From EA to CSP and MCA: What impact does this have for Microsoft’s customers?
Microsoft has announced news for mid-sized organizations: the threshold for an Enterprise Agreement (EA) is being raised significantly. For many organizations, this could mean they are forced to move to a Microsoft Customer Agreement (MCA) and Cloud Solution Provider (CSP), with major implications for their license management and costs.
In this article, we will tell you what the most important changes and points of attention will be, so that your organization is prepared for the impact of this shift.
From Microsoft EA to MCA
Currently, Microsoft offers Enterprise Agreements for customers with a minimum of 500 up to 2,399 users or devices, the so-called “Level A” customers. However, new rumors suggest that Microsoft wants to raise the threshold to 2,400 users or devices. This would mean that companies with fewer than 2,400 users would no longer be eligible for an EA and would be forced to move to an MCA. But why?
Why this change?
Microsoft has been gradually raising the barrier to entry for Microsoft EA customers for some time now. For example, a few years ago, the discount for Level A customers was removed and the minimum threshold was raised from 250 to 500 users. It seems that Microsoft ultimately wants to push smaller organizations completely towards CSP and MCA licensing, probably because of the simpler contract form and the greater flexibility that MCAs offer in price and purchase form, according to Microsoft.
What does an MCA mean for your organization?
Moving from EA to CSP and MCA could mean some significant changes for your organization. Microsoft itself presents CSP and MCA as a flexible option with advantages such as shorter contracts (around nine pages versus thirty for an EA) and automatic renewals. In addition, the MCA platform also provides a central overview of all products and services.
However, an MCA is not without its disadvantages. For example, the transition to MCA can lead to more complicated licensing and potentially higher costs. Companies may have to use multiple contracts through different resellers, which can result in additional costs and administrative burdens.
Want to learn more about how the transition to a Microsoft Customer Agreement (MCA) can impact your organization? We can help you take the right steps and minimize the impact of these changes.
The financial consequences of this transition
If you are one of those mid-sized businesses that may soon have to make the switch, the first question you are probably asking yourself is “But what are the financial implications of making the switch?” This often varies from organization to organization. While Cloud Solution Providers (CSPs) have some freedom in pricing, which can lead to lower costs, customers often lose important benefits they had under an Enterprise Agreement. For example, under an EA, organizations could retain Software Assurance (SA) for (non-subscription) licenses, such as Windows Server and SQL Server. With MCA, this option is not available, which may require organizations to switch to more expensive subscription licenses.
Additionally, an MCA structure also offers less room for negotiation. For some products and services, such as Microsoft 365, this may mean that organizations must purchase certain subscriptions separately, which can lead to higher costs. Another potential downside is that customers who switch to MCA may no longer be eligible for Microsoft 365 bundled with Teams, as Microsoft will then consider them “net new customers” without access to bundles. Microsoft itself does not comment on this but does note in documentation that customers who switch to MCA may not be recognized as existing customers, which may lead to restrictions on bundle purchases.
What can your organization do now?
Does your organization have an Enterprise Agreement, and do you currently have fewer than 2,400 users? Then it is wise to prepare your organization for the change from EA to CSP or MCA. The first step is to map out how your current EA conditions differ from what CSP or MCA offers. Pay particular attention to products that form important parts of your IT infrastructure, such as Software Assurance or specific Microsoft 365 licenses such as Microsoft Teams.
In addition, it may be wise to discuss the transition to MCA and the potential consequences for existing contracts and conditions with an independent expert such as Q-Advise. By planning ahead and identifying potential costs and administrative challenges, organizations can try to minimize the impact of the transition.
Advice and support for a smooth transition to MCA
We, at Q-Advise, are a completely independent organization that is happy to help you make your transition to a Microsoft Customer Agreement (MCA) and Cloud Solution Provider (CSP) a careful and smooth process.
With our expertise, we can work with you to map out the consequences for your current contracts, potential cost implications and administrative challenges. By proactively planning and taking the right steps, we can minimize the impact of this change.
Get in touch with us for independent advice and a personal approach that meets the needs of your organization.