Microsoft 3-year subscription SKU’s in CSP

Starting June 1, 2025, Microsoft is introducing a three-year commitment for all E3 and E5 subscriptions in the Cloud Solution Provider (CSP) program. This includes:

• Microsoft 365 E3 and E5
• Microsoft 365 E5 Security Add-On
• Microsoft 365 E5 Compliance Add-On
• Microsoft Teams Enterprise (for M365/O365 suites without Teams)

These changes aim to support Enterprise Agreement customers transitioning to CSP while maintaining long-term licensing agreements.

Introductory Discounts

• 10% discount for organizations that have never used Microsoft E3 or E5, provided they commit to three years.
• Extended promotion: 15% discount on purchases of at least 10 Microsoft 365 Copilot licenses, now valid until June 30, 2025.

Promotions Starting June 9, 2025

From June 9, promotions apply to all E3 and E5 products, both with and without Teams, for organizations that commit to three years.

• Billing options: Upfront or spread over three years.
• Eligibility: Organizations that have never used these products before.
• License requirements: Minimum 100, maximum 2,400 licenses.
• Promotion runs from June 9, 2025, to December 31, 2025.

Promotions Starting July 1, 2025

From July 1, promotions apply to Microsoft E5 Compliance and E5 Security Add-Ons under the same conditions.

Impact on Existing Customers

Current Microsoft 365 E3 and E5 customers can extend their subscription from one year to three years. While no discounts apply, price protection is guaranteed for the duration.

Product Term updates

General Update

Microsoft has added so-called hidden products to the Availability Tables for MCA products under the categories M365, M365 Applications and Workplace Analytics. This is respectively about VDA Add-on for M365 E3/E5 User SL (M365), M365 Apps for Enterprise Device License (M365 Apps) and the Workplace Analytics User SL. These licenses now have an asterisk stating these licenses May not be available in all sales channels and geos. May require engaging with a Microsoft representative to place an order.

Universal License Terms for Online Services

• Use of Content for Training: Updated to clarify Microsoft will not use the Customer Data (inputs or outputs) to train their foundation models, unless according to Customer’s documented instructions
• Location of Data Processing clause removed (moved to Privacy and Security Terms)
• Customer Copyright Commitment: Updated clause to clarify when a Customer’s obligations to defend Microsoft against third-party intellectual property claims under a Customer’s volume license agreement will not apply.

Microsoft 365

• Remote Network Bandwidth added to the availability and prerequisites tables. This product is part of Microsoft Global Secure Access and is available to add additional remote network bandwidth to your tenant.
  • This product requires one of the following base licenses: Microsoft Entra ID P1; Microsoft 365 E3/A3; Microsoft 365 Enterprise Mobility & Security E3/A3; Microsoft 365 Business Premium; Microsoft Entra Internet Access; Microsoft Entra Suite.
  • An additional clause was added stating the following rules apply: Customers must have a combined 50 Entra ID Plan 1 and/or Microsoft Entra Internet Access and/or Entra suite licenses. You can check here for more information.
• In line with the update from April 2025, Microsoft has now removed the Frontline worker clause from the M365 page and instead included it in the Universal Licensing Terms for OLS.

Microsoft Dragon Copilot

New product page added. Microsoft Dragon Copilot is an AI assistant designed for clinical workflows in healthcare, combining voice dictation, ambient listening, and generative AI. This is what is included:

• Dragon Copilot Use:

• • Customers can only use Dragon Copilot in connection with healthcare encounters (visit this link).
  • Restricted to qualified healthcare professionals working on behalf of the customer.
  • Users must be trained, certified and meet legal requirements
  • Healthcare providers must review and verify all outputs before use in a medical setting.
  • Its use under Healthcare Intended Uses is not considered “High-Risk Use”
• Healthcare Required Authorizations:
  • Customers are responsible for displaying notices, disclaimers, and obtaining consents before submitting any data.
  • Must maintain and provide evidence of authorization forms upon request.
• Restrictions: Customers cannot use Dragon Copilot or its data to create or improve competing products.
• Code of Conduct: Certain provisions regarding Exploitation, Abuse, and Violent Content do not apply when used according to Healthcare Intended Uses.
• Customers may use Dragon Copilot within third-party Electronic Health Record (EHR) applications (e.g., Epic), but must maintain a valid license. Microsoft does not sell, license, or support third-party EHR applications.

Privacy and Security Terms & Conditions

• Exceptions to the DPA: Dragon Copilot was added to the table of Exceptions to the DPA.
• Summary of Data Use in Dragon Copilot:
  • Customer Data is processed (including human review) to improve AI/ML models.
  • PHI may be de-identified or used for Data Aggregation under HIPAA regulations.
  • Nuance Speech Data is processed to enhance speech recognition for relevant customers.
  • Subprocessors support Dragon Copilot; details available here.
  • Customers who disagree with these terms should not use Dragon Copilot.
  • For more information, click here.
• Internet Based Features clause was updated: Some software features automatically connect to the Internet and share data with Microsoft, its Affiliates, and service providers without additional notice. The use of this data is explained in the Product documentation and the Microsoft Privacy Statement (more info here). By default, Microsoft acts as a controller of Personal Data related to these features, unless stated otherwise. When Microsoft is the controller, Personal Data is handled according to the Privacy Statement, and the Data Protection Addendum terms do not apply.
• As part of the EU Data Boundary Services, the following link was added to the Azure part of the table. This contains the total list of Azure EU Data Boundary Services.