← Back to the guide

Microsoft 365 licensing models explained

8slides. Screenshot a slide, download it as a PNG, or use your browser's Print → Save as PDF for a LinkedIn-ready multi-page carousel — each slide becomes one page.

M

solvingmicrosoft365.com

1 / 8

Microsoft 365 licensing models explained

How Microsoft 365 is sold — direct, CSP, EA, MCA, NCE — and which model fits which organisation.

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-licensing-models-explained

Slide 1Download PNG

M

solvingmicrosoft365.com

2 / 8

01

What are the ways to buy Microsoft 365?

Direct from Microsoft (web direct or a Microsoft Customer Agreement), through a Cloud Solution Provider partner (CSP), or under an Enterprise Agreement for large organisations. Each has different commitment terms, billi…

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-licensing-models-explained

Slide 2Download PNG

M

solvingmicrosoft365.com

3 / 8

02

What is the difference between annual and monthly commitment?

Annual commitment locks the price and seat count for a year (with limited reductions) and is cheaper; monthly commitment allows seat changes each month at a surcharge Microsoft introduced in 2022 and raised in 2025. Mix…

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-licensing-models-explained

Slide 3Download PNG

M

solvingmicrosoft365.com

4 / 8

03

What is an Enterprise Agreement and who needs one?

A three-year volume licensing contract for organisations with 500+ users (Microsoft has been moving smaller customers off EAs toward CSP and MCA-E), with price protection and true-up rules. Most organisations under a fe…

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-licensing-models-explained

Slide 4Download PNG

M

solvingmicrosoft365.com

5 / 8

04

1–50

Right model: Direct or CSP

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-licensing-models-explained

Slide 5Download PNG

M

solvingmicrosoft365.com

6 / 8

05

50–300

Right model: CSP

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-licensing-models-explained

Slide 6Download PNG

M

solvingmicrosoft365.com

7 / 8

06

300–500

Right model: CSP or MCA

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-licensing-models-explained

Slide 7Download PNG

M

solvingmicrosoft365.com

8 / 8

07

500+

Right model: EA (transitioning to MCA)

Solving Microsoft 365 · www.solvingmicrosoft365.com/guides/microsoft-365-licensing-models-explained

Slide 8Download PNG

Auto-generated from Microsoft 365 licensing models explained. This page is not indexed and isn't part of the guide itself.