Microsoft Enterprise Agreement (EA): The comprehensive Guide

What is the Microsoft Enterprise Agreement?

The Microsoft Enterprise Agreement is a licensing agreement that gives large businesses access to a wide range of Microsoft products and services. Under the Enterprise Agreement, organizations can purchase a specified number of licenses for Microsoft products for which fees are paid based on the number and type of licenses. These licenses can be used over the prescribed period of time.

The Microsoft Enterprise Agreement is a flexible option for companies that require a large number of licenses. It provides an easy way to manage and optimize the licensing and support of Microsoft products.

The program allows companies to purchase all the Microsoft products and services they need at a reduced price, and also provides centralized administration and simplification of license management.

Besides the Enterprise Agreement, there is the Enterprise Subscription Agreement, another Microsoft licensing program, which offers even better conditions and flexibility.

Microsoft Enterprise Agreement: Involved Parties

Microsoft Enterprise Agreements, like the Enterprise Subscription Agreement (EAS), are signed between Microsoft and an organization via a third party – a Microsoft Licensing Solution Partner (LSP). A Licensing Solution Partner (LSP) is a Microsoft Partner who is named as the Partner of record in Microsoft enterprise licensing deals, such as types of Enterprise Agreements. This Microsoft Licensing Solution Partner (LSP) acts as a Software Advisor, consults your organization concerning Microsoft licensing and negotiates with Microsoft to get you the best offer for your EAS.

While there are many registered Microsoft Partners, only few are registered LSPs (such as SCHNEIDER IT MANAGEMENT).

Types of Enterprise Agreements

The EA program is divided into several options that address different business needs and requirements. These include

• the Enterprise Enrollment,
• the Enrollment for Education Solutions (EES), and
• the Server and Cloud Enrollment (SCE).

These range 3 years, 3+2 years or 5 years. Let’s look at them in detail.

Enterprise Enrollment

This is a commitment-based licensing agreement for organizations with 500 or more users or devices that want to buy cloud services and software licenses under one agreement.

Key benefits of the Enterprise Enrollment

• You get the best value, discounts, and added benefits for server and cloud technologies.
• You can access the latest versions of cloud and on-premises software and choose from Microsoft cloud services, on-premises software, or a mix of both.
• You can streamline license management with a single organization-wide agreement and simplify purchasing with predictable payments.
• You can move to a pure per user licensing model and simplify licensing with no more device counting.

Enrollment for Education Solutions (EES)

The Enrollment for Education Solutions (EES) provides subscription licensing for primary/secondary and higher education institutions with over 1,000 users. EES offers the simplicity of licensing Education Platform Products organization-wide through an annual count of users (known as “Education Qualified Users”) instead of PCs/devices and the flexibility to order additional products in any quantity. EES provides assured coverage for Education Platform Products through one annual count of Education Qualified Users, the ability to add additional products as needed, free licensing options, and student use benefits for popular products.

There is a one-year and a three-year option. Whether you choose the one-year or three-year option, you can place orders with your reseller at any time during the year after your initial order.

The EES is acquired through a Licensing Solution Provider (LSP), such as SCHNEIDER IT MANAGEMENT.

Key benefits with the Enrollment for Education Solutions (EES)

• Broader access: Access the full suite of products and services that can help you expand your effectiveness in educating students and supporting faculty and staff.
• Direct technology spending: By counting only the Education Qualified Users that need full access to the products, you accurately license faculty and staff for the full suite of Microsoft cloud services and products they need.
• Free web access for non-Education Qualified Users: Users have free1 access to Office 365 A1, plus the ability to subscribe to Microsoft cloud services or on-premises products as needed.
• Productivity tools and benefits: Push the boundaries of the classroom with tools that help students and faculty interact and innovate with each other and those beyond the classroom environment.
• Easy compliance: Education Platform Products are licensed per user, making it easy to account for your Education Qualified Users and ensure they get the coverage they need.
• Customized solutions: Easily add licenses for Additional Products organization-wide, department-wide, or for individual licenses at any time during your subscription term so you can deliver the right mix of technology and services to your faculty, staff, and students.
• Student use benefit: When you license certain products organization-wide, you qualify for corresponding subscription licenses for your students at no additional cost. The student use benefits are explained in the Product Terms.
• Low administration: Subscription and per user licensing eliminates the need to track licenses for the selected Education Platform Products on every device, which helps your IT staff to be more productive because they no longer need to track multiple licenses across the organization.

Server and Cloud Enrollment (SCE)

The Server and Cloud Enrollment (SCE) is an enrollment under the Microsoft Enterprise Agreement that allows committed customers to standardize broadly on one or more key Server and Cloud technologies from Microsoft.

In addition to SCE specific benefits, access unique Enterprise Agreement benefits including volume discounts and the most flexible and predictable terms available with any Microsoft Commercial Licensing program. SCE can be purchased at any time, although the expiration of an existing Enterprise Agreement or Software Assurance commitment is a great time to evaluate whether SCE is the right vehicle for your server and cloud needs.

SCE replaces the Enrollment for Application Platform (EAP), Enrollment for Core Infrastructure (ECI) and the Enrollment for Microsoft Azure (EWA).

Key benefits of the Server and Cloud Enrollment

• 15% discount for new license and Software Assurance purchases
• 5% discount on Software Assurance renewals
• Management of Microsoft Azure resources with System Center is included for CIS commitments (some limitations apply)
• Best terms, conditions, and predictability for SCE products
• New subscription option
• Full Software Assurance benefits for all deployed licenses including new version rights
• Unlimited Problem Resolution Support for qualifying customers

Products in the Server and Cloud Enrollment

The Server and Cloud Enrollment offers four components:

1. Core Infrastructure
2. Application Platform
3. Developer Platform
4. Microsoft Azure

Choose any of these components individually or group them as needed. When choosing any of the first three components, Azure is also available.

Products in the different Microsoft Enterprise Agreement types and EAS

A Microsoft Enterprise Agreement allows licensing of a wide range of Microsoft products, but the availability differs between the different EA types and EAS:

The products are subject to change.

Software Assurance

Software Assurance is included with the Enterprise Agreement and provides a range of benefits to help you take full advantage of your investments in IT. A comprehensive program that includes a unique set of technologies, services, and rights to help deploy, manage, and use Microsoft products efficiently, Software Assurance keeps you up to date and ready to respond quickly to changes, new challenges, and opportunities.

Key advantages of Software Assurance include:

• Rights to new software releases and cost-efficient upgrades to help reduce software and services costs.
• Structured consulting engagements to plan for deployment of new on-premises and cloud-based IT initiatives.
• Access to unique technologies and use rights(!) to help support improved operational efficiency.
• Instructor-led technical training for IT pros and online learning for end-users to help boost productivity.
• Ways to spread payments over time to help align budgets.

CSP vs. EA: The Truth About Cost and Control

• Contract Commitment:
  CSP: No minimum user count. Commitment can be as low as month-to-month (or 1-year/3-year via NCE). You have the flexibility to start small and adjust as you go.
  EA: Typically a 3-year contract with Microsoft, often requiring 500+ users/devices minimum (for commercial EA). It’s a substantial commitment, usually chosen by mid-to-large enterprises ready to project their license needs long term. However, as of 2025, Microsoft might deny your organization getting an EA at all. Microsoft is trying to shift customers to CSP, and an EA is often rejected, if only cloud products are part of the proposed EA. If on-prem solutions are part of the contract proposal, then you have a better chance. Over the long term, EA is disappearing.
• Upfront vs Ongoing Costs:
  CSP: Pay as you go. Billing is usually monthly for whatever licenses you have active. No large upfront payment — good for cash flow, but costs can rack up over time if not managed (especially if you forget to remove unused licenses since they auto-renew).
  EA: Often involves an annual payment (or even upfront for multiple years in some agreements). You might pay a big chunk yearly, which can secure better pricing. It’s a capex vs opex consideration: EA can mean higher upfront spending, whereas CSP keeps it mostly as operational expense spread out.
• Pricing & Discounts:
  CSP: Pricing is generally based on standard list prices. Discounts in CSP are usually modest, if any, and come from the partner’s margin (Microsoft itself doesn’t typically discount CSP licenses for customers, except occasional promos). Large CSP orders don’t automatically get a volume discount from Microsoft – though a partner might offer you a discount, if you’re a big client for them, leaving the partner with a smaller piece of the pie.
  EA: Volume rules – at least in the past! With an EA, the more you bought, the better the pricing tier you reached. This is called “price level discounts”, and these price levels are A, B, C, D (based on quantity). These price levels are being eliminated starting November 1, 2025. Enterprises can negotiate special pricing, especially if they’re committing to a suite of products (e.g., Microsoft 365 E5 for 5,000 users + Azure spend, etc.). So per-license cost under EA can be significantly lower than CSP for the same product, once you hit certain scale. This is why a huge corporation typically wouldn’t license via CSP — it could be millions left on the table.
• Flexibility & True-ups/downs:
  CSP: As discussed, CSP is flexible in adding licenses (instantly) and removing them (at end of term, if annual; or anytime with monthly terms). You can also shift licenses between products easily in CSP (e.g., move a user from E3 to E5 mid-term by just upgrading subscription). No yearly true-up process; it’s continuous.
  EA: You generally fix a number of licenses at the start (your committed baseline). During the year, if you exceed that (add users or products), you do a true-up at the anniversary – reporting additional usage and paying for it retroactively for that year. If you reduce usage, you typically can’t decrease your paid count until the next renewal (end of the 3-year term for traditional EA, though some EAs allow limited “true-down” at anniversary for certain products). So flexibility mid-term is limited; EA is designed for stable or growing needs, not shrinkage. On renewal, you can adjust your quantities down or up and then commit anew for the next term.
• License Management & Administration:
  CSP: Managed via the partner and Microsoft’s cloud portals. It’s generally easier for day-to-day administration – add or remove licenses via a portal, changes reflect in real time or within a day. There’s no big yearly reconciliation form the customer has to send (the partner/Microsoft just charge for what’s used). Watch out though: If you click through your partner’s portal with consulting the expertise of your consultant, you might end up paying way more than you need. This is what we see: Clients switching to us for our licensing expertise often pay 10-30% too much because they selected wrong products, activated trial licenses while erasing promotional pricing, purchased too many licenses while not assigning all of them etc.
  EA: Comes with a bit more administrative burden. Microsoft provides tools (like the Volume Licensing Service Center and now the Microsoft 365 admin portals) to track usage, but you also have formal paperwork at anniversary (true-up order forms, etc.). Traditionally, licensing professionals or a partner (LSP) help manage an EA to make sure you’re compliant and not under-licensed. An LSP is required as Software Advisor between Microsoft and the customer, whether or not you ask a non-LSP for licensing advice. The EA also often includes Software Assurance tracking (ensuring you maintain SA, get your benefits, etc.), which is an extra layer of management.
• Included Benefits:
  CSP: Does not include Software Assurance (SA) by default. However, many SA benefits are less relevant with cloud subscriptions (for instance, you don’t need upgrade rights when you’re subscribing to the latest version via Microsoft 365). Some benefits like training days or support tickets that came with SA aren’t included in CSP, though a good partner may offer training or support as part of their service.
  EA: Software Assurance is typically included or available, bringing a host of benefits: training vouchers, planning services, support incidents, license mobility for servers, etc. If those benefits matter to you (they often do in large enterprises with hybrid setups), EA has an edge.
• Partner Involvement & Support:
  CSP: You must have a partner (even if it’s a Direct Market Reseller like a big online store, that’s still a partner of Microsoft). That partner provides your Tier-1 support. Good CSP partners will resolve most things and involve Microsoft for backend issues without you needing to intervene. But essentially, you’re outsourcing a lot of the licensing management to a partner. Ideally, the CSP-provided support is more cost-effective than the one offered from Microsoft in an EA, called Microsoft Unified Support.
  EA: You typically work with a Licensing Solution Provider (LSP) to sign an EA (like SCHNEIDER IT MANAGEMENT, which in our case we can do both EA and CSP (and many more)). The LSP handles the procurement and can offer advice, but your support for cloud services can come directly from Microsoft (especially if you have a Premier Support or Unified Support agreement). With an EA, you are a “direct customer” of Microsoft in terms of the licensing contract. You often get a Microsoft account manager or technical specialist assigned to your account once you’re big enough.

• For a lean small-to-mid business that values monthly billing and low commitment, CSP is usually the way to go.
• For a large enterprise dealing with thousands of licenses, hungry for discounts and with a stable outlook, EA can offer better control over long-term costs and includes valuable extras (but requires commitment and internal management).

Microsoft Enterprise Subscription Agreement (EAS) vs. Enterprise Agreement (EA)

Unlike the traditional Enterprise Agreement (EA), the Enterprise Subscription Agreement (EAS) offers even lower annual costs and the flexibility to increase or decrease the number of subscriptions on an annual basis, not only for Online Services, but also for on-premises products.

This ability to grow or downsize supports changes in workforce size and IT requirements. With an EAS you gain access to Microsoft online services and software for as long as you maintain your subscriptions.

Benefits of the Microsoft Enterprise Subscription Agreement (EAS)

• Best value: Maximize your investment in Microsoft technologies with best pricing and benefits.
  • Get the best savings by deploying a common IT platform across the organization.
  • Minimize upfront costs and budget more effectively by locking in pricing and spreading payments over three years.

• Flexible: Respond to the changing technological landscape by accessing the latest versions of online services and on-premises software.
  • Meet the unique requirements of your organization based on its size and technology needs.
  • Choose from Microsoft online services, on-premises software, or a mix of both and migrate at your own pace.
  • Access the latest software and technologies with Software Assurance.

• Manageable: Streamline license management with a single organization-wide agreement.
  • Simplify purchasing with predictable payments via a single agreement for online services and/or software.
  • Manage licenses centrally with online management tools.

Manage licensing throughout the life of your Enterprise Subscription Agreement (EAS) with SCHNEIDER IT MANAGEMENT as your Software Advisor and registered LSP:

• get best in class licensing consultancy
• get unlimited expert answers to your licensing questions
• get unlimited licensing simulations for your licensing scenarios
• get monthly meetings and simulations across buying programs for optimization
• get ongoing full-lifecycle management of your contracts

Let’s get started: https://www.schneider.im/services/microsoft-enterprise-agreement-services/.

Conclusion

A Microsoft Enterprise Agreement provides a cost-effective and easy way for organizations to acquire and manage Microsoft software licenses. For enterprises, it is recommended to choose a “Enterprise Subscription Agreement (EAS)”. An EAS offers the greatest benefits for organizations licensing 500+ users. Organizations can benefit from discounts and flexibility in licensing and better plan their IT costs.

We hope this article has been helpful to you. If you have any further questions or need a Microsoft Enterprise Subscription Agreement (EAS), please do not hesitate to contact us. We are registered LSP.

FAQs

What are the benefits of the Microsoft Enterprise Subscription Agreement (EAS)?

The Microsoft Enterprise Subscription Agreement (EAS) provides a cost-effective way for organizations to purchase and manage a large number of Microsoft licenses. It also provides flexibility and centralized management.

Can I purchase Microsoft software licenses under the Microsoft Enterprise Subscription Agreement (EAS) for a small organization?

The EAS is designed for organizations with more than 500 licenses. If you have a small organization, you may be eligible for the Microsoft Open Value License program or buy from a Cloud Solution Provider (CSP). To learn more, visit: https://www.schneider.im/software/microsoft/

How long does the Microsoft Enterprise Subscription Agreement run?

The Microsoft Enterprise Subscription Agreement (EAS) typically runs for three years.

How much can I save by purchasing Microsoft software licenses under the Microsoft Enterprise Subscription Agreement (EAS)?

The amount you can save by purchasing Microsoft software licenses under the EAS depends on the size of your organization and the number of licenses you purchase. However, the EAS offers volume discounts and predictable pricing, which can help companies save money on their software licenses.

Who can advise me on how to purchase the best Microsoft licensing program?

Microsoft does not advise companies on how to purchase types of Microsoft Enterprise Agreements. For this purpose, Microsoft has established Microsoft Licensing Solution Providers (LSP). Microsoft LSPs advise companies and optimize their licensing to keep costs down and ensure the optimal product selection in the right licensing program. The leading Microsoft partner in Enterprise Agreements is SCHNEIDER IT MANAGEMENT, whose experts advise you with their many years of Microsoft licensing expertise, optimize your costs and negotiate the best offer from Microsoft for you.

Where can I find out more about other Microsoft licensing programs?

You can find an overview of all Microsoft licensing programs with their peculiarities, requirements and benefits at https://www.schneider.im/software/microsoft.