The Enterprise Agreement is the classic Microsoft agreement for large organizations. It is signed directly with Microsoft or through an authorized reseller and runs for at least three years. Microsoft names organizations with 500 or more users or devices as the target group.
How does the Enterprise Agreement work?
- Term: The agreement commits for at least three years. Prices and conditions are agreed at the start.
- Adjusting during the term: Users, devices, products and services can be added during the term without individual purchase orders. The actual inventory is reconciled once a year (true-up).
- One agreement for everything: On-premises software, Microsoft 365 and services in Microsoft Azure run under the same agreement.
An example: a company with more than 500 workplaces licenses Microsoft 365 E3 for everyone, adds security features for the IT department and buys Azure services under the same agreement. New employees are added continuously and billed at the annual true-up. The price for this simplicity is the commitment over the entire term.
Unlike the MPSA, the Enterprise Agreement is a fixed commitment over its term. Unlike Microsoft CSP, the organization does not buy through a partner with separate terms for each subscription.
What changed on 1 November 2025?
Microsoft harmonized prices for online services in the Enterprise Agreement and the MPSA. At renewal or for new purchases of online services, a single price applies across price levels A to D, aligned with the prices on microsoft.com. Nothing changes for software installed on premises.
Anyone who stayed in the Enterprise Agreement for the volume discounts on Microsoft 365 loses this advantage at the next renewal. The decision then depends mainly on term, flexibility and administrative effort.
Enterprise Agreement and MCA-E
Microsoft increasingly offers large customers the Microsoft Customer Agreement for Enterprise (MCA-E). This is also a direct agreement with Microsoft. When a renewal is coming up, it is therefore worth comparing three routes: renewing the Enterprise Agreement, moving to the MCA-E, or buying through CSP under the rules of the New Commerce Experience.
What companies should keep in mind
- Keep the renewal date in view early, because the pricing change only takes effect then.
- Review the inventory per product: which licenses are used, which are only paid for?
- Assess license packages per user group, for example whether Microsoft 365 E5 is needed for everyone or only for certain roles.
- Consider on-premises licenses and Software Assurance separately, because price levels still apply there.
Enterprise Agreement or CSP with TOMORIS
The guide CSP or Enterprise Agreement compares both routes. Advice on and provisioning of licenses is described on the page Microsoft licensing.