M365 - License Optimization Center

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. 

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. 

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. 

Microsoft’s licensing landscape for Microsoft 365 is evolving rapidly, with new agreements like the Microsoft Customer Agreement Enterprise (MCA-E) and a shift toward cloud-based, direct models. For IT and procurement professionals, these changes present opportunities to optimize costs but also risks of overspending or non-compliance.