As organizations increasingly embrace cloud technologies to drive digital transformation, Microsoft’s cloud offerings, such as Microsoft 365 (M365) and Azure, are pivotal in reshaping how businesses operate, collaborate, and scale. While Microsoft's Enterprise Agreement (“EA”) has long been the go-to purchasing option for larger organizations, many customers are finding it more beneficial to purchase Microsoft 365 and Azure through a Cloud Solutions Provider (“CSP”). The CSP route provides a more flexible, scalable, and cost-effective solution compared to the traditional EA, offering a range of benefits to mid-market customers.
Flexibility and Scalability
One of the most compelling reasons to choose a Cloud Solutions Provider over the Enterprise Agreement is the enhanced flexibility and scalability it offers. With a CSP, businesses can easily adjust their licenses and services based on their needs. For example, if an organization experiences a growth spurt, it can quickly scale up its Azure or M365 subscriptions to match the increased demand. Similarly, if business requirements change or the organization needs to scale down, it can do so without the complexity or long-term commitments associated with an Enterprise Agreement.
In contrast, an EA typically requires a commitment to a fixed number of licenses over a period of three years. This can lead to over-provisioning, where businesses purchase more licenses than they actually need to ensure they meet the EA’s terms, which may result in unnecessary costs. Additionally, if the organization experiences a reduction in staff or usage, adjusting the EA can be cumbersome and time-consuming.
Cost Efficiency and Optimization
Cloud Solutions Providers often offer more competitive pricing and more flexible payment models compared to the rigid terms of an EA. CSPs typically provide subscription-based models, which allow organizations to pay only for what they use. This is particularly beneficial for businesses that have fluctuating workloads or seasonal demands, as they can adjust their subscriptions and consumption in real-time.
In contrast, Enterprise Agreements often require upfront commitments to large volumes of licenses or consumption. Businesses may end up paying for unused licenses, leading to inefficiencies in cost management. With CSPs, customers can take advantage of ongoing cost optimization through more dynamic pricing models. Additionally, CSPs often provide personalized advice and recommendations to help organizations make the most out of their subscriptions, further ensuring cost-effective cloud adoption.
Furthermore, Cloud Solutions Providers can offer valuable billing transparency, helping organizations to better track their usage and manage costs. This level of granularity and visibility into cloud expenditures is often difficult to achieve with the lump-sum payments and inflexible terms associated with the EA.
Tailored Support and Services
While an Enterprise Agreement does provide access to Microsoft support, the level of service that customers receive through a CSP is often far more personalized. CSPs are typically smaller, more agile providers that have a vested interest in the success of their clients. As such, they can offer tailored solutions, technical expertise, and proactive support that is more specific to the organization’s individual needs.
CSPs often have deeper technical knowledge and specialized resources to assist with cloud deployments, migrations, and ongoing management. They can provide bespoke consulting services, allowing businesses to optimize their use of Microsoft 365 and Azure. In contrast, large EA contracts may involve generalized support that is not as deeply aligned with the unique requirements of the business.
Additionally, many CSPs offer 24/7 support, which can be a game-changer for businesses that require immediate assistance outside regular business hours. This level of responsiveness is typically more challenging to obtain under an EA, where support may be less timely or require navigating through complex channels.
Simplified Licensing and Billing
Microsoft’s EA model, while designed for large enterprises, can be cumbersome and difficult to manage. EA customers are often required to deal with complex licensing structures, tracking usage, and managing multiple billing cycles. Managing a large portfolio of licenses and services can become a burden, particularly for companies with rapidly evolving cloud needs.
With a Cloud Solutions Provider, businesses can benefit from simplified billing and licensing models. CSPs typically offer consolidated billing, where organizations receive a single, easy-to-understand invoice for their entire Microsoft cloud consumption. This reduces the complexity of managing multiple subscriptions and licenses under an EA.
Additionally, CSPs have the capability to bundle different Microsoft services and even third-party solutions into a single package, offering customers a more integrated approach to cloud procurement. This bundling can streamline purchasing processes reducing administrative overhead and ensuring that organizations are able to leverage all the cloud services they need without having to manage multiple contracts.
Better Control and Governance
A significant benefit of purchasing through a Cloud Solutions Provider is the increased level of control and governance that businesses can exert over their cloud services. CSPs often provide enhanced tools for monitoring and managing cloud usage, giving organizations greater insight into how their resources are being used and helping to prevent unexpected overages or misuse.
Additionally, CSPs often assist organizations in managing their cloud compliance and security policies. This can be especially important for businesses in highly regulated industries, where adhering to data protection laws and compliance standards is critical. The more personalized and hands-on approach from CSPs can ensure that organizations stay within the bounds of legal and regulatory requirements while optimizing their cloud environment.
Accelerated Deployment and Innovation
Cloud Solutions Providers are generally able to offer faster deployment times than Enterprise Agreements. The streamlined purchasing and provisioning process through a CSP enables businesses to quickly adopt Microsoft’s latest technologies without the waiting period that can sometimes accompany EA purchases. CSPs can also offer access to innovative tools and services, which can enhance the organization’s cloud capabilities.
Furthermore, CSPs can provide ongoing updates and guidance on new features and innovations that Microsoft releases. This enables businesses to stay at the forefront of technology, while EA customers may find it more difficult to take advantage of new capabilities due to the rigidity of their contracts and the lack of personalized service.
| Enterprise Agreement (EA) | Cloud Solution Provider (“CSP”) | |
| Targeted Size Organization | 1,000+ | Any |
| Payment | Upfront or Annually | Monthly or Annual |
| True-up Billing | Annually | N/A |
| Contract Term | 3 Years | Monthly or Annual |
| Support | Not Included | Included |
| Products | All Products | M365, Azure, Windows, CALs, SQL |
| Adding or Removing Users | True-up | Anytime |
| Flexibility | No credits for unmet commit | Only pay for what’s used |
| Cost Control & Management | Customer | Customer + Partner |
| Minimums | Required | No minimums |
Leveraging Helient CSP
It is imperative that organizations prepare for the significant changes in 2025. To facilitate a smooth transition, it is recommended to collaborate with experts who can provide comprehensive guidance throughout the process. Helient CSP, has successfully helped numerous companies in navigating the complexities of licensing transitions because we:
By staying informed and proactive, organizations can successfully navigate these changes, using the CSP to their advantage. If you have any specific questions or need further assistance, please contact our team of experts.