It’s a running joke that just as we’re getting used to something, Microsoft will change it’s name or how it works.

Whilst there may be some truth to that, those changes are always done with their customers in mind… and the new licensing changes you may have been hearing about are no different.

They’re not just minor tweaks either… there’s some big changes coming that you’ll need to stay on top of BUT once the dust settles, you should find you’re in a much better position than you were before.

What Changes Are Microsoft Making To Their Licensing Model?

As we’ve already said, Microsoft’s licensing model is going through some pretty big shake ups.

There’s already been some big changes this year, with M365’s flexible Copilot billing coming in, Teams being separated out from the Office suite and the expansion of Copilots eligibility (all of which happened back in April).

But as of 2025 there’s more changes to come… changes you need to be aware of and ready for.

Transitioning From EA’s (Enterprise Agreements) to MCA-E’s (Microsoft Customer Agreements for Enterprise

See… We got a name change and a how it works change with this one!

As of January 2025, you won’t be able to renew your traditional EA’s anymore as Microsoft will be replacing them with their new MCA-E’s, with the goal being to create a better, more streamlined process for organisations with much more flexibility.

With the old EA licenses, an organisation would enter into quite a long contract with Microsoft (normally around three years) with upfront commitments on exact licensing quantities during that period (and almost no flexibility for fluctuations in demand during that three-year tenure).

Now EA’s were great at creating stable, predictable costs… but they were never exactly what you’d call flexible or adaptable.

And for anyone that ever had to handle their EA licensing, you’ll know just how laboriously manual the process could be!

Which is why, as of Jan 2025, you can start replacing your EA renewals with MCA-E’s.

• They’re flexible, letting organisations scale their licenses up and down, without long term commitments, as business needs change.
• They’re much more streamlined, with a lot of the old manual process you may remember from your EA done away with. All contracts are controlled digitally through a portal, making tracking your spending much easier.

Got an EA renewal coming up? Reach out here >> if you’d like help with your new MCA-E.

Power BI Premium SKUs (P-SKUs) Are Being Retired

By the time you read this, Microsoft will have already started the process of retiring P-SKUs, replacing them instead with a new licensing model that will be based on Azure Fabric to again, introduce more flexibility in SKU sizes with a pay-as-you go billing option.

Power BI Premium P-SKU’s used to be offered with a fixed set of features under a standard subscription format. You’d need to commit to specific licensing tiers, with again, limited flexibility. That normally meant most organisations would have to over-provision on their licensing resources to account for short-term surges in demand.

As of next year though they’ll be transitioning to Azure Fabric.

That will come with more flexibility again, with a much broader, more granular range of licensing tiers to avoid huge jumps in over-provisioning; pay-as-you bill billing options with no commitment to a fixed subscription and, as they’re part of Azure Fabric, your Power BI will be that much more integrated with other Azure services– making your data processing more efficient and streamlined.

Pricing Updates

Everyone’s favourite bit… the price changes!

As of April 2025, Microsoft will be introducing a 5% price increase for any organisation that chooses monthly billing with an annual agreement (meaning there’s savings to be made for upfront purchases).

Hopefully that covers most of what you need to know, but as always, if you have concerns or need some friendly help, we’re happy to have a chat, just reach out below.