offer compelling alternatives—especially for mid-sized organizations.
Action: Compare EA vs. CSP.
CSPs often provide monthly billing, flexible seat counts, multi-year commitments without EA baggage, and better partner support. For many, CSP is no longer “maybe someday”—it’s “why not now?”
Step 5: Bring in Backup
Microsoft negotiates these deals every day. They have playbooks, data, and incentives on their side. If you walk in alone, hoping to wing it, you’re exactly the kind of customer they hope for.
Action: Get expert help.
Bring in someone who knows Microsoft’s tactics, can model scenarios, and isn’t afraid to challenge the “best offer.” Spoiler: it never is.
The Bottom Line: Strategy or Surprise
Microsoft just blew up automatic EA discounts—and it’s going to cost you unless you prepare. Here’s your checklist:
- Know your renewal date
- Run the math
- Clean up your license footprint
- Compare EA against CSP
- Get help if you need it
The companies that do this work now will walk into November 2025 with a plan. The ones that don’t? They’ll walk in with a checkbook and a headache.
Missed Part 1 or 2? Catch up on the full series to understand what changed, why it happened, and how to protect your IT budget from Microsoft’s pricing overhaul.
Need help building your strategy or negotiating your renewal?
Schedule a free consultation with an expert and get tailored guidance before your next renewal.