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Microsoft Enterprise Agreement vs MPSA: A Comparative Analysis

Introduction to Microsoft Enterprise Agreement vs MPSA

  • Microsoft Enterprise Agreement (EA):
    • Designed for large organizations (250+ users/devices).
    • Offers volume licensing with customizable options.
    • Includes Software Assurance benefits.
    • 3-year agreement term.
  • Microsoft Products and Services Agreement (MPSA):
    • Suitable for medium to large organizations.
    • Flexible purchasing program without the need for a long-term contract.
    • Consolidates purchase of Microsoft services and software.
    • No minimum purchase requirements.

1. A Refresher on Microsoft Licensing

Microsoft offers a variety of licensing agreements to cater to organizations of all sizes and types.

Each agreement provides flexible options for the procurement and management of Microsoft software and services, allowing for the optimal utilization of resources.

2. Microsoft Enterprise Agreement: An Outline

The Microsoft Enterprise Agreement is primarily designed for large organizations with 500 or more users or devices.

It offers the most value to organizations that require a manageable volume licensing program that allows them to purchase cloud services and software licenses under a single agreement.

Key features of the Microsoft Enterprise Agreement include:

  • Cost-Efficient: Significant upfront cost savings for large-scale deployments compared to other licensing agreements.
  • Simplified Management: All users or devices are covered under the agreement, facilitating easy license management.
  • Flexible: Allows adding and adjusting products and services throughout the agreement term.

3. Microsoft Products and Services Agreement (MPSA): What Is It?

The MPSA is a licensing solution that simplifies purchasing Microsoft products and services through a non-expiring agreement.

It merges the benefits of the Microsoft Enterprise Agreement and Microsoft Select Plus (retired in 2015), offering greater flexibility to organizations of different sizes.

Significant benefits of MPSA include:

  • Simplicity: MPSA unifies the terms and conditions for all types of purchases and includes an improved purchasing portal.
  • Flexibility: It allows organizations to buy cloud services and on-premises software in a single agreement without committing to an organization-wide purchase.
  • Better Control: With MPSA, businesses can better manage their assets and expenditures using the Microsoft Volume Licensing Center.

4. Microsoft Enterprise Agreement vs MPSA: Highlighting the Differences

The choice between the Microsoft Enterprise Agreement and MPSA largely depends on the size of your organization, the volume of Microsoft products needed, and your organization’s specific IT requirements.

Size and Scope: While the Enterprise Agreement is designed for larger organizations with 500+ users or devices, MPSA offers a more flexible approach for organizations of various sizes.

Commitment: The Enterprise Agreement requires a three-year commitment with upfront payment, while MPSA offers more flexibility, allowing organizations to buy only what they need when needed.

Purchase Types: Both the Enterprise Agreement and MPSA allow for the purchase of software and cloud services. However, MPSA offers a more seamless purchase experience by integrating these under a single agreement.

5. FAQs on Microsoft Enterprise Agreement vs MPSA

Should my business switch from an Enterprise Agreement to MPSA?

Transitioning from an Enterprise Agreement to an MPSA largely depends on the size and needs of your business. If your organization prefers more flexible, non-commitment-based procurement, MPSA might be a suitable option.

Can I purchase both on-premises software and cloud services through MPSA?

Yes, MPSA allows organizations to purchase both on-premises software and cloud services under a single agreement, offering more flexibility and a simplified procurement process.


  • Fredrik Filipsson

    Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, enhancing organizational efficiency.