Microsoft Enterprise Agreement Renewal Changes: Moving to CSP

Microsoft Enterprise Agreement Renewal Changes: Moving to CSP

From 1st November 2025, Microsoft will introduce significant updates to its licensing model. These Microsoft Enterprise Agreement changes mean any organisation with fewer than 2,400 users will no longer be able to renew under an Enterprise Agreement (EA). Instead, licences must be purchased through the Cloud Solution Provider (CSP) model.

This shift affects organisations across both private and public sectors. Acting early helps avoid unexpected costs and ensures a smooth transition.

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What Do the Microsoft Enterprise Agreement Changes Mean?

The Enterprise Agreement has long been a standard for organisations with larger user numbers. Under the new rules, those below the 2,400-user threshold must transition to CSP.

This is more than a billing update. Some SKUs available under EA/EAS are not offered through CSP, meaning a like-for-like renewal may not be possible. Reviewing your current setup now will safeguard continuity, control costs, and keep licensing compliant.

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    The Value of a Licensing Audit

    We provide a free Microsoft licensing audit to help organisations prepare for these Microsoft Enterprise Agreement changes. The audit reviews current licence usage, highlights overspend, and identifies changes needed under CSP.

    Some organisations discover licences that can be rationalised, immediately cutting costs. Others find that EA-only SKUs must be replaced. In every case, the audit delivers a clear and practical roadmap for renewal.

    CSP Advantages Over EA

    Although the change may seem disruptive, CSP introduces several clear benefits:

    • Monthly billing – replaces large upfront payments and improves cashflow
    • Flexibility – add or remove licences instantly, with the option to mix monthly and annual terms
    • Partner-managed support – more responsive and hands-on than EA/Elevate
    • Cost control – adjust commitments mid-term to avoid paying for unused capacity

    For many organisations, these advantages make CSP a more flexible and efficient approach to Microsoft licensing.

    Data Protection Should Not Be Overlooked

    Licensing is only part of the picture. Microsoft’s built-in data retention is limited, which can put critical information at risk without additional backup. Key retention limits include:

    • Exchange Online – deleted mailboxes recoverable for only 30 days
    • SharePoint & OneDrive – 93 days in the recycle bin, plus 14 days of rolling backups
    • Teams – retention depends on the underlying Exchange or SharePoint services
    • Expired subscriptions – limited access for 90 days, with permanent deletion within 180 days

    Without a backup and recovery strategy, these restrictions can expose organisations to accidental or malicious data loss. As part of our audit, we also review data protection policies, ensuring resilience beyond Microsoft’s default settings.

    Why Work With Us?

    As a Microsoft Solutions Partner, we help organisations simplify complex licensing changes and keep costs under control. Our team has decades of experience in Microsoft technologies, covering licensing, infrastructure, and data protection.

    • Direct access to experts who understand both Microsoft licensing and real-world IT challenges
    • Guidance that balances compliance with cost optimisation
    • Independent advice — if staying direct with Microsoft is best for you, we’ll say so
    • A partner who looks beyond licensing to cover resilience, backup, and cyber security

    Our goal is to provide clear, actionable advice that reduces risk and creates long-term value.

    Contact us today to book your Microsoft licensing audit and create a cost-optimised roadmap for 2026 and beyond.

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