From November 1, 2025, Microsoft will remove volume-based price tiers (Levels B–D) for Online Services under Enterprise Agreements (EA), MPSA, and OSPA.  If you’re a large organisation on an EA, this is a major shift. Here’s what’s happening, why it matters, and how Livingstone can help you navigate the change.

What’s Changing?

Currently, Microsoft offers programmatic pricing discounts for Online Services like Microsoft 365, Dynamics 365, Power Platform, and more. The more you buy, the better your per-unit price.  Level A offers the smallest -if any - discount, while Levels B, C and D get discounts of between 6 and 12% on a sliding scale. 

But from November 2025, this will change. Here's how:

• No matter your level or how much you buy, the published list price will be the same.
• This change affects most direct and indirect commercial and government customers under EA, MPSA, and OSPA.
• Education and U.S. government licensing are not impacted.

Microsoft will release a preview price list in October 2025 showing the new structure.

What this means for EA customers

For high-volume buyers, the removal of programmatic tiered discounts is likely to mean higher costs at renewal, unless those increases can be offset elsewhere in your agreement.

Negotiation levers will shift:

• • Volume can no longer guarantee better rates on Online Services.
  • Strategic bundling, deployment optimisation, consumption and timing your renewals will become even more critical.
  • In some cases, alternative licensing channels (like CSP) may become more attractive.

Why Microsoft is doing this

Microsoft says the goal is to simplify pricing and improve transparency. In reality, it’s part of a broader trend: moving large customers onto standardised list pricing and away from custom discount structures, especially for cloud-based services.

How Livingstone helps you respond

Livingstone’s Microsoft Optimisation & Negotiation Service is designed for exactly this kind of change.

We work with large organisations to:

• Model the impact of pricing changes using your actual licensing and usage data.
• Identify alternative cost-saving levers now that volume discounts are going.
• Optimise licensing to eliminate waste before renewal.
• Negotiate renewal terms to protect your budget, leveraging our market benchmarks and vendor insights.
• Advise on timing, whether to lock in favourable terms before November 2025, or wait to use the new rules to your advantage.

Key actions to take now and going forward

1. Review your EA renewal date – If it’s close to November 2025, timing could be critical. Consider bringing your renewal date forward if it falls after 1 November. 
2. Assess your Customer Price Sheet (CPS) - Your CPS should actively support your IT strategy from day one to the end of your agreement. If future-use products aren’t yet included, Livingstone can help you align your CPS and agreement structure to match your long-term technology goals, seamlessly and strategically.
3. Audit your usage – With volume licensing discounts going, it's more important than ever to constantly monitor your usage, cutting unused or under-used licenses to free up budget. Consider Livingstone's Microsoft Managed Service
4. Engage early – The earlier you start renewal planning, the more options you’ll have. Livingstone offers contract optimisation and negotiaton support to secure the best deal for your strategic, future needs
5. Ask for a Livingstone impact assessment – We’ll run the numbers based on your current agreement and forecast the cost changes.
   
   

Final word

The removal of tiered EA discounts is more than just a pricing tweak. It marks a significant change in Microsoft's commercial strategy and affects how large organisations should approach Microsoft negotiations. By acting early and with the right data, you can avoid unexpected cost hikes and ensure your Microsoft agreement delivers maximum value.

Get in touch and request a call with one of our Microsoft licensing experts, particularly if you have an imminent renewal coming up.

Learn more

1. Watch the on demand webinar on how to manage Microsoft on an ongoing basis: Scaling the Microsoft licensing mountain
2. Watch the  on demand webinar on how to plan for a successful Microsoft negotiation
3. Get our ebook: The Altitude Guide, with guidance on every step of the Microsoft licensing journey
4. Get the ebook: Insider secrets to win the Microsoft Contract Game