Farewell 2025

One page left on the calendar. 2025 was quite a year for suppliers, and we are very curious to see what 2026 has in store. 

For Microsoft, one of the most impactful changes was the removal of Enterprise Agreement (EA) pricing levels for Online Services on November 1. Microsoft had hinted at this shift when they released the pricing structure for Copilot, which was priced identically across all levels. Now, all Online Services will be priced at Level A. All on-prem software will still have level A through D pricing, but on-prem products are making up less and less of overall Microsoft expenditures.

What does it mean?

· Increases for all EAs with over 2399 users.

· Approximately 6% for up to 5,999 users.

· 9% for up to 14,999 users.

· 12% for over 15,000 users.

What to expect next?

For the next six months, pseudo pricing levels “may” be in effect, as Microsoft may give you the level discount. After six months, as the fiscal year winds down for Microsoft, we fully expect that all EAs discounts will begin at Level A, regardless of the number of users. If your EA renewal is within 12 months, your renewal planning should be in hyperdrive, as it may be the most difficult EA negotiation ever.

Copilot? Copilot pricing has been softening as Microsoft pushes to increase market share. But the next 12 months will be crucial to see how competitive pressures affect pricing, and those competitive pressures are mounting. Microsoft will likely try to offset this by leaning on an old selling point – all of our products are integrated. That is up to each organization to decide, but at a cost of $30 per user per month, this is a decision that requires a definitive YES that Copilot is the right tool for you.

There are two other vital Microsoft negotiation points: Azure and Unified Services. Both are negotiable as there are alternatives. The Azure commitment agreement (MACC) has a number of negotiation points, but understanding current Azure concessions and how to achieve them is key. The same applies to Unified. Unified support agreements have been difficult to negotiate for years, which is one of the main reasons why we hired a former Unified account representative. He has helped our customers to understand the Unified pricing structure, possible concessions, and available alternatives.

To summarize, the forecast for Microsoft negotiations may be bleak in 2026. Green Cabbage can bring light to your EA, Unified, or CSP deals.

Learn more at https://www.greencabbage.com

Written by: Dan Pavlick VP of Cloud Services, at Green Cabbage