Microsoft Licensing Update March 2025

Author:

Floris Klaver

Floris entered Microsoft Licensing in 2011. Seasoned in simplifying highly complex contracts and licensing environments for large and global organizations.

You are now reading:

Microsoft Licensing Update ... Microsoft Licensing Update March 2025

Author:

Floris Klaver

April 2025 Microsoft CSP & MCA-E Price Changes

The April 2025 pricelist preview is available, and Microsoft is making some notable changes for Cloud Solution Provider (CSP) and Microsoft Customer Agreement for Enterprise (MCA-E) programs.

As previously announced, there will be a 5% price increase for monthly billed annual subscriptions under these programs. If you currently pay monthly for an annual commitment, expect a 5% higher cost upon renewal compared to annual upfront billing.

Correction Pending

The preview pricelist currently does not reflect the 5% increase for triennial (3-year) subscriptions under CSP and MCA-E. Microsoft will update this in the final April pricelist.

Key Pricing Updates & Discounts:

  • Copilot: 15% discount (minimum 10 seats, maximum 300) – Valid until April 1, 2025
  • Microsoft 365 E3: 15% discount for new E3 customers (first purchase), max 2,400 seats – Valid until June 30, 2025
  • Microsoft 365 E5: 15% discount for new E5 customers, max 2,400 seats – Valid until July 1, 2025
  • Microsoft 365 E5 Compliance: 50% discount when purchased alongside Copilot – Valid until February 1, 2026

System Center 2025

System Center 2025 will be made available in CSP as of April 1st 2025. It was available in other channels already as of November 1st, 2024. Microsoft states that the revised launch date ensures that all necessary updates are in place for a seamless experience.

System Center 2025 enhances IT infrastructure management and security, modernizes datacenters, and unifies management across diverse infrastructures for a more efficient, agile IT environment.

This version introduces new pricing with a 10% increase compared to the 2022 release, supporting its ongoing development. It is sold as a perpetual license, with the licensing model for Standard and Datacenter remaining the same as 2022, differentiated by virtualization rights.

Licenses are required only for the managed endpoints, with no additional licenses needed for SQL Server Standard Edition. Server management licensing is based on physical cores, aligning with the Windows Server 2025 model for managed VMs.

Product Terms Updates

  • Universal License Terms for Online Services: Microsoft updated the Acceptable Use Policy by removing the wording without Microsoft’s prior written approval after the Cryptocurrency Mining Clause. We think this means Microsoft will not allow the mining of cryptocurrencies on their platform in any case, so getting prior approval will not mean you are allowed to do it.
  • Privacy & Security Terms: Microsoft 365 Copilot Chat is now part of the EU Data Boundary Services table. This means M365 Copilot Chat is covered under the GDPR clauses that Microsoft tries to adhere to.
  • Microsoft 365: Microsoft is now referencing M365 Copilot and M365 Copilot Chat in their language, as these are different products (though handled the same). Microsoft also removed an error in the Microsoft Defender for Business clause. It used to state Defender for Endpoint but should have read Defender for Business.
  • Azure: Microsoft updated the Azure Local clause by clarifying this is not just regarding Servers, but rather Devices in general. The Customer Support clause was removed in general. Microsoft also added an exception to commitment on location of data processing for optional model fine-tuning feature in Azure OpenAI Service.

Miscellaneous

CSP Promotion

Starting February 1, 2025, until February 1, 2026, Microsoft is offering a 50% discount on Microsoft E5 Compliance for all customers who have Microsoft 365 Copilot licenses. This promotion applies to both new and existing customers who previously purchased Microsoft 365 Copilot without the Microsoft E5 Compliance SKU.

There is a new CSP Program Guide available here. This will go into effect for all CSP Microsoft Partners as of March 30th 2025.

Floris has a strong technical background and a wealth of experience in Microsoft licensing and negotiation. Floris helps LicenseQ’s clients actively expand their licensing knowledge, improve their license position, mitigate possible exposure, negotiate with Microsoft and helps to reduce or optimize their Microsoft spend. Floris has worked in software licensing since 2011 and was employed at Microsoft during their transformation from a software vendor to a cloud solutions vendor. If you are in need of support or an extra pair of expert eyes on your Microsoft related licensing queries, please reach out to Floris via LinkedIn so we can set up a meeting to discuss possibilities.

  • Runnenbergweg 5, 8171MC
  • Vaassen, The Netherlands