What Microsoft’s 2025 Licensing Shift Means in 2026 (and Why the Right Partner Matters)

Volume Discounts Are Gone. Value Isn’t.

As of November 1, 2025, Microsoft officially eliminated volume-based licensing discounts across its Online Services portfolio, including Microsoft 365, Azure, Dynamics 365, Power Platform, Defender, and GitHub. Now, in 2026, the implications of that decision are coming into sharper focus for organizations planning their next steps.

Microsoft licensing is now standardized. Whether you’re deploying 500 users or 15,000, pricing is aligned to a single list rate—removing one of the biggest historical levers organizations used to manage costs.

At the same time, Microsoft has continued its strategic shift toward the Cloud Solution Provider (CSP) model, positioning partners—not pricing tiers—as the primary source of differentiation and value.

Who Felt the Impact Most?

Organizations that previously benefited from volume-based discounts under Enterprise Agreements (EA) or MPSA are most affected. Depending on size, many will experience effective increases of 6–12% at renewal now that pricing has normalized to list rates.

In practical terms:

• Large enterprises lost scale-based discounts
• License costs became more transparent—but less negotiable
• Organizations that gained value based on price per seat now need to consider how licenses are used

Why Microsoft Made the Change

Microsoft’s rationale has been consistent:

• Simplify licensing models
• Align pricing across channels
• Create consistency with consumption-based services like Azure and Copilot

But the bigger shift is strategic. Microsoft is no longer rewarding volume—it’s rewarding cloud maturity, adoption, and outcomes. Licensing is now a baseline. Everything else depends on how effectively organizations deploy, govern, and evolve their technology.

CSP in 2026: It’s Not About Discounts—It’s About Results

With volume discounts off the table, CSPs don’t compete on price. They compete on execution, optimization, and long-term value.

That’s where the real difference now lies.

What CSPs Deliver Today

• Flexible licensing with the ability to scale up or down
• Monthly or annual billing aligned to real usage
• A single point of accountability for licensing, support, and strategy
• Ongoing guidance—not just at renewal time, but year-round

What’s Changed

• CSPs can’t offset costs with discounts
• Value now comes from reducing waste, improving adoption, and aligning technology to business goals
• The right partner helps you do more with what you already pay for

Why Enavate Is More Than a Licensing Partner

In this new licensing reality, Enavate serves as a total solution partner, not just a reseller.

That means we can help:

• Optimize licensing by aligning entitlements to real usage
• Reduce hidden costs through consolidation, cleanup, and governance
• Connect licensing decisions to ERP, data, AI, and modernization strategies
• Turn Microsoft investments into measurable business outcomes

Whether you’re running Dynamics GP, moving to Business Central, adopting AI, or modernizing reporting and security, licensing is no longer a standalone decision—it’s part of a broader roadmap.

And that roadmap requires more than a transaction. It requires a partner who understands your systems, your goals, and what’s coming next.

What This Means for You in 2026

• If you’re renewing an EA, the historical pricing advantage is gone
• If you’re already working with a CSP, the focus should shift to optimization and value realization
• If you’re evaluating your licensing model, now is the time to reassess—not just what you’re buying, but why

In a world where pricing is fixed, outcomes are the differentiator.

As a Microsoft CSP and solutions partner, Enavate helps you navigate licensing changes, modernize with confidence, and ensure every Microsoft dollar supports your broader business strategy—today and into the future.

Talk to an Enavate Expert about your licensing needs today!