The Enterprise Agreement is still the largest Microsoft enterprise commercial vehicle in 2026. Read the full buyer side guide. Structure, enrolments, level discounts, true ups, SA mechanics, and the renewal envelope that beats the LSP default.
The Microsoft Enterprise Agreement is a 36 month commitment between Microsoft and an enterprise customer. The EA covers a chosen product set at a chosen level for the term. The level discount, the SA benefits, and the price protection are the three structural advantages. The annual true up is the commercial mechanic that adds users at the EA price.
This guide reads as the full framework. Pair it with the EA renewal playbook, the EA negotiation guide, the EA versus MCA renewal guide, and the MCA explained article.
The Enterprise Agreement consists of three layers. The master agreement, the enrollment, and the order. Each layer has a distinct legal role and a distinct negotiation surface.
The Enterprise Enrollment names the customer, the LSP partner, the term, the level, and the product set. Product enrolments cover Microsoft 365, Azure, Dynamics 365, and specific server products. Each product enrollment carries its own terms, true up cycle, and discount mechanics.
EA enrolments evolve as Microsoft restructures the catalog. The 2026 enrollment set covers four primary product enrolments under the master Enterprise Enrollment.
| Enrollment | Covers | Term |
|---|---|---|
| Enterprise Enrollment | Master 36 month commitment | 36 months |
| Microsoft 365 enrollment | Office, EMS, Windows, Security E5 | 36 months |
| Dynamics 365 enrollment | Sales, Service, Finance, Supply Chain, HR, Project | 36 months |
| Server and Cloud Enrollment | Windows Server, SQL Server, System Center, Azure | 36 months |
| Azure enrollment | Azure consumption commitment | Aligned to EA |
EA level discount is the structural saving on the EA. The level depends on the size of the qualified estate. Level A is the smallest, Level D is the largest. Each step deepens the discount band.
| Level | Qualified Devices and Users | Discount band |
|---|---|---|
| A | Up to 2,399 | Baseline |
| B | 2,400 to 5,999 | Deeper |
| C | 6,000 to 14,999 | Deeper still |
| D | 15,000+ | Deepest |
The platform commitment is a separate lever inside the EA. The buyer commits to deploy a defined platform across all qualified seats, in exchange for an additional discount layer typically 15 percent deep. The three classic platform commitments are M365, Windows Enterprise, and CAL.
Platform commitment trades flexibility for discount. The buyer commits the platform across every qualified seat, even where some seats do not need the platform. Many estates pay for the platform on seats that never deploy it. The buyer side response reads the qualified seat count carefully and tests the platform commitment math against actual use.
The annual true up is the mechanism that aligns the EA seat count with actual use. Each year the LSP partner counts the deployed seats. Increases bill at the EA price. Decreases under most enrolments do not refund.
Software Assurance attaches to on premise perpetual licenses within the EA. SA delivers upgrade rights, deployment planning services, training vouchers, and access to specific cloud benefits like Hybrid Benefit on Azure.
The Enterprise Agreement Subscription, or EAS, is the subscription variant of the EA. EAS prices lower than the perpetual EA per year, but the licenses do not become perpetual at the end of the term. The choice trades long term residual value for lower annual cost.
| Dimension | EA perpetual | EAS subscription |
|---|---|---|
| License model | Perpetual with SA | Subscription only |
| Annual cost | Higher | Lower |
| End of term | Keep perpetual licenses | Licenses expire |
| Decreases allowed | No | Yes at anniversary |
| Best fit | Stable long term estates | Variable estates, cloud heavy |
The EA renewal is the single largest negotiation surface on the Microsoft commercial relationship. The buyer side envelope reads the level math, the platform commitment, the SA mix, the EAS choice, and the LSP partner relationship.
The eight step checklist below moves an EA renewal from the LSP default quote to a buyer side framework.
Yes. The Enterprise Agreement remains a valid commercial vehicle in 2026 for qualifying enterprise customers. Microsoft has signaled long term strategic preference for the MCA E direct contract, but the EA continues to be sold at qualifying scale through LSP partners. The EA is most commonly retained at customers above 5,000 seats with stable, predictable estates.
The level is calculated from Qualified Devices and Qualified Users at the enrollment level. Each threshold represents a step in the discount band. The buyer side response often pushes toward the next threshold to unlock the deeper discount, by counting affiliates, subsidiaries, or related entities into the qualified estate.
Yes. Software Assurance is a renewable benefit attached to perpetual licenses. SA can be dropped at the EA anniversary if the buyer no longer needs the benefits. Dropping SA reduces the annual cost but forfeits upgrade rights, Hybrid Benefit, and other entitlements. The buyer side response audits actual SA benefit use before recommending drops.
EAS licenses expire at the end of the subscription term. There is no perpetual residual value. The buyer either renews the EAS subscription, moves the seats to MCA subscriptions, or replaces them with a different product. EAS fits estates that have committed to cloud and do not value the perpetual residual on the on premise products.
The LSP partner is named in the Enterprise Enrollment. Changing the LSP mid term requires a transition novation between Microsoft, the outgoing LSP, and the incoming LSP. The change is feasible but rare during the 36 month term. Most LSP changes happen at renewal, where the buyer re bids the partner role as part of the new agreement.
The annual uplift on EA prices is negotiable. The standard ask from Microsoft is 5 to 8 percent annually. The buyer side response negotiates this down to 0 to 5 percent or to a CPI linked cap. The uplift is more material on multi year EAs with large product sets, where small percentage differences compound across the term.
Redress runs the EA renewal as a 9 to 12 month engagement. The work pulls the qualified seat baseline, audits SA benefits, scores the platform commitment, tests EAS conversion, re bids the LSP partner, models the MCA migration anchor, and prepares the contract red line list. Most engagements deliver 16 to 34 percent saving against the LSP default quote.
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A buyer side framework for the Microsoft Enterprise Agreement renewal. Level math, platform commitment, SA right sizing, EAS conversion, LSP partner re bid, MCA migration anchor, and the red line list used across five hundred plus enterprise software engagements.
Independent. Buyer side. Built for CIOs and procurement leads renewing the EA in the next 24 months, considering EAS conversion, or running a hybrid Microsoft commercial strategy.
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Open the Paper →We re bid the LSP partner, anchored Microsoft against an MCA migration quote, dropped SA where benefits were unused, and renewed the EA at a price 21 percent below the default LSP quote. The price file held for the 36 month term across 18,000 seats.
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