Navigating Microsoft CSP & New Licensing Agreements – What SMBs Need to Know

Alongside this shift in agreements, Microsoft has increased prices on monthly-billed licences by 5%, effective 1 April 2025. This affects many of the tools SMBs rely on daily, including:

• Microsoft 365 and Office 365
• Dynamics 365 business apps
• Enterprise Mobility + Security
• Power Platform (including Power BI)
• Windows 365 virtual desktops

In addition, Teams Phone Standard licences now cost $10 per user/month, a sharp rise for organisations with large call centre or hybrid-work phone requirements.

This isn’t a one-off, it reflects Microsoft’s global strategy to bring cloud pricing in line across regions and encourage customers to commit to longer-term plans. If you’re on monthly billing through CSP or MCA-E, you’re likely already seeing these price changes on your invoices.

For many SMBs, Microsoft licences are essential, but often unmanaged. Licences are added for new hires, never removed for leavers, and costs quietly increase over time. These 2025 changes make it harder to ignore licensing strategy because:

• Operational costs are rising. Even a 5% increase adds up quickly if you have hundreds of users.
• Licence waste is expensive. Paying for licences you’re not using directly eats into your budget.
• The admin burden is real. New agreements can be confusing if you manage them alone.

The flip side? This is also an opportunity to take control. By auditing your licences, reviewing your billing model, and moving to MCA-E through a CSP partner, you can:

• Lock in lower pricing with annual terms or right-sized licences.
• Simplify your administration with one agreement and one invoice.
• Gain ongoing advice so you’re not left to figure out licensing on your own.

CPS is a certified Microsoft Cloud Solution Provider (CSP) with deep experience helping SMBs navigate licensing changes. We do more than just sell licences — we provide strategic guidance to make sure you’re getting maximum value from your Microsoft investment.

Our services include:

• Licensing reviews and optimisation, ensuring you’re not paying for unused seats.
• Migration support, transitioning you smoothly from EA or direct agreements to MCA-E under CSP.
• Managed billing and forecasting, helping you plan costs and avoid surprises.
• Security and compliance planning, ensuring your Microsoft environment meets your industry requirements.

With CPS, you gain more than licences, you gain a partner who acts as an extension of your IT team, ensuring your licensing stays aligned with your business strategy.

Don’t Let Licensing Changes Catch You Off Guard

Microsoft’s shift away from EAs and its price increases through CSP might feel disruptive, but with the right planning, they don’t have to hurt your business. In fact, this is an opportunity to simplify how you manage your licences, control costs, and future-proof your Microsoft environment.

Talk to CPS today to review your licences, explore your options under MCA-E, and take back control of your Microsoft spend.