The Microsoft Enterprise Agreement (EA) is the load bearing Microsoft enterprise commercial framework. The Microsoft Customer Agreement Enterprise (MCA E) is the strategic transition framework Microsoft positions as the future state.
Most enterprise customers run their Microsoft estate across one of two commercial frameworks. The EA carries a three year commitment with an annual true up. The MCA E carries a three year commitment with monthly billing and no true up. This article compares the two across pricing model, term length, billing cadence, true up, annual escalator, level pricing, and the broader Microsoft commercial transition framework.
EA vs MCA E at a glance
| Dimension | EA | MCA E |
|---|
| Pricing model | Level A to D banded | List minus negotiated |
| Typical discount band | 15 to 40 percent (Level D) | 5 to 20 percent |
| Term | Three year | Three year, monthly billed |
| Billing cadence | Annual on anniversary | Monthly against consumption |
| True up | Annual, up only | None (consumption billed) |
| Annual escalator | 0 to 10 percent at renewal | List adjusted on Microsoft cadence |
| Enrollment vehicle | Microsoft Enterprise Enrollment | Microsoft Customer Agreement |
Read this alongside the Microsoft services practice, the Microsoft knowledge hub, the Microsoft MCA transition landing, the Microsoft EA Renewal Playbook, the Microsoft EA discount levers, and the Benchmarking Microsoft EA discounts article.
The Microsoft EA and MCA E framework
The Microsoft Enterprise Agreement is the Microsoft enterprise commercial framework on a three year commitment.
- EA scope: typically anchors Microsoft 365, Windows, Azure, Dynamics 365, and Microsoft Server licensing.
- MCA E scope: typically anchors Microsoft 365 and Azure consumption, on a three year commitment with monthly billing.
- EA enrollment: executed under the Microsoft Enterprise Enrollment.
- MCA E enrollment: executed under the Microsoft Customer Agreement.
The buyer side move is to anchor the actual customer commercial choice against the renewal calendar, the consumption profile, and the broader Microsoft strategic transition framework. Read the related Microsoft MCA transition landing.
The pricing model framework
The Microsoft Enterprise Agreement anchors against level pricing. The MCA E anchors against list minus negotiated discount.
EA level pricing bands
| Level | Seat band | Typical discount on list |
|---|
| Level A | 250 to 2,399 users | Removed at 2024 renewal |
| Level B | 2,400 to 5,999 users | Removed at 2024 renewal |
| Level C | 6,000 to 14,999 users | Reduced |
| Level D | 15,000 plus users | 15 to 40 percent |
The MCA E typically delivers between five and twenty percent against the Microsoft list framework, with discount weight on multi year commit, Azure consumption, and workload mix rather than seat count. The buyer side move is to compare the actual customer EA level pricing outcome against the actual customer MCA E pricing outcome on the same seat estate. Read the related Benchmarking Microsoft EA discounts article.
The term length framework
The broader Microsoft Enterprise Agreement framework typically anchors against a broader three year commitment framework, with the broader EA framework typically renewing on a broader three year cycle. The broader MCA E framework typically anchors against a broader three year commitment framework with broader monthly billing, with the broader MCA E framework typically auto renewing on a broader thirty day notice framework. The broader EA framework requires the broader Microsoft Enterprise Enrollment framework, while the broader MCA E framework requires the broader Microsoft Customer Agreement framework. The buyer side move is to anchor the actual customer term length framework against the actual customer Microsoft contractual annual commitment framework. Read the related Microsoft EA Renewal Playbook.
The billing cadence framework
The broader Microsoft Enterprise Agreement framework typically anchors against the broader annual billing framework, with the broader EA framework typically billing on a broader anniversary date framework. The broader Microsoft Customer Agreement Enterprise framework typically anchors against the broader monthly billing framework, with the broader MCA E framework typically billing on a broader monthly invoice framework against actual consumption. The broader monthly billing framework delivers more flexibility but more administrative overhead than the broader annual billing framework. The buyer side move is to anchor the actual customer billing cadence framework against the actual customer Microsoft administrative framework, the actual customer Microsoft cash flow framework, and the broader actual customer Microsoft contractual framework. Read the related Microsoft vendor management toolkit.
The true up framework
The broader Microsoft Enterprise Agreement framework typically anchors against the broader annual true up framework, with the broader EA true up framework typically anchored against the broader actual customer EA anniversary date framework. The broader EA true up framework typically anchors the broader incremental user framework, the broader incremental device framework, and the broader incremental qualified user framework against the broader Microsoft EA framework. The broader Microsoft Customer Agreement Enterprise framework does not have a broader true up framework, with the broader MCA E framework anchoring against the broader monthly consumption framework directly. The buyer side move is to anchor the actual customer EA true up framework against the actual customer Microsoft user framework. Read the related Microsoft EA discount negotiation levers.
The annual escalator framework
The broader Microsoft Enterprise Agreement framework typically anchors against the broader annual escalator framework on the broader EA renewal cycle, with the broader EA escalator framework typically anchored between zero and ten percent against the broader prior period framework. The broader Microsoft Customer Agreement Enterprise framework anchors against the broader monthly list framework directly, with the broader MCA E framework subject to the broader Microsoft list framework adjustment cadence. Microsoft has announced broader 2026 price increases that anchor against both the broader EA framework and the broader MCA E framework. The buyer side move is to anchor the actual customer escalator framework against the actual customer Microsoft renewal framework. Read the related 2026 Microsoft price increase preparation.
The Microsoft commercial transition framework
The broader Microsoft commercial transition framework anchors the actual customer Microsoft commercial framework against the broader Microsoft strategic transition framework. Microsoft has been positioning the broader MCA E framework as the broader strategic successor framework to the broader EA framework, with the broader MCA E framework typically positioned as the broader future state framework. However, the broader MCA E framework typically does not deliver the broader EA level pricing framework or the broader EA true up framework, which can deliver material commercial complexity at the broader actual customer Microsoft renewal framework. The buyer side move is to anchor the actual customer transition framework against the actual customer Microsoft commercial economics framework, the actual customer Microsoft administrative economics framework, and the broader actual customer Microsoft strategic framework. Read the related Microsoft MCA transition landing.
How we engage on EA versus MCA E
Redress engages on the EA versus MCA E choice across three engagement modes.
- Microsoft commercial assessment. Compares the actual customer EA outcome against the MCA E outcome on the same seat estate, with level pricing, true up, and renewal calendar modeled.
- Microsoft EA negotiation. Runs the contractual annual commitment, EA discount stack, true up, and annual escalator at the renewal table.
- Microsoft Vendor Shield. Always on multi vendor advisory across the Microsoft estate and the wider publisher set.
Read the related Vendor Shield, the Renewal Program, and the Benchmarking programs.
Redress is independent. Buyer side. Industry Recognized. Five hundred plus enterprise software engagements. $2B+ in client spend under advisory. Eleven vendor practices. One hundred percent buyer side. Read the related About Us page, the management team page, the locations page, and the contact page.
