The world of Microsoft licensing is evolving once again, and this time the changes are both sweeping and significant for organizations leveraging the Enterprise Agreement (EA), Online Services Premium Agreement (OSPA), and the Microsoft Products and Services Agreement (MPSA). If you’re a business, IT leader, or procurement professional, the upcoming November 2025 update is poised to reshape the way you evaluate, purchase, and optimize your Microsoft Online Services. At Connection, we recognize the challenges and opportunities these changes present. Our Microsoft Licensing Optimization Services are designed to help customers navigate this transition with confidence, clarity, and strategic insight.
Overview of the November 2025 Price Level Changes
Beginning November 1, 2025, Microsoft will standardize cloud services pricing by removing the existing price level discount structure for Online Services products sold through volume licensing programs. All Online Services products across price levels A-D will be set at a single list price, matching that available publicly on Microsoft.com. This update affects purchases of products such as Microsoft 365, Dynamics 365, Windows 365, Azure (which already did not have price level discounts), along with other security, compliance, identity, and management services.
Key Changes:
- Differentiated price levels (A-D) for Online Services in volume licensing agreements will be discontinued.
- Online Services purchased via EA, OSPA (China-specific), and MPSA will adopt a single starting list price, regardless of purchasing channel or previous price level.
Unchanged Aspects:
- Pricing for on-premises software remains unaffected.
- U.S. Government and global Education price lists are excluded from these changes.
- The new pricing applies only upon renewal of agreements or the addition of new Online Services after November 1, 2025.
Customer Impact
This pricing change primarily concerns commercial customers acquiring Online Services through EA, OSPA, and MPSA agreements. Customers with price-protected SKUs may retain their rates until their current enrollment or subscription period ends; however, renewals and new purchases after November 1, 2025 will be subject to the revised pricing.
Connection’s Microsoft Licensing Optimization Services
Guiding You Through Change
Navigating these updates can be complex. Connection’s licensing optimization services are available to assist organizations in understanding the impact of these changes, planning strategies, and optimizing their approach to Microsoft cloud investments.
How Connection Can Help
- Strategic Licensing Assessments: Comprehensive evaluations of current licensing arrangements to identify potential cost optimization and usage improvements. Assistance in determining the effects of new pricing and recommendations to maximize value.
- Agreement Renewal Assistance: Guidance throughout renewal processes under new pricing terms, including analysis of alternative purchasing options and support in evaluating transition strategies.
- Cloud Services Planning: Consultation on cloud adoption strategies that accommodate the unified pricing model, development of roadmaps leveraging Microsoft solutions, and advice on scalability and investment.
- Cost Management and Forecasting: Use of analytical tools to project budget impacts, uncover savings opportunities, and negotiate terms aligned with organizational requirements.
For further details or assistance related to licensing optimization please reach out to your Connection Account Manager or CNXN-XLOSupport@connection.com
