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A Guide to Microsoft's Enterprise Agreement (EA) Licencing Changes

Posted 10th January 2025

A Guide to Microsoft’s Enterprise Agreement (EA) Licencing Changes 

From January 2025, Microsoft is implementing significant changes to its Enterprise Agreement (EA) licencing. These changes are designed to streamline the licencing process and better support small and midsize customers. Here’s what you need to know about the upcoming changes, who they affect, how to plan your transition and why they could be beneficial for your organisation. 

What’s changing? 

Starting January 2025, some direct market cloud Enterprise Agreements (EAs) will no longer be eligible for renewal under the current EA framework. This means that affected organisations will need to transition to alternative licencing programs, such as the Cloud Solution Provider (CSP) program or the Microsoft Customer Agreement for Enterprise (MCA-E). 

What are the key dates?  

  • January 2025: Microsoft will begin notifying affected customers about the changes to their EA licencing. This marks the start of the transition period. 
  • Throughout 2025: Organisations will need to plan and execute their transition to either the Cloud Solution Provider (CSP) program or the Microsoft Customer Agreement for Enterprise (MCA-E). It’s important to start early to avoid any last-minute issues. 
  • End of 2025: Aim to complete the transition by the end of 2025 to ensure compliance and avoid any disruptions to your licencing agreements. 

BCN can help build a roadmap and timing plan to ensure a seamless transition within these timelines.  

Who does it affect? 

The changes primarily impact small and midsize customers (SMC) in the Level A tier, generally those with up to 2,400 users. These organisations will need to move to either the CSP program or adopt the MCA-E. Microsoft will begin notifying affected customers at the start of 2025, providing guidance and support to help them transition smoothly. 

How to know if you’re affected by Microsoft’s EA licencing changes 

Microsoft will begin notifying affected customers at the start of 2025. Here’s how you can determine if your organisation is impacted: 

  • Notification from Microsoft: Microsoft will send direct communications to organisations that are affected by the changes. This will include detailed information about the transition process and the steps you need to take. 
  • Review Your EA: If your organisation is in the Level A tier (generally up to 2,400 users), you are likely to be affected. Reviewing your current Enterprise Agreement can provide clarity on whether you fall into this category. 
  • Contact BCN: BCN are a Managed Service Provider (MSP) and can provide personalised guidance. Wean help you understand how the changes impact your specific situation.  

 

Check your licence with a free Microsoft licence health check

With the recent updates in EA licencing, it’s the perfect time to evaluate your current setup. Our free licencing assessment is designed to help you navigate these changes and make the most of your Microsoft investment. 

Here’s what our experts will do: 

  • Assess Your Current Licencing: Gain clarity on your existing setup and identify opportunities for improvement. 
  • Evaluate Migration Needs: Determine which licencing model is right for your organisation. 
  • Uncover Cost Savings: Discover potential savings by optimising your licencing strategy. 
  • Tailor Recommendations: Receive expert guidance with solutions customised to maximise your ROI. 
  • Identify Hidden Value: Review underutilised tools and features already included in your Microsoft license. 

Contact us today to schedule your free licencing health check and start maximising the value of your Microsoft investment. 

Considerations for organisations when transitioning from an EA licence 

  1. Transition Planning: Organisations need to plan their transition carefully to ensure minimal disruption. This involves understanding the new licencing models, evaluating current and future needs, and aligning them with the new options available. 
  2. Cost Implications: It’s essential to assess the potential cost implications of moving to the CSP program or MCA-E. While some organisations might find the new models more cost-effective, others may need to adjust their budgets accordingly. 
  3. Support and Resources: Leverage the support and resources provided by Microsoft and your Managed Service Provider (MSP) to navigate the transition. This includes training, documentation, and personalised assistance to ensure a smooth shift. 

Transition incentives: Funding support available from Microsoft  

Microsoft is providing funding support to help organisations offset the costs associated with transitioning to the Cloud Solution Provider (CSP) program or the Microsoft Customer Agreement for Enterprise (MCA-E). This should help make the transition smoother and more cost-effective for organisations.  

BCN can help identify if you are available for Microsoft Incentives and provide detailed information about funding support and how to access it. We will also assist with the application process and ensure you receive the maximum benefits. 

A positive change 

These changes also pave the way for long-term benefits, positioning your organisation better for future Microsoft licencing models.  

  1. Enhanced Flexibility: The new licencing models offer greater flexibility with subscription options, allowing organisations to scale their services more efficiently based on their needs. 
  1. Streamlined Experience: The transition to the CSP program or MCA-E aims to simplify the contracting experience, making it easier for organisations to manage their licenses and subscriptions. 
  1. Strengthened Partner Ecosystem: By moving to these new programs, Microsoft aims to strengthen its partner ecosystem, ensuring that small and midsize businesses receive more tailored support and services. 
  1. Future-Proofing: These changes are part of Microsoft’s broader strategy to future-proof its licencing models, ensuring they remain relevant and beneficial. 

Transition Guide for Businesses: Navigating Microsoft’s EA Licencing Changes with BCN 

As Microsoft transitions away from the traditional Enterprise Agreement (EA) framework, it’s crucial for businesses to plan and execute a smooth transition to the new licencing models. Here’s a step-by-step guide to help your organisation navigate this change effectively, with support from BCN. 

Step 1: Understand the Changes 

  • Review the Announcement: Familiarise yourself with the details of Microsoft’s changes to the EA licencing. Understand which programs (CSP or MCA-E) are available and how they differ from your current EA. 
  • Identify Affected Agreements: Determine if your current EA falls under the Level A tier (up to 2,400 users) and will be impacted by the changes. 
  • How BCN Can Help: BCN can provide detailed briefings and documentation to help you understand the changes and their implications for your organisation. 

Step 2: Assess Your Current Licencing Needs 

  • Inventory Your Licenses: Conduct a thorough inventory of your current licenses and usage. Identify which licenses are critical to your operations and which ones can be optimised. 
  • Evaluate Future Needs: Consider your organisation’s growth plans and future needs. This will help you choose the most suitable licencing model moving forward. 
  • How BCN Can Help: BCN offers a free license assessment to help you understand your current usage and future requirements. 

Step 3: Plan Your Transition 

  • Set a Timeline: Establish a timeline for the transition, keeping in mind the January 2025 deadline. Allow time for planning, execution, and potential troubleshooting. 
  • Allocate Resources: Assign a dedicated team or individual to oversee the transition. Ensure they have the necessary resources and support to manage the process effectively. 
  • How BCN Can Help: BCN can assist in creating a detailed transition plan and timeline, ensuring all critical milestones are met. 

Step 4: Engage with BCN 

  • Utilise Microsoft Resources: Take advantage of the resources and support offered by Microsoft, including transition guides, FAQs, and customer support. 
  • How BCN Can Help: We can be your primary point of contact, offering expert guidance and leveraging our direct relationship with Microsoft to ensure you receive the best support. 

Step 5: Choose the Right Licencing Model 

  • Compare Options: Evaluate the CSP program and MCA-E to determine which model best fits your organisation’s needs. Consider factors such as cost, flexibility, and support. 
  • Make a Decision: Based on your evaluation, decide on the licencing model that aligns with your business goals and requirements. 
  • How BCN Can Help: BCN will provide detailed comparisons and recommendations tailored to your specific needs, helping you make an informed decision. 

Step 6: Implement the Transition 

  • Migrate Licenses: Begin the process of migrating your licenses to the new model. Ensure that all critical licenses are transferred without disruption to your operations. 
  • Test and Validate: Conduct thorough testing to ensure that all systems and applications are functioning correctly under the new licencing model. 
  • How BCN Can Help: BCN will manage the migration process, ensuring a seamless transition with minimal disruption to your operations. We will also conduct testing and validation to confirm everything is working as expected. 

Step 7: Train and Educate Your Team 

  • Provide Training: Offer training sessions for your team to familiarise them with the new licencing model and any changes to processes or tools. 
  • Communicate Changes: Clearly communicate the changes to all stakeholders, ensuring they understand the benefits and any new procedures. 
  • How BCN Can Help: BCN offers advice and info to ensure your team is fully prepared for the new licencing model, assisting in communicating the changes to your stakeholders. 

Step 8: Monitor and Optimise 

  • Monitor Usage: Continuously monitor your license usage to ensure compliance and optimise costs. 
  • Seek Feedback: Gather feedback from your team and stakeholders to identify any issues or areas for improvement. 
  • How BCN Can Help: BCN provides ongoing monitoring and optimisation services, ensuring you remain compliant and cost-effective. We will also gather and act on feedback to continuously improve your licencing strategy. 

Transitioning to Microsoft’s new licencing models with BCN 

Transitioning to Microsoft’s new licencing models may seem challenging, but with careful planning and the right support from BCN, your organisation can navigate this change smoothly. By leveraging BCN’s expertise, you can ensure a seamless transition and position your business for future success.  

BCN is an accredited provider of Microsoft technology across the UK and internationally. Our customers trust our experts to grow their businesses through best practice use of Microsoft technology. Whether you just want a Microsoft 365 subscription, or your business is looking for a new Managed Service Provider, BCN can support with all of your IT needs. 

As an accredited Microsoft Partner, BCN helps businesses across the UK and internationally leverage Microsoft solutions to drive growth. Our commitment to sustainability, equality, and ethical innovation is reflected in our signing of the Microsoft Partner Pledge. 

Partner with BCN for a seamless, ethical approach to technology. Start with a free licencing assessment or contact one of our experts to begin your transition today.

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