September 26, 2025
Microsoft has formally announced that, effective November 1, 2025, it will implement a structural change to its pricing model for Online Services offered through volume licensing agreements. This change will apply to agreements such as the Enterprise Agreement (EA) and the Microsoft Products and Services Agreement (MPSA).
Under the revised model, Microsoft will eliminate the previously tiered price level discounts (Levels A through D) and introduce a unified starting price for all Online Services. The intent of this adjustment is to ensure pricing consistency across all purchasing channels, thereby aligning the starting price of Microsoft cloud services - regardless of the licensing vehicle used - with the Level A list price, which corresponds to the pricing published on the Microsoft website.
Customers currently benefiting from Level B, C, or D pricing under EA or MPSA agreements will be most affected, as their SKU pricing will be adjusted to match the Level A rate. These pricing changes will take effect either at the time of the customer’s next agreement renewal or upon the purchase of new Online Services not already listed on their Customer Price Sheet, if such purchases occur after November 1, 2025.
It is important to note that this pricing update pertains exclusively to Microsoft Online Services. Affected products include, but are not limited to, Microsoft 365, Dynamics 365, and offerings related to Security, Compliance, Identity, and Management. This change does not apply to Microsoft’s on-premises software products.
We strongly encourage customers to:
- Review their current licensing agreements and pricing levels.
- Assess the potential impact of the pricing change on future renewals and purchases.
- Engage with a knowledgeable Microsoft Licensing Specialist to discuss strategic options and ensure alignment with budgetary planning.
For further assistance or to schedule a consultation, please contact Long View Systems at [email protected].
Subscribe to our newsletter for the latest updates.