Microsoft EA • Case Study

U.S. Technology Firm: Microsoft MPSA Optimization Avoids 17% Cost Escalation and Enhances Cloud Agility

How Redress Compliance helped a 400-employee U.S. SaaS firm avoid a 17% cost escalation by optimising its Microsoft MPSA instead of moving to an Enterprise Agreement — while cutting Azure costs by 10% and securing 2-year price protection.

Microsoft LicensingCase StudyTechnology / SaaSUnited States
This case study is part of our comprehensive Microsoft Enterprise Agreement Guide. For the full pillar overview including EA renewal strategies, negotiation tactics, and licensing models, start there.
17%Cost escalation avoided by staying on optimised MPSA
~50Unused licences identified and retired
10%Azure hosting costs reduced
2 yrPrice protection secured on M365 licences
01

Background

Context+

A U.S. software technology firm based in Seattle, with 400 employees, was managing its Microsoft licences through a Microsoft Products and Services Agreement (MPSA) rather than a traditional Enterprise Agreement.

Microsoft Azure

Primary hosting platform for the company’s SaaS applications

Microsoft 365

Business and E3 licences for internal productivity (~450 users)

MPSA Model

Transactional volume licensing — purchase as needed, no multi-year commitment

The MPSA was originally chosen for its flexibility during rapid growth. By 2025, headcount and cloud usage had grown significantly, and Microsoft was encouraging a move to an Enterprise Agreement. The firm engaged Redress Compliance to assess whether optimising the MPSA or transitioning to an EA/MCA would be the best strategy.

02

Challenges

Complexity+
1
Unnecessary EA Cost Escalation

Microsoft was pushing the firm to “graduate” to an Enterprise Agreement. The preliminary EA proposal required commitment to licence quantities and Azure spend for three years — a projected 17% cost increase over the current MPSA model.

2
Flexibility vs. Discount Trade-Off

The EA offered deeper unit pricing but rigid 3-year commitments. As a tech company that frequently pivoted resources between projects (sometimes using open-source tools), the firm valued the MPSA’s ability to add or drop licences dynamically.

3
Licence Management Waste

Under MPSA, purchases were ad hoc and spread across departments. About 50 unused licences still incurred cost — developers’ test environments, former employees’ assignments. No centralised view existed.

4
Azure Costs Rising Unpredictably

Azure usage was growing unpredictably as new SaaS customers onboarded. The EA’s promised Azure discount came with a fixed annual commitment. The firm feared overcommitting but also didn’t want to pay retail rates.

03

How Redress Compliance Helped

Approach+

1. Licensing Model Analysis

Redress conducted a thorough comparison of staying on MPSA versus moving to an Enterprise Agreement or the newer Microsoft Customer Agreement (MCA). Using 18 months of actual licence purchase history and Azure consumption data, the analysis revealed the firm’s ~450 M365 users were below the 500-user threshold where EAs typically make sense. Committing to a 3-year EA would mean paying for services they might not fully use.

Related Guide

For a framework on choosing between MPSA, EA, MCA, and CSP, see Navigating Microsoft Negotiation Strategies.

2. MPSA Spend Optimization

Redress identified approximately 50 unused licences and retired them. They centralised procurement through a single owner to prevent duplicate purchases, and negotiated better reseller discounts for a bulk M365 licence purchase to support planned hires.

Microsoft’s EA Proposal
  • 3-year rigid commitment
  • 17% cost increase over current MPSA
  • Fixed Azure annual spend
  • Bundled services (many unused)
  • Deeper unit pricing but inflexible
Redress-Optimised MPSA
  • Flexible — add/drop licences as needed
  • Costs held flat (slight decrease despite growth)
  • Azure via CSP at 5% discount + Reserved Instances
  • ~50 unused licences retired
  • 2-year M365 price protection secured

3. Azure Cost Management

Redress examined whether Azure benefits could be secured without an EA. They migrated some Azure subscriptions to a Cloud Solution Provider (CSP) offering a 5% discount on pay-as-you-go rates. They also recommended Azure Reserved Instances for 24/7 databases (cutting those costs 20–30%). Combined, these optimisations reduced the Azure hosting bill by approximately 10% without any long-term cloud commitment.

4. Negotiation with Microsoft

Redress accompanied the firm in discussions with Microsoft, effectively negotiating not to sign an EA unless it truly made sense. Microsoft responded with concessions under the MPSA/MCA route: 2-year price protection on M365 licences, an MPSA spending-account rebate for reaching certain thresholds, and assurances that any future MCA migration would carry over existing investments seamlessly.

5. Future Roadmap

Redress developed a forward-looking plan with triggers (headcount exceeding 600, annual spend crossing specific thresholds) that would signal when an EA genuinely becomes advantageous — ensuring the firm enters any future EA negotiation on its own timeline and terms.

04

Outcome and Impact

Results+
17% Cost Escalation Avoided

By not signing an over-scoped EA, yearly Microsoft spend under the optimised MPSA decreased slightly even as the firm grew. Hundreds of thousands of dollars over three years freed for other initiatives.

Full Agility Retained

Licences can be added or dropped as projects start or end. Cloud usage scales without worrying about under-fulfilling a contract. A perfect fit for agile development and DevOps culture.

10% Azure Cost Reduction

CSP partner discounts + Reserved Instances cut Azure hosting costs by ~10%, all without a long-term commitment. SaaS product margins improved correspondingly.

Strategic Licensing Roadmap

Clear decision triggers for when an EA would genuinely make sense. Microsoft’s sales tactics won’t easily sway them — they’ll make that decision based on data, not pressure.

05

Client Quote

Testimonial+

“We’re a tech company that lives and breathes agility — the last thing we wanted was to get stuck in a giant contract we didn’t need. Redress Compliance showed us that bigger isn’t always better when it comes to Microsoft agreements. We avoided a 17% cost increase and instead are saving money by only buying what we need, when we need it. Redress even secured extra discounts and price locks for us, all while we kept our freedom to scale on our terms.”

— CEO, U.S. Technology Firm

Frequently Asked Questions

When does a Microsoft EA make more sense than an MPSA?+

Generally, an EA becomes cost-effective once you exceed ~500 users with stable or growing Microsoft requirements. Below that threshold, or for organisations with variable needs, the MPSA or MCA often provides better value due to flexibility. The key is comparing total cost of ownership over three years — including licences you may not fully use under an EA’s minimum commitment. In this case, 450 users with variable needs made the MPSA the clear winner.

Can you get Azure discounts without an Enterprise Agreement?+

Yes. Azure Reserved Instances (1- or 3-year commitments on specific resources) can save 20–30% on compute costs under any agreement type. Cloud Solution Provider (CSP) partners often offer 5–10% discounts on pay-as-you-go rates. Azure Savings Plans provide commitment-based discounts with flexibility across regions and instance types. In this case, Redress combined CSP pricing and Reserved Instances to achieve a 10% overall Azure reduction without any EA.

What is price protection, and can it be negotiated outside an EA?+

Price protection locks in current pricing for a specified period, shielding you from Microsoft’s periodic list-price increases. It’s a standard EA feature, but can sometimes be negotiated under MPSA or MCA arrangements as well. In this case, Redress secured a 2-year price lock on M365 licences outside of an EA — a significant concession that protected the firm from upcoming price increases.

How do you identify and retire unused Microsoft licences?+

A comprehensive licence audit compares assigned licences against actual usage data (sign-in activity, feature utilisation, last-active dates). Common waste sources include: former employees with active assignments, test/dev environments with production licences, duplicate assignments, and over-provisioned SKUs (e.g., E5 where E3 suffices). In this case, ~50 licences were identified as unused and retired immediately.

What is the Microsoft Customer Agreement (MCA) and how does it differ from MPSA?+

The MCA is Microsoft’s newer agreement framework, primarily designed for cloud purchases. It’s a pay-as-you-go model with simplified terms. Unlike MPSA, MCA is increasingly the default for Azure and Microsoft 365 cloud subscriptions. Redress ensured that if the firm transitioned to MCA for Azure, all existing investments (Reserved Instances, licences) would carry over seamlessly. The two models can coexist during a transition period.

Unsure if a Microsoft Enterprise Agreement is Right for Your Business?

We’ll help you analyse your options — MPSA, CSP, MCA, or EA — and ensure you get the best pricing without unnecessary commitments. Make a confident, informed decision with an independent expert on your side.

Part of the Microsoft EA Series

This case study is part of our Microsoft Enterprise Agreement Guide pillar. Explore related case studies and guides:

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Related Resources & Guides

FF

Fredrik Filipsson

Co-Founder, Redress Compliance

Former Oracle, SAP, and IBM — now helping enterprises worldwide negotiate better software deals. 20+ years in enterprise licensing, 500+ clients served.

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