Microsoft’s licensing landscape has been evolving over years. The traditional Enterprise Agreement (EA), once the gold standard for large organizations, is now just one of several routes to access Microsoft’s products and services. With the rise of the Cloud Solution Provider (CSP) model and the relatively newer Microsoft Customer Agreement – Enterprise (MCA-E) motion, customers are faced with new decisions.
What’s driving the shift? And which model delivers the best value for your organization?
Let’s break it down.
EA vs CSP vs MCA-E: What’s the Difference?
|
Model |
Enterprise Agreement (EA) |
Cloud Solution Provider (CSP) |
Microsoft Customer Agreement – Enterprise (MCA-E) |
|
Who it’s for |
Typically 500+ users |
All org sizes |
Larger, cloud-first orgs buying direct from Microsoft |
|
How you buy |
Through Microsoft Licensing Solution Partners (LSPs) |
Through Microsoft resellers (CSP partners) |
Direct from Microsoft |
|
Commitment |
3-year contract |
Monthly, annual or 3-year commit |
3-year commit |
|
Flexibility |
Annual true-up |
Dynamic monthly changes |
Annualised (can only reduce at anniversary) |
|
Support model |
Historically value-added via reseller rebates (now reduced) |
Strong partner-led support, often better than EA |
Limited Microsoft support unless you pay extra |
|
Pricing |
Volume discounts |
Standardised pricing, less volume-driven |
Negotiated pricing (but often higher than EA) |
|
Admin model |
EA Portal + Volume Licensing Service Centre |
Partner-managed |
Azure/Microsoft 365 Admin Portals |
Why Are Organizations Shifting?
In short, because the support burden has moved onto them.
In the EA model, Microsoft previously incentivized resellers with rebates to provide hands-on support, from optimization and licensing advice to ongoing reviews. Microsoft has largely dismantled that rebate model, removing much of the added value from EA.
“EA customers are now taking on the burden of accuracy because Microsoft no longer funds resellers or others to do it for them,” says Gareth Redshaw, Livingstone
In contrast, CSP partners are now heavily incentivized to provide value-added support. Rebates are generous, and CSPs often include onboarding, usage reviews, and admin help, even in their standard offerings. Enhanced support tiers are also available for those who need more.
MCA-E, meanwhile, removes the partner altogether, offering a direct commercial relationship with Microsoft. This also means that minimal support is included, and you will incur additional charges for help unless you have the internal capability to manage everything yourself.
What About Cost and Flexibility?
Cost Predictability
- EA and MCA-E both offer 3-year pricing locks, great for budgeting.
- CSP now also supports 3-year commitments, contrary to common misconceptions. This means you can lock in pricing and still retain a level of flexibility.
Flexibility
- CSP allows monthly changes, ideal if your headcount fluctuates or you operate in an agile model.
- EA and MCA-E only allow reductions at anniversary (or term end).
Key Considerations
|
Factor |
Best Option |
|
You want lowest unit pricing on a stable estate |
EA (if well negotiated) |
|
You need agility and monthly true-down |
CSP |
|
You want direct control and already work closely with Microsoft |
MCA-E |
|
You rely on partner support for admin/licensing |
CSP |
|
You have internal SAM expertise and can self-manage |
MCA-E or EA (with caveats) |
|
You want one global contract for a complex, multi-national org |
EA or MCA-E |
Conclusion: Don't go it alone
Microsoft has built licensing options to support its cloud-first vision. But the trade-offs between EA, CSP and MCA-E can trip up even seasoned IT teams.
The real question isn’t just “Which model?”; It’s “How will we manage it?”
Without expert oversight, even the right licensing model can become an expensive problem. Livingstone helps organizations assess, optimize, and manage Microsoft licensing across all routes. Whether you're weighing up CSP, EA, or MCA-E, our experts can give you an independent view. Our dedicated managed service can make all the difference.
We help you:
- Choose the right model based on your current and future needs
- Stay continuously compliant and optimized
- Avoid surprises at renewal or audit time
- Reduce licensing waste and hidden spend
Need clarity on what’s right for you?
- Register for our webinar: Scaling the Microsoft licensing mountain
- Get our ebook: The Altitude Guide, with guidance on every step of the Microsoft licensing journey
- Explore our Microsoft Managed Service
