M365 - License Optimization Center

Renewing your Microsoft Enterprise Agreement (EA) is not just a licensing task, it’s a multimillion-dollar business decision that can shape your IT roadmap, budget posture, and cloud strategy for the next three years.  With Microsoft tightening true-down flexibility under the Microsoft Customer Agreement (MCA) model and evolving discount behavior tied to its fiscal year, the difference between a routine renewal and a strategic one can be six or seven figures in savings. This model has further complicated renewals, altering discount structures, cost reporting, and Software Assurance (SA) terms. 

When negotiating a Microsoft Enterprise Agreement (EA), most procurement and IT leaders focus on discounts and license flexibility. But for Legal and Compliance teams, the real risk lies in the contract language itself. The clauses you negotiate today determine how much protection, flexibility, and control your organization has for the next three years or longer. 

Microsoft 365 and Azure licensing renewals are among the most high-stakes negotiations that IT and procurement teams face. A poorly timed or unoptimized renewal can lock your organization into three more years of overspend, redundant features, or wasted cloud commitments. While EA terms are typically three years, MCA/CSP commitments and true-up timelines differ. Guidance below applies broadly, with notes where EA/MCA/CSP vary.  

Renewing a Microsoft Enterprise Agreement (EA) is one of the most significant technology purchasing events for organizations. With stakes running into the millions, the way IT and Procurement teams collaborate can make or break the outcome. Too often, companies fall into the trap of working in silos, resulting in over-licensing, wasted spending, and inflexible commitments that weigh on budgets for years. In this blog, we’ll explore how Procurement and IT collaboration, during EA renewals, can prevent overspending and ensure every dollar delivers value. 

When your Microsoft agreement is up for renewal, you face more than just a contract choice. You’re making a strategic decision that affects cost allocation, reporting, flexibility, and your cloud roadmap for the next 3+ years. 

Beginning November 1, 2025, Microsoft will introduce a significant update to its commercial pricing strategy in what Microsoft calls its largest Microsoft Online Services pricing update since the introduction of single starting prices in 2023. This change will directly impact how organizations budget, renew, and negotiate Enterprise Agreements. 

Renewing your Microsoft Enterprise Agreement (EA) used to be a fairly predictable process. However, As ofJan 2025, Microsoft is actively forcing an EA transition to MCA. With the introduction of the Microsoft Customer Agreement (MCA) and ongoing changes to how licenses, Azure spend, and reporting are handled, the stakes are much higher. A rushed or incomplete review can lock your organization into unnecessary costs, eliminate true-down flexibility, and make future budgeting a nightmare. 

As Microsoft continues evolving its cloud-first ecosystem, many enterprise customers are reevaluating the value of Microsoft Unified Support compared to its predecessor, Premier Support. Once a cornerstone for enterprise IT support, Microsoft Premier Support was phased out in favor of a more standardized, and often criticized, Unified Support model.

As an IT FinOps Consulting Leader working with enterprises of all sizes across diverse industries, I’vewitnessed firsthand the transformative power of effective financial operations (FinOps) and cloud cost management. These disciplines are no longer optional but critical for organizations aiming to optimize their cloud investments while maintaining agility and innovation. However, a lesser-discussed but equally important aspect of cost optimization is addressing duplicative technologies—tools like Zoom or GoToWebinar that overlap with capabilities already available through solutions like Microsoft Teams. In this blog, I will explore what FinOps and cloud cost management entail, why they matter, and why reviewing redundant technologies is a strategic imperative for cost-conscious enterprises. 

Once a significant component of Microsoft’s enterprise agreements, Software Assurance (SA) has steadily declined in value. Microsoft Software Assurance (SA)has long been marketed as a value-added benefit for enterprise customers, offering features like free upgrades, training vouchers, support services, and compliance flexibility. However, over the past several years, Software Assurance has undergone a significant transformation—one that is leaving many organizations questioning its current value.