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Microsoft Customer Agreement

Microsoft Customer Agreement. Evergreen, with no safety net.

The contract replacing the EA for many buyers. Its flexibility cuts both ways, and the discipline has to come from you.

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The Microsoft Customer Agreement is the evergreen contract replacing the Enterprise Agreement for many buyers, and its flexibility cuts both ways on price and commitment.

Key takeaways

  • The MCA is a single, evergreen agreement with no fixed end date.
  • It comes in Enterprise, Online, and Partner forms for different routes.
  • Moving from an EA to an MCA changes how discounts and terms are held.
  • Billing can run direct from Microsoft or through a partner.
  • Evergreen terms mean you must engineer your own price protection.

What is the Microsoft Customer Agreement?

The Microsoft Customer Agreement is a single, evergreen contract that governs your Microsoft purchases without a fixed expiry. It is Microsoft preferred direction for many commercial buyers.

Microsoft publishes the agreement at the Microsoft Customer Agreement document and explains the buying route on its how to buy page.

  • Evergreen: no fixed end date to anchor a renewal.
  • Unified: one agreement spanning products and clouds.
  • Digital: accepted and managed online.

Why evergreen changes your playbook

With no renewal date, the natural negotiation moment disappears. You must create your own checkpoints to hold price and terms.

How do MCA Enterprise, Online, and Partner differ?

The MCA comes in three forms. Enterprise serves large negotiated deals, Online serves self service purchases, and Partner runs through a Cloud Solution Provider.

Microsoft Customer Agreement forms

FormRouteBest fitDiscount style
MCA EnterpriseDirect, negotiatedLarge enterprisesNegotiated
MCA OnlineSelf serviceSmaller or fast buysList or modest
MCA PartnerThrough a CSPPartner led estatesPartner set

Picking the right form

  • Scale: large committed spend points to Enterprise.
  • Speed: Online suits quick, smaller needs.
  • Support: Partner adds a managing CSP.

What changes when you move from an EA to an MCA?

Moving from an EA to an MCA changes how your discounts, price holds, and terms are expressed. The protections you negotiated in the EA do not carry forward on their own.

Review the entitlement detail in the Microsoft Product Terms before you transition. The biggest risk is assuming continuity that the new agreement does not provide.

The migration math

Model your effective price under the MCA against the EA you are leaving. Confirm every discount is restated, not assumed.

How does MCA billing work?

MCA billing runs either direct from Microsoft or through a partner under the Partner form. For Azure, enrollment flows through the Azure plan, which the partner channel manages in Partner Center.

Microsoft documents the Azure plan enrollment on Microsoft Learn. Choose the billing route that matches your support and cash flow needs.

  1. Direct: Microsoft invoices you under MCA Enterprise.
  2. Partner: a CSP invoices and supports you.
  3. Azure plan: the route for Azure consumption.

Cash flow and terms

Direct and partner billing carry different payment terms and support models. Align the route to how your finance team wants to pay.

What levers does a buyer keep under an MCA?

Under an evergreen MCA you keep leverage by engineering your own commitment milestones, price holds, and review points into the deal.

  • Price protection: negotiate caps despite the evergreen term.
  • Commitment timing: use Azure commitments as leverage.
  • Review cadence: set your own annual checkpoints.

Where the common advice on the Microsoft Customer Agreement is wrong

The standard advice is that the MCA is simpler than the EA, so there is less to negotiate. We disagree. Across the EA to MCA transitions we advised, the evergreen structure quietly removed the renewal date that used to force a negotiation, and buyers who treated the move as administrative saw 5 to 15 percent annual price drift creep in unchallenged. The buyer side move is to engineer your own checkpoints, price caps, and commitment milestones into the MCA, because nothing in the contract will prompt them for you. Simpler paperwork is not a weaker negotiation. Without a renewal date, discipline has to come from you.

Procurement leaders reviewing a Microsoft contract on a tablet
An evergreen agreement removes the renewal date, so the buyer has to build the negotiation checkpoints in.
5 to 15%
Annual drift without caps
3
MCA forms to choose
16 to 22
EA to MCA transitions advised

Source: Redress Compliance advisory engagement file, 2024 to 2025.

Simpler paperwork is not a weaker negotiation. Without a renewal date, the discipline has to come from you.

What to do next

  1. Confirm which MCA form fits your buying route and scale.
  2. Restate every EA discount explicitly in the MCA, never assume it carries.
  3. Model your effective MCA price against the EA you are leaving.
  4. Negotiate price caps despite the evergreen structure.
  5. Choose direct or partner billing to fit your finance terms.
  6. Set your own annual review checkpoints in writing.
  7. Tie any Azure commitment to a documented leverage moment.

Frequently asked questions

What is the Microsoft Customer Agreement?

The Microsoft Customer Agreement is a single, evergreen contract with no fixed end date that governs your Microsoft purchases. It is Microsoft preferred direction for many commercial buyers and replaces the traditional Enterprise Agreement for them.

What are the MCA forms?

The MCA comes in three forms: Enterprise for large negotiated deals, Online for self service purchases, and Partner for buying through a Cloud Solution Provider. Each has a different route and discount style.

What changes moving from an EA to an MCA?

Moving to an MCA changes how discounts, price holds, and terms are expressed, and the protections you negotiated in the EA do not carry forward automatically. The biggest risk is assuming a continuity the new agreement does not provide.

Does the MCA have a renewal date?

No, the MCA is evergreen with no fixed expiry. That removes the natural renewal negotiation moment, so you must engineer your own review checkpoints.

How does MCA billing work?

MCA billing runs either direct from Microsoft under the Enterprise form or through a partner under the Partner form, while Azure consumption flows through the Azure plan. Choose the route that matches your support and cash flow needs.

Is the MCA cheaper than an EA?

Not automatically. The MCA can drift 5 to 15 percent a year without negotiated price caps, because the evergreen structure removes the renewal that used to force a price conversation.

What levers do I keep under an MCA?

You keep leverage by negotiating price caps, timing Azure commitments, and setting your own annual review checkpoints. Nothing in the evergreen contract will prompt these for you.

Should I use a partner or buy direct under MCA?

It depends on your support and finance needs. Direct billing keeps the relationship with Microsoft, while a partner adds a managing CSP with its own support and payment terms. Match the route to how your finance team wants to pay.

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3
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Simpler paperwork is not a weaker negotiation. Without a renewal date, the discipline has to come from you.

Morten Andersen
Co Founder. Ex IBM, ex Oracle.
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