7 Expert Tips to Navigate Microsoft Licensing Changes in 2025

Microsoft is shaking up its licensing model in 2025—and if you’re not ready, you could face unexpected costs or disruptions. From the phase-out of Enterprise Agreements (EAs) to price hikes for key products like Power BI and Microsoft 365, understanding these changes is crucial. Here’s what you need to know to optimize your strategy and keep your Microsoft licensing efficient and cost-effective.

1. Prepare for the Phase-Out of Enterprise Agreements (EAs)

Beginning in January 2025, Microsoft will gradually phase out cloud-based EAs for some customers. Those customers can transition to the Cloud Solution Provider (CSP) Program.

• Cloud Solution Provider (CSP) Program: The CSP model allows small to mid-sized businesses to streamline Microsoft licensing and gain added flexibility. Through the CSP program, organizations benefit from simplified renewals, tailored support, and the ability to adapt their licensing quickly as needs evolve.
• By working with CSP partners like MicroAge, businesses can simplify Microsoft 365 renewals under NCE licensing, optimize costs, and receive ongoing support to ensure their licenses align with business goals.

As part of this transition, Microsoft will notify customers directly at the time of their EA renewal. To prepare, it’s crucial to review your current EA terms and analyze how this shift may affect your budget—especially for cloud services like Azure and Microsoft 365.

2. Brace for Price Increases on Microsoft Products

On April 1, 2025, Microsoft will increase pricing on several licenses:

• Power BI Pro: Rising from $10 to $14/user/month.
• Power BI Premium per User (PPU): Increasing from $20 to $24/user/month.
• Microsoft 365 and Dynamics 365 Monthly Billing: A 5% premium charged by Microsoft for annual subscriptions paid monthly.
• Teams Phone: Price hikes for Teams Phone Standard and Calling Plans.

These changes mean it’s time to reassess your budget and Microsoft licensing strategy. Start by auditing your current usage of tools like Power BI to understand where these increases will hit hardest. If monthly billing is your default, consider switching to annual payments upfront—it’s a straightforward way to avoid the 5% surcharge and lock in predictable costs. To ensure you’re not overpaying, streamline your environment by reviewing unused licenses and optimizing your subscriptions. For expert support, check out MicroAge’s blog on optimizing your Microsoft 365 environment.

3. Optimize Your Microsoft 365 Licensing

Microsoft recently unbundled Microsoft Teams for Commercial E1, E3, and E5 licenses, giving organizations a chance to reassess and refine their licensing strategies. This change allows you to fine-tune your licenses to match your employees’ actual needs, potentially leading to significant cost savings.

• Start by auditing your current Microsoft 365 usage and evaluating whether all users truly need full E3 or E5 licenses. MicroAge’s team of licensing experts can guide you through the process of finding optimal solutions based on your unique needs.
• Create user personas based on communication and collaboration needs, segmenting users into roles such as:
  • Frontline workers: Basic licenses (e.g., F3) with basic email and document editing capabilities.
  • Knowledge workers: Standard licenses (e.g., E3) providing the full suite of collaboration tools.
  • Advanced users: Premium licenses (e.g., E5) with advanced security and analytics features, only when necessary.

By mixing and matching licenses to your specific personas, you can design a tailored and cost-effective solution.

4. Don’t Forget About Your Azure Subscription Resources

As organizations begin to transition off Enterprise Agreements (EAs), make sure to focus on optimizing your Azure subscription resources as well. With the updates expected in 2025, Microsoft aims to provide plans that better align with specific business needs. Ensuring your Azure environment is cost-effective and modernized is key to staying competitive.

By leveraging the MicroAge Methodology—Discover, Migrate, and Manage—you can navigate these changes with confidence and efficiency:

• Discover: Conduct a thorough assessment of your current Azure environment to uncover opportunities, align resources with business needs, and address gaps in scalability, security, and governance.
• Migrate: Seamlessly transition workloads to modernized Azure services with a validated, tested, and well-executed deployment strategy that minimizes downtime and optimizes performance.
• Manage: Maintain an efficient and secure Azure environment with proactive monitoring, governance, and continuous optimization to support evolving business objectives.

With MicroAge’s expertise, you’ll ensure your Azure resources are future-ready, cost-effective, and aligned with your organization’s demands.

5. Empower Your Users With Microsoft 365 Copilot

Microsoft’s introduction of flexible billing for Microsoft 365 Copilot in December 2024 marks a significant shift in how organizations can adopt and scale AI-powered productivity tools. This new billing model allows you to unlock AI-driven productivity gains across your organization.

• Identify departments (e.g., marketing, data analysis) that could benefit most from AI-powered productivity.
• Run a pilot program with clear success metrics (e.g., time savings and efficiency improvements) and gradually scale adoption based on measurable results to maximize ROI.
• Leverage MicroAge’s user persona training to help you take full advantage of these tools to achieve maximum productivity benefits.

Additionally, MicroAge offers readiness and optimization assessments to identify and mitigate gaps in security and governance. These assessments ensure your team is equipped to leverage Copilot while maintaining a robust governance framework.

6. Evaluate Your Power Platform Requirements

Changes to Microsoft’s Power Platform in 2025 include pricing adjustments for Power BI, feature enhancements, and deeper integration with AI and Copilot tools. It’s a good time to review your organization’s Power Platform requirements and how they align with data management and governance strategies.

• Audit Power BI usage to determine if the new licensing model meets your users’ needs.
• Compare pay-as-you-go vs. current models to determine cost efficiency, which can be particularly beneficial for organizations with fluctuating analytics needs.
• Align Power BI usage with seasonal demands, scaling up or down as needed. For instance, a retail company might ramp up its data analysis during peak shopping seasons and scale back during slower periods.
• Engage with a Microsoft CSP like MicroAge to provide an expert usage assessment and review your data management and governance strategies to help you optimize your Power Platform environment.

The goal is to ensure that your BI licensing not only meets your current needs but also aligns with your organization’s data strategy moving forward.

7. Implement Regular License Optimization Reviews

In the fast-paced world of Microsoft licensing, set-it-and-forget-it is a recipe for inefficiency and unnecessary costs. Implementing a cadence of regular license optimization reviews is crucial for maintaining an effective and cost-efficient licensing strategy.

• Regularly analyze usage data through tools like Microsoft 365 Admin Center and Azure Cost Management.
• Look for patterns in usage, identify underutilized licenses, and consolidate them where possible.
• Align licensing with evolving business needs, such as new projects, growth, or reductions in staff.
  • Are there new projects or initiatives on the horizon that might require different licensing?
  • Are there departments that are growing or shrinking?

With MicroAge, clients benefit from a structured cadence of licensing reviews led by our Microsoft team, ensuring solutions align with your business initiatives. During these reviews, we analyze usage data, uncover underutilized licenses, and recommend adjustments to meet your needs. This proactive approach keeps costs under control while aligning your licensing strategy with organizational goals.

Simplify and Optimize Your Microsoft Licensing with Expert Help

Navigating Microsoft’s licensing changes can feel overwhelming, but it doesn’t have to be. By taking a proactive approach to the 2025 updates—from EA phase-outs to pricing changes—you can keep costs under control and ensure compliance.

If you’re unsure where to start, MicroAge’s certified Microsoft experts are here to help. Whether you’re transitioning from an EA to a CSP or optimizing your Microsoft 365 and Power Platform environments, we’ll work with you to make smart, cost-effective decisions.

Let’s talk

Contact us at (800) 544-8877 for help simplifying and optimizing your Microsoft licensing.