Scott Braden

Feb. 26,2026 | Microsoft

What CFOs, CIOs, and Microsoft Estate Planners Need to Understand Now

Microsoft has quietly but materially changed the commercial conversation.

According to Microsoft’s public positioning, commercial customers transacting directly under Enterprise Agreements, Enterprise Agreement Subscriptions, and legacy SCE structures are now quoted at “retail” pricing. Historic A, B, C, D price levels are gone.

On paper, that suggests a simplified, standardized approach.

In practice, it means something very different for CFOs and CIOs.

1. First Quotes Are Resetting Higher

Across the market, we see a consistent pattern:

• Renewal quotes are coming in at full list price.
• Historic enterprise-level discounts are not reflected in initial proposals.
• Prior A, B, C, D tier advantages are no longer baked into the baseline.

For organizations with more than 6,000 users, the net effect is often a first quote that is 10 to 30 percent higher than the expiring agreement.

For organizations under 6,000 users, the increase is typically 10 to 15 percent over the expiring deal.

That delta is occurring before negotiation even begins.

This aligns with Microsoft’s broader push to modernize commercial models and drive cloud standardization under Microsoft 365 and Azure programs. Public documentation on Enterprise Agreements and Cloud Solution Provider programs reflects this shift toward simplified pricing constructs and subscription models

- https://www.microsoft.com/licensing/how-to-buy/enterprise-agreement
- https://partner.microsoft.com/en-us/licensing/cloud-solution-provider

Your takeaway? The starting line has moved.

2. Discounting Still Happens, But the Baseline Is Higher

We presume, and our experience supports, that larger enterprises will still secure discounts.

However:

• Discounts now start from a higher “retail” baseline.
• The old structural tier discounts are no longer embedded.
• Negotiation leverage must be rebuilt, not assumed.

For CFOs, that means budgeting assumptions based on historic enterprise status are no longer reliable.

For CIOs, it means that past deal mechanics do not guarantee future pricing behavior.

If your organization previously benefited from C or D level pricing, you may find that the first quote feels materially disconnected from your last renewal.

3. CSP May Be the Better Model for Small and Mid-Sized Accounts

For small and mid-sized organizations, especially those that previously sat in A or B tiers, the Cloud Solution Provider model may now be economically superior.

Why?

• CSP resellers retain margin flexibility.
• Many bundle support services that can be customized or unbundled.
• The CSP ecosystem is broad, competitive, and increasingly sophisticated.

Unlike the historic EA environment, where only a limited number of Large Account Resellers managed agreements, the CSP channel is open to many providers.

That creates opportunity.  It also creates risk.

4. Buyer Beware in the CSP Market

This is a fast-changing and highly competitive landscape.

Some resellers will:

• Offer financially unprofitable pricing to win logo deals.
• Under-resource support services that are bundled.
• Lack depth in complex licensing architecture.

Price is only one dimension of value. Execution quality, compliance posture, and support responsiveness matter just as much.

CFOs should be concerned about total cost of ownership, not just headline discount.

CIOs should be concerned about operational stability and licensing integrity.  A competitive bid process is no longer optional. It is prudent governance.

5. This Is Only About Price. The Bigger Levers Are Elsewhere.

Everything above relates strictly to pricing posture.

But sophisticated Microsoft optimization is rarely just about unit price.

Before price is ever discussed, NET(net) consistently saves clients 10 to 15 percent, and often more, through structured due diligence and optimization preparation:

• Right-sizing user profiles and license mix
• Eliminating redundant SKUs
• Aligning deployment reality to entitlement structure
• Validating Azure consumption models
• Identifying misaligned purchase vehicles
• Correcting compliance exposure

This is Right-Buying, Right-Licensing, Right-Pricing in action

When those fundamentals are addressed first, pricing discussions become far more effective.

Even in a “retail for all” world, optimization still drives material savings and structural improvements.

6. Why This Matters for Decision Makers

For CFOs:

• Expect higher first quotes.
• Do not assume prior tier status protects your economics.
• Re-baseline Microsoft forecasts with realistic negotiation scenarios.
• Evaluate CSP vs. direct models objectively.

For CIOs:

• Prepare for more standardized opening positions.
• Rebuild negotiation leverage through competitive process and strategic positioning.
• Ensure internal licensing architecture is defensible before engaging Microsoft.
• Separate support quality from pricing promises in CSP evaluations.

This is not a minor pricing adjustment. It is a structural shift in how Microsoft positions commercial agreements.

NET(net)’s Perspective

For more than 24 years, NET(net) has helped global enterprises optimize agreements, investments, and supplier relationships

We do not take money from suppliers. We do not sell data. We represent only our clients

In this new Microsoft pricing environment:

• We see first quotes reset to retail.
• We see discounting still occur, but from a higher baseline.
• We see small and mid-market accounts potentially advantaged under CSP.
• We see meaningful risk in unvetted reseller strategies.

Most importantly, we continue to see 10 to 15 percent savings achieved before price negotiation even begins, through structured optimization and preparation.

Microsoft may reset the baseline.

That does not eliminate leverage.

It simply changes where it must be built.

For enterprises with material Microsoft exposure, this is a moment that deserves executive attention, disciplined analysis, and a competitive, structured approach.

Price is visible.

Optimization is where real value is created.

 About NET(net)

At NET(net), we don't just optimize IT investments, we weaponize them for competitive advantage. As the world's leading technology investment optimization firm, we've spent over two decades perfecting the art and science of extracting maximum value from technology supply chains while neutralizing vendor pricing manipulation.

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We're not consultants who theorize about optimization, we're the specialists who help you devise and execute your strategy. Our proven frameworks turn vendor pricing chaos into strategic opportunity, licensing complexity into competitive advantage, and cost centers into value engines. Whether you're facing an aggressive vendor audit, navigating a forced migration, or simply refusing to accept runaway IT costs, NET(net) delivers the expertise, experience, and execution you need to dominate rather than merely survive.

Founded in 2002, NET(net) has established itself as the essential strategic partner for enterprises and technology providers who demand performance, not promises. We've mastered every major area of IT optimization because we understand that in today's vendor-hostile environment, half-measures guarantee defeat.

Experience the NET(net) advantage. Contact us at info@netnetweb.com, visit www.netnetweb.com, or call +1 (616) 546-3100 to discover how we can transform your technology investments from cost burden to strategic weapon.

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