Still want to know more about CSP?
Join our upcoming webinar “Accelerate Your Digital Workplace with CSP” to learn more.
Still want to know more about CSP?
Join our upcoming webinar “Accelerate Your Digital Workplace with CSP” to learn more.
Navigating Microsoft's various software agreements can be a bit overwhelming, but it's essential to ensure you're getting the best deal for your organisation's needs. Let's break down three of the most common agreements:
- Enterprise Agreement (EA)
- Cloud Solution Provider (CSP)
- Microsoft Customer Agreement for Enterprise (MCA-E)
Each of these offers unique features, terms, and benefits tailored to different organisational requirements. Below is a detailed comparison of EA, CSP, and MCA-E to help IT and procurement leaders make informed decisions about the right licensing choice for your business. (Spoiler alert: CSP might just be the best fit for many organisations.)
| Category | EA | CSP | MCA-E |
|---|---|---|---|
| Agreement Term | Fixed term of 3 years | Evergreen agreement with no fixed term | Evergreen agreement with no fixed term |
| OLS Subscription Term | Coterminated with the agreement term | Flexible terms, including monthly, annual, and triannual options | Similar to CSP, with monthly, annual, and triannual options |
| Purchase Coverage | Organisation-wide coverage | As needed, providing more flexibility | As needed, similar to CSP |
| Minimum Commitment | A minimum of 500 qualified devices or users | No minimum commitment required | No minimum commitment required |
| Reductions | Allowed at anniversary, with specific rules applying | Allowed at the subscription end date | Allowed at the subscription end date |
| Licence Management | Managed through the Microsoft Volume Licensing Service Center (VLSC) and admin portal | Managed through the SoftwareOne client portal and Microsoft? admin portal | Managed through Microsoft |
| On-premise Licences | Available | Available | Available |
| Software Assurance | Included | Not available in MCA; only through complementary Volume Licence Agreements like MPSA | Not available in MCA; only through complementary Volume Licence Agreements like MPSA |
| Support | Not included; must be purchased separately from a partner or Microsoft | Included directly with the partner | Not included; must be purchased separately from a partner or Microsoft |
| Other Services | Added separately, increasing the contract value | Included, with scope varying depending on the CSP Partner | Not included; must be purchased separately from a partner or Microsoft |
| Advisory and Expertise Partner Assignment | Not included | included | Not included |
| Pricing | Set by Microsoft, formalised, with savings focused only on licences to increase their volume | Set by the partner, flexible, total cost of ownership (TCO)-focused (Licence + Services) savings | Set by Microsoft (no discount levels defined, not meeting EA discounts); discounts in return for growth |
| Price Protection | Price protection throughout the contract duration | Price protection throughout the subscription duration | Price protection throughout the subscription duration |
| Payment Terms | Annual or 3 years | Monthly or annual | Monthly or annual |
| Invoicing | Rigid invoicing from Microsoft | Flexible billing options from SoftwareOne | Rigid invoicing from Microsoft |
| Azure Offerings | Azure Prepayment | Azure Plan and Azure Savings Plan | Azure Prepayment, Azure Plan, and Azure Savings Plan |
Choosing the right agreement—EA, CSP, or MCA-E—really depends on your organisation's specific needs and strategic goals. By understanding the key differences between these agreements, you'll be better equipped to make the best decision for your business.
CSP stands out as an attractive option compared to EA, offering similar benefits but with more flexibility.
Managing your licences and services can be quite complex. However, with the SoftwareOne Marketplace platform, clients can discover, buy, and manage software and cloud solutions through our self-serve client portal.
With Microsoft set to increase prices on April 1st, 2025, this is a good time to review your Microsoft licensing agreement. Doing so may open up cost savings and provide you with greater flexibility, better support, and simpler licence management.
SoftwareOne has 30 years of experience in Microsoft licence management and has helped countless clients innovate while achieving significant cost savings. We’re ready to help.
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