On August 12, 2025, Microsoft announced the removal of tiered pricing (Levels A–D) for Online Services under the EA, OSPA, and MPSA programs. From November 1, 2025, all affected customers will pay a single “standard” price based on Microsoft’s central online price list. You can read the full announcement here.

While Microsoft is positioning this as a move towards greater transparency and simplicity, it also means that the deeper discounts many EA customers currently enjoy will no longer apply.It’s important to note that on-premises software pricing will remain the same, and U.S. Government and Education pricing is excluded from this change.‍

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The Impact on Your Business

For organisations on EA tiers B-D, this change is more than a minor adjustment; itremoves one of the most valuable pricing levers in Microsoft negotiations and will directly increase long-term contract costs.

Level B: +6% price increase

Level C: +9% price increase

Level D: +12% price increase

Renewals after November 1st risk locking in these higher prices for the full 3-year term. Reduced pricing levers mean less ability to negotiate overall cost

Key Products Affected: M365 E5 and all E,F and EMS plans, Dynamics 365, Windows 365 and Security solutions.

Exclusions: On-premises software, U.S. Government, and Education pricing remain unchanged.
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If your organization benefits from higher-tier EA pricing, you’re likely looking at an unavoidable increase in costs once the new model takes effect. And because the change impacts renewals after November 1 2025, waiting until your usual renewal date could mean locking in those higher prices sooner than you’d like.

How to Prepare for the Update

1. Quantify the Risk and Optimize Your Estate

Benchmark your current tier pricing against Microsoft’s central price list and calculate the total cost increase if you lose Level B, C, or D discounts. Use this as an opportunity to audit actual license usage, remove underutilized premium licenses, and align bundles with consumption. This will lower the risk of cost increase.

2. Act Before the Deadline

By renewing before November 1, you can secure your current pricing for the length of your new term, giving you more time to prepare for the change. It’s not just about delaying a cost increase—it’s about using the opportunity to review your licensing strategy, renegotiate terms, and make informed decisions before your leverage diminishes.

3. Speak to Independent Advisors

An independent advisor can audit your licences, eliminate waste, and benchmark your deal against real market data to give you the leverage Microsoft will never put on the table. They can also advise on the best strategies if an early renewal is not possible, ensuring you still minimize the cost impact, or support you in early renewal negotiations to avoid locking in a 6–12% price hike by acting before November 1 .

Stay Ahead with 2Data

At 2Data, our Microsoft team  specialize in helping organizations turn licensing changes into opportunities for smarter procurement. Here’s how we’ll support you:

• Impact Assessment: We’ll analyze your current agreements to show exactly how the pricing change will affect your costs.
• Renewal Strategy: We’ll guide you through early renewal options, ensuring you lock in the best terms possible.
• Optimization Planning: We’ll help you restructure licensing to get the most value from your investment, without overpaying for unused capacity.
• Negotiation Support: We’ll leverage our industry knowledge to secure favourable commercial terms while you still have negotiating power.

With less than three months before the update takes effect, early action can make the difference between a smooth, cost-effective transition and an unwelcome spike in licensing spend. Contact 2Data today at info@2-data.com to arrange a review of your Microsoft licensing position. We’ll ensure you’re prepared, protected, and positioned for the best possible outcome before these changes go live.