What every enterprise needs to know about the future of Microsoft licensing.
Over the past two years, Microsoft has been quietly reshaping the way organizations buy and manage software. If you’ve been paying attention, you’ve likely heard the term “CSP” (Cloud Solution Provider) more frequently—especially as legacy Enterprise Agreements (EAs) come up for renewal. Make no mistake: this isn’t just another licensing option. CSP is now the hero motion.
As a former CIO, I’ve negotiated countless Microsoft licensing agreements—EAs, Select, Open Value, you name it. I’ve worked with LSPs who could get me a discount but couldn’t tell me how many licenses I was really using. I’ve also sat on the other side of the table as a Microsoft direct CSP partner for the past 10 years. Let me break down what’s really happening—and why it matters.
Read The Ultimate Guide: What is Microsoft CSP?
Why Microsoft Is Pivoting to CSP
CSP isn’t new, but it is newly emphasized. Microsoft’s shift toward the CSP model is rooted in three strategic goals:
- Agility and Flexibility: The EA model is rigid. CSP gives customers the option for monthly billing, adjustable quantities, and greater alignment with real-time business needs.
- Partner-Led Support: CSP customers are supported by Microsoft partners, not Microsoft directly. That means Microsoft can scale support more efficiently—and partners can step up to deliver higher-touch service.
- Cloud-Centric Innovation: CSP aligns more closely with Microsoft’s cloud-first future, where services like Microsoft 365, Azure, and Dynamics are evolving rapidly.
The EA, by comparison, was designed for a world of static infrastructure and slow procurement cycles. CSP supports a world that changes every month.
What’s the Real Impact to Your Organization?
If you’re currently in an EA or approaching renewal, this transition is more than a licensing conversation—it’s a strategic inflection point. Here’s what we’re seeing in the field:
- Customers under 2,400 seats are being strongly encouraged to move to CSP at renewal. Even those above that threshold are seeing pressure to prove continued EA value.
- Licensing discounts are shrinking. EA discounts aren’t what they used to be, especially as Microsoft ties incentives to cloud services and customer success metrics.
- Support expectations are changing. Many LSPs provide transactional support at best. In a CSP model, your partner relationship becomes critical to navigating product changes, cost control, and licensing clarity.
Why Customers Are Choosing CSP—and Staying There
At Synergy Technical, we’ve helped customers in every state transition to CSP agreements, and they aren’t looking back. Here's why:
- No more shelfware. In CSP, you only pay for what you use. We help customers right-size licensing so that they don’t have unused licensing.
- No more black-box renewals. With transparent billing and dedicated account management, there are no surprises.
- Faster resolution. Our customers don’t wait days to hear back. We’re staffed with certified Microsoft product experts and Software Asset Managers focused entirely on licensing.
- Smarter strategy. We eliminate redundancy, consolidate SKUs, and advise on technology alignment—not just licensing.
You don’t need the cheapest provider. You need the one who will help you avoid expensive mistakes.
What Should You Do Next?
If your EA is up for renewal in the next 12 months, now is the time to evaluate your options. The move to CSP isn’t about risk—it’s about opportunity:
- Save money by eliminating underutilized or misaligned SKUs.
- Gain agility in managing licenses, projects, and workforce changes.
- Receive strategic guidance—not generic quotes.
Ready to transform your licensing strategy? Contact us today to schedule a consultation, learn more about the Microsoft CSP licensing benefits, or start optimizing your Microsoft cloud services with a trusted partner by your side. Let’s modernize your cloud journey together!
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