Insight announcements Microsoft’s Licensing Shift is Here — Now’s the Time to Rethink Your Cloud Strategy

Microsoft’s recent announcement that it will level pricing across its online subscription products is a significant update for businesses worldwide. But it’s not just a pricing change, it’s a strategic moment to think deeper about your cloud planning.

The update is part of Microsoft’s long-term modernization journey through the New Commerce Experience (NCE), and it reflects a broad shift in how cloud services are consumed, managed, and optimized. Microsoft is moving to support all clients through their Microsoft Customer Agreement (MCA) program.

For organizations, it’s a prompt to step back and ask: Are we using the right services and getting the most value out of our cloud investments? More importantly, how can we better align our licensing with our business goals?

At Insight, we see this as an opportunity rather than disruption. With the right strategy and the right partner, you can use this moment to simplify your licensing, improve forecasting, and build a smarter, more flexible cloud foundation.

Let’s break down what’s changing and how you can make the most of it.

What’s changing?

Starting Nov. 1, 2025, Microsoft is standardizing pricing for online subscription products across Enterprise Agreements (EA), Enterprise Agreement Subscriptions (EAS), Server and Cloud Enrollment (SCE), and Microsoft Products & Services Agreements (MPSA). That means their current pricing tiers will be replaced with a consistent Manufacturer’s Suggested Retail Price (MSRP) — so, what you’d see on the Microsoft website.

The pricing consistency update applies to your next agreement renewal. So, if your next renewal is in a few years, that’s when your pricing would be subject to change, unless you add any net new service, in which case the price will update this November.

This is designed to simplify licensing and standardize pricing across all purchasing motions: breadth (from a Cloud Solution Provider or CSP partner), enterprise (from a Microsoft account team), and self-service (from the Microsoft website). To be clear, this applies to online services only; The status quo stays intact for on-premises products and government/education pricing.

What does this mean for your company?

Some organizations will see price increases — especially those that previously benefited from deep volume-based discounts. But this isn’t a blanket price hike. It’s a shift in how Microsoft calculates value.

Discounts are now tied to strategic alignment with Microsoft’s priorities — like Azure, AI, Copilot, Security, and Dynamics — not just license volume. That means your licensing strategy needs to be more intentional and more aligned with your broader technology roadmap. Instead of trying to determine how much more you’ll pay, a better question to ask is: “What’s my company’s best strategy going forward?”

This is where Insight comes in. We help you look beyond the price tag and ask the right questions:

• What’s working for you right now with your current Microsoft setup?
• What changes are coming in your organization over the next 12 to 36 months?
• What technology solutions still need to be implemented and deployed to help you get there?
• What advanced Microsoft solutions have you not purchases/deployed yet that may help you replace another legacy investment and ultimately achieve your business objectives?
• How can you align your licensing with actual consumption and business goals?

Microsoft’s goal is to complete their journey to support all clients with the MCA program. This will progress over the next few years, with details about this specific update still pending before the changes take effect on Nov. 1. What Insight will help you do is understand your options — because you have several:

1. Renew your existing agreement(s) or EA (with likely pricing changes).
2. Transition to CSP/MCA with a Microsoft solutions partner like Insight.
3. Explore the MCA for Enterprise (MCA-E) model directly with Microsoft, usually reserved for large Enterprise sized companies.

Managing all this isn’t just about choosing the right licenses. It’s about orchestrating the right mix of services, governance, and strategy. We can help you evaluate which path best supports your goals —whether that’s maintaining continuity or gaining more flexibility.

Why Insight?

As one of Microsoft’s largest and most experienced partners, Insight has been preparing for this shift for years as a partner that’s closely aligned to Microsoft’s modernization roadmap. We know how to help you navigate it with confidence.

Our role goes far beyond licensing. As a Solutions Integrator, we help you optimize how your organization manages cloud, from workload placement and hybrid architecture to financial governance and forecasting. We connect the dots between your cloud strategy, operational execution, and business outcomes.

Our services — including RADIUS for strategic planning and alignment, DEVSHOP for ongoing enhancement and optimization, Insight VL Care to manage your Microsoft Volume Licensing (VL), and FinOps for financial accountability — are designed to help you make smarter, more sustainable decisions.

This isn’t about reacting. It’s about planning. You’re not losing control — you’re gaining clarity. And Insight is here to help you take full advantage of this moment.