- Written by Tom Shefford - Head of IT & Cyber Proposition
- Connect with Tom on LinkedIn
Microsoft have announced that they are introducing new 3-year subscription terms for its Cloud Solution Provider (CSP) programme.
These upcoming terms are designed to offer more flexibility and predictability for businesses. This update aims to make it easier for companies to transition from Enterprise Agreements (EA) to CSP, providing a stable pricing model and additional benefits.
Let’s take a closer look at what these new terms could mean for your business and how they can help you.
Key Features of the New 3-Year Terms
Availability and Scope
The new 3-year terms will be available for Microsoft 365 E3, E5, and Teams Enterprise subscriptions starting from 1 June 2025. Additionally, from 1 July 2025, Microsoft will introduce 3-year subscription terms for Microsoft 365 E5 Security and E5 Compliance mini suites. This initiative is designed to provide a consistent customer experience by locking in prices for the entire term, offering more stability and predictability in budgeting.
Pricing and Billing
While the 3-year terms may not offer a cheaper alternative compared to the 1-year deals, they will provide the advantage of fixed pricing over the term. This means that businesses can avoid the fluctuations in pricing that might occur with annual renewals. However, it’s important to note that these subscriptions can only be billed annually or triennially, with no option for monthly billing.
Promotions and Discounts
To encourage the adoption of these new terms, Microsoft is expected to offer a 10% discount for new customers transitioning to E3 or E5 subscriptions on the 3-year terms. This promotion is anticipated to begin on 9 June 2025 and is designed to make it easier for businesses to move from on-premises solutions or upgrade from Office 365.
Benefits of the New Terms
Predictable Costs
One of the primary benefits of the new 3-year terms is the ability to lock in prices for the duration of the term. This predictability can be crucial for businesses in planning their IT budgets and avoiding unexpected cost increases.
Simplified Renewals and Upgrades
The new terms will also simplify the process of renewing and upgrading subscriptions. With the updated channel transfers experience, new reporting features, and AI-powered automation in Partner Centre, managing subscriptions will become more streamlined and efficient.
Enhanced Customer Experience
By offering a consistent pricing model and simplifying the management of subscriptions, Microsoft aims to enhance the overall customer experience. This approach not only benefits the end-users but also helps partners in providing better service and support.
How to Get Started?
For businesses looking to take advantage of the new 3-year terms, it’s essential to stay informed about the latest pricing and offers. Please get in touch to discuss your needs in more detail.
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