It seems that Microsoft are gearing up to position CSP (Cloud Solution Provider) as a replacement for Enterprise Agreement Level A.
In a recent blog post from Dan Truax, General Manager for Partner Digital Experiences and Programs, Microsoft revealed some very interesting information. The post talks about how the current purchasing experience across the various licensing programs is “fractured” as each program has its own terms, prices, consoles, sales processes etc. It states that all customers will sign the “Microsoft Customer Agreement” (MCA) which is currently only for CSP and there will be two “motions – Breadth (CSP) and Enterprise. The desire to simplify licensing is far from new but the blog post goes on to state:
“Partner economics in the breadth motion will be optimized for deals below 2400 seats for new commerce seat-based online service offers, or Azure deals below $1M USD annualized consumption”
Now, “Breadth motion” = CSP and 2,400 seats is the starting point for Enterprise Agreement Level B pricing. This seems to indicate that Microsoft will re-level pricing, and partner rebates and incentives, to make CSP the more attractive option for organisations below 2,400 seats. This is a fairly significant change, furthering Microsoft’s move to make Enterprise Agreements the domain of the large customers with more bespoke needs.
A few years ago, they raised the EA Level A entry point from 250 to 500 seats and I’ve long expected it to be increase to 1,000. In the above post, Microsoft state that the new incentives and pricing changes won’t be implemented before March 2022 at the earliest so perhaps we won’t see any changes until then.
See Microsoft’s post here.