Originally published at Telefonica Tech
Microsoft has confirmed that, starting 1st of January 2025, cloud Enterprise Agreements in direct markets will no longer be eligible for renewal under the existing framework. Affected customers will be notified In January 2025 that their EA renewal will no longer be possible, and Microsoft will guide customers toward the Microsoft Customer Agreement for Enterprise (MCA-E) or towards CSP for customers seeking a value-added and supported experience through a partner.
Key Updates and Considerations:
Not all Enterprise Agreements will be affected. Microsoft have stated that “a small percentage of cloud Enterprise Agreements (EA) in direct markets will no longer be eligible for renewal under the existing EA framework”. While direct-market EAs are transitioning, indirect agreements remain unchanged for now. Deals currently under EA negotiations will be honoured under the existing framework through Q1 2025.
Availability of Software as Subscriptions Under MCA-E From October 1, 2024, customers can purchase software like SQL Server, Windows Server, and System Center as subscriptions via the MCA-E. Microsoft may require customers without strong on-premises software needs to adopt this programme early in 2025.
Microsoft Customer Agreement for Enterprise (MCA-E) The MCA-E will become a recommended programme for customers wishing to have a direct purchasing relationship with Microsoft. Customers should note that MCA-E has a different structure from the traditional EA:
- No tiered pricing or “From SA” availability.
- A completely new agreement that requires close review.
- Reduced operational support from licensing partners, meaning customers may need to navigate the new structure independently.
Cloud Solution Provider (CSP) The Cloud Solution Provider (CSP) programme is emerging as a highly recommended path forward for enterprises looking for flexible, cloud-first licensing. CSP provides several key benefits that align well with modern organisational needs, particularly as businesses increasingly seek adaptable subscription models and streamlined management of cloud services.
Preparing for the Transition: How can Telefónica Tech help?
At Telefónica Tech, we understand that the upcoming end-of-life for Microsoft’s traditional Enterprise Agreement (EA) renewals in 2025 can feel daunting, but we are here to assist in making the transition seamless and strategic. As a leading Microsoft partner, we offer a comprehensive CSP programme that’s specifically designed to support businesses with Microsoft cloud subscriptions and provide ongoing guidance. We can work closely with you to demystify your renewal options and maximise the value of your Microsoft investments.
If you would like to find out more, please contact us for a free of charge Licensing Advisory service to analyse your current Microsoft licensing agreement in preparation for the EA renewal end-of-life.
