Big Microsoft EA changes are here. Here’s your immediate next steps

Whether it’s a transition toward subscription-based licensing or removing Teams from the Microsoft 365 (M365) suite, Microsoft has made several significant changes over the years. Now, another set of changes is on the horizon. These upcoming adjustments may be more subtle but could have a considerable impact.

As of January 2025, many cloud Enterprise Agreement (EA) customers are headed for the Microsoft Customer Agreement for Enterprise (MCA-E) framework. This shift aims to streamline processes and offer more flexibility and efficiency. However, the transition to MCA-E introduces several complexities that customers must navigate.

Microsoft has shared that “cloud Enterprise Agreements in direct markets” will be directed to move to MCA-E, but has not yet notified specific customers of the impending change. The uncertainty has many organizations working to understand if — or when — they’ll be affected.

Enterprise Agreements have long served as Microsoft’s primary volume licensing vehicle for large organizations, offering predictable costs and standardized terms. The MCA-E promises similar benefits but introduces updated billing structures, payment systems, cost management approaches, and more.

For IT teams already stretched thin, these changes demand immediate attention.

What changes under MCA-E?

The shift to MCA-E introduces a markedly different billing structure. Gone is the single EA invoice model. In its place: a layered system of billing accounts, profiles, and invoice sections that organizations must learn to navigate.

Think of it like this: Your billing account represents your overarching agreement with Microsoft. Under that, billing profiles function like your current EA enrollment. Each profile generates its own invoice, and you can create multiple sections within those invoices to handle departmental chargebacks more efficiently.

But timing matters. Your charges will be redirected to the MCA billing account immediately after migration. Any pre-migration charges stay with your EA and must be settled there. During the transition period expect two invoices — one from each system.

Access to historical data changes, too. While you’ll still see past charges in the Azure portal under your EA scope, subscription ownership alone won’t grant access to that historical data. Download your cost and usage information before migration to ensure a smooth transition.

And the changes extend beyond billing structure. Software assurance (SA) and its benefits will not exist in MCA-E. Organizations that rely on SA benefits under their EA will need to evaluate potential lost rights and consider alternative agreement types that include SA coverage.

True-up process and price protection

The familiar true-up process disappears as well, removing the annual mechanism to reconcile deployed licenses. Organizations must develop new strategies for managing compliance and licensing requirements throughout the year. Without this annual mechanism to reconcile deployed licenses, organizations must develop new strategies for managing compliance and licensing requirements throughout the year.

Price protection will also evolve. The EA’s tiered pricing discounts and price protections won’t carry over to MCA-E, which features term-based subscriptions instead. While this offers more flexibility and the potential for cost savings, organizations may face potential price fluctuations and reduced long-term cost predictability.

Your first steps

Don’t wait for Microsoft’s notification. Organizations waste an average of $18 million annually on unused licenses. Optimizing your licensing today saves headaches and money tomorrow.

Start with a thorough inventory of your Microsoft environment. The MCA billing account owner must initiate the transition process. You need to know exactly who controls your current agreements, how your departments use their licenses, and where potential optimization opportunities exist.

Next, examine your payment processes. Bank remittance details for MCA differ from EA payments. Your accounts payable team needs time to adjust their systems and workflows. Adding an accounts payable email address as an invoice recipient for your MCA is crucial.

Don’t forget your data. Even as an account owner or enterprise administrator, you’ll only see historical charges in cost analysis after migration. Export your usage data, cost reports, and invoice history now. Future you will appreciate the foresight.

Partner with experience

The complexity of Microsoft’s licensing changes demands expertise. Understanding your current EA structure, planning for MCA-E migration, and optimizing your license position require a strategic approach — and SHI delivers precisely that.

SHI’s Microsoft licensing experts take a proactive, customer-first approach to managing and optimizing your Microsoft environment. We help you understand not just what’s changing but how those changes impact your organization’s specific needs and goals. Through in-house strategic services, we ensure your transition plan aligns with both immediate requirements and long-term objectives.

Our support extends far beyond basic licensing guidance. SHI’s comprehensive services include deployment, implementation, training, and managed services. This means you get practical, hands-on assistance throughout your entire transition journey, from initial assessment through final implementation.

Poor visibility into your Microsoft estate isn’t just expensive – it’s dangerous. This is why major licensing transitions also require comprehensive IT asset management (ITAM). That’s where SHI’s ITAM services come into play.

Our team helps you build a complete picture of your Microsoft estate before migration begins. We analyze your current EA structure, identify potential optimization opportunities, and create a clear roadmap for transition that aligns with your business objectives.

Beyond standard license tracking, we help you understand the nuances of the new MCA-E framework. How will different billing profiles affect your cost allocation? Which departments need their own invoice sections? Where can you consolidate licenses or reassign resources? These insights prove invaluable during major licensing transitions.

Make your move today

Right now, organizations are receiving notifications that their EA renewal options are gone. We encourage you to act now and take control of your transition strategy on your own timeline to avoid scrambling later.

Ready to turn this situation into an opportunity to unlock the full potential of your Microsoft investment? Put our licensing expertise to work for your organization today.