Microsoft is removing discounting on Online Services products purchased through its volume licensing programs, starting November 1, 2025.
Its Online Services portfolio includes Microsoft 365, Azure, Dynamics 365, Power, and other specialized solutions, such as Microsoft Defender and GitHub.
Currently, businesses can secure volume licenses for many of these online services at various price points, across Price Levels A–D. These levels vary by region and customer category.
However, the move means that every Online Service – sold under an Enterprise Agreement (EA) or a Products and Services Agreement (MPSA) – has one consistent price across each tier. That price will be available on Microsoft’s website.
As such, Microsoft limits some customers, renewing after October 31, 2025, from securing the same discounts as in their previous contracts.
That said, the standardized price could be lower than what some customers currently pay.
Moreover, while Microsoft customers may not be able to secure license cost discounts, they could still seek concessions on multi-year terms and value-added services.
Alongside EA and MPSA agreements, the move will extend to include the Online Services Premium Agreement (OSPA) for China.
However, Microsoft stressed that there will be no change to on-premise software costs, and that U.S. Government and worldwide Education price lists won’t be affected.
The tech giant announced this on its website. It wrote:
This update builds on the consistent pricing model already in place for services like Azure and reflects our ongoing commitment to greater transparency and alignment across all purchasing channels.
That transparency and alignment has several advantages. It reduces regional price swings, makes costs more predictable for multinational customers, and simplifies partner selling.
Additionally, it builds on the pricing model already established for services like Azure.
However, the possibility of price hikes for many global businesses seems likely.
As such, all customers with volume licensing should contact their account manager to discuss the potential for a significant skew in pricing. Microsoft itself suggests this, noting:
Microsoft recommends scheduling time with your account team or your partner of record to review these changes and assess any upcoming renewals or new Online Services purchases.
If the move does result in widespread price rises, Microsoft does, however, risk this being interpreted as a move to recover operating costs on its AI services and increased cloud expenditure.