The end of volume discounts: discover smarter licensing options for 2025

 Microsoft to retire volume-based discounts for online services from November 2025

Microsoft has announced a significant change to its licensing model that will impact many organisations across Ireland and the UK. Effective 1 November 2025, volume-based discounts (Levels B–D) will be removed for all Online Services purchased under the following agreements:

• Enterprise Agreement (EA)

• Microsoft Products and Services Agreement (MPSA)

• Open Value Subscription Agreement (OSPA)

Following this change, all affected customers will move to Level A pricing, which is aligned with Microsoft’s public list prices.

Scope of Impact:

• Services affected: Microsoft 365, Dynamics 365, Windows 365, Azure, and other Online Services.

• Customers excluded: Education sector customers are not impacted by this change.

• Unchanged pricing: On-premises software pricing remains unaffected.

This development removes the traditional benefit of volume-based discounts, meaning organisations that previously qualified for preferential pricing through scale will now incur higher costs for Online Services.

Strategic considerations for organisations

For many organisations, this change will translate to a substantial increase in annual licensing expenditure. It is therefore essential to assess alternative procurement models that can deliver both cost savings and enhanced value.

Codec’s CSP+ offering: A more effective licensing model

Codec’s Cloud Solution Provider Plus (CSP+) program represents a strategic alternative to Microsoft’s legacy licensing agreements. Through CSP+, organisations can benefit from:

• Lower total cost of ownership compared to EA agreements.

• Enhanced service and support, ensuring greater value from Microsoft investments.

• Greater flexibility, with scalable licensing options designed to adapt to evolving business requirements.

By adopting CSP+, organisations can mitigate the financial impact of Microsoft’s licensing changes while gaining access to a more customer-centric service model.

Preparing for November 2025

Organisations currently utilising EA, MPSA, or OSPA should begin evaluating their licensing strategy well in advance of November 2025. Proactive planning will enable businesses to:

• Avoid unbudgeted cost increases.

• Transition smoothly to a more cost-effective model.

• Align licensing with long-term digital and cloud strategies

Conclusion

Microsoft’s decision to retire volume-based discounts underscores a broader shift towards simplified, standardised pricing for Online Services. While this presents cost challenges for many organisations, it also provides an opportunity to adopt more flexible and value-driven alternatives.

Codec’s CSP+ offering is uniquely positioned to deliver cost savings and superior support for organisations across Ireland and the UK.

To discuss how CSP+ can support your organisation, please contact Richard Nolan, Head of Digital Licensing today: rnolan@codec.ie