Microsoft to Discontinue Volume Licensing for Large Customers Starting November

In a significant change to its licensing strategy, Microsoft has announced the elimination of volume licensing options for large enterprise clients, effective November. This decision affects those holding Enterprise Agreements (EA) and Microsoft Products and Services Agreements (MSPA).

As part of an effort to streamline pricing structures and enhance clarity in its offerings, Microsoft has decided to transition all customers to a single pricing tier, referred to as Tier A. Previously, clients benefited from discounts ranging from six to twelve percent based on the number of licenses purchased, categorized into tiers A through D. Under the new structure, all clients will align with the standard list price displayed on Microsoft's website.

While existing contracts will not be immediately impacted, this adjustment will effectively lead to a price increase when clients seek to acquire new services or renew existing agreements. The price adjustment will encompass a variety of Microsoft's online services, including Microsoft 365, Dynamics 365, Windows 365, as well as various security, identity management, and compliance products.

Companies that choose to self-manage their services will not be affected by this change. Nevertheless, Microsoft has been actively encouraging clients to migrate to its cloud services, which have faced scrutiny regarding data privacy. Notably, U.S. government entities and educational institutions will be exempt from this transition, continuing to enjoy their respective pricing structures.

Microsoft partners tasked with communicating these changes to their customers have received a formal announcement from the company. This statement emphasizes the goals of transparency and the unification of sales channels as justifications for the reforms. Additional insights can be found on Microsoft's Learning platform, where the company asserts that the simplified pricing model will enable partners to focus more effectively on addressing the business needs of their clients.