EA vs. MPSA vs. CSP: Choosing the Right Microsoft Licensing Program

EA vs. MPSA vs. CSP

Microsoft offers multiple licensing agreements – each with different commitments, pricing structures, and flexibility – so it’s no wonder organizations get confused.

CIOs, CFOs, and IT procurement or asset management teams often struggle with EA vs. MPSA vs. CSP comparisons, especially when a Microsoft contract is up for renewal or a first-time purchase.

Picking the wrong program can mean overspending on licenses or losing leverage with Microsoft down the road. Read our complete guide to Microsoft Licensing Programs.

In this guide, we break down these Microsoft licensing agreements side by side, highlighting the trade-offs between cost and flexibility for each.

For example, the Microsoft CSP vs. EA decision typically boils down to a choice between long-term commitment and bigger discounts versus pay-as-you-go flexibility, with MPSA offering a middle ground.

With a buyer-first perspective, you’ll learn which option best fits your organization’s needs (considering size, budget, and strategy).

By understanding how EA, MPSA, and CSP compare, you can avoid common licensing pitfalls and make a strategic choice.

Enterprise Agreement (EA)

The Enterprise Agreement is Microsoft’s flagship licensing program for large customers. An EA is a 3-year contract that typically requires at least 500 users or devices.

In return for an enterprise-wide commitment to Microsoft products, you get significant volume discounts with prices locked in for the term. Software Assurance (SA) is included, providing upgrade rights and other benefits.

The downside is that an EA is rigid. You’re locked in for three years. Each year, you must report any increases in usage and pay for those true-ups, but you generally cannot reduce your license count until the term ends (no mid-term true-down).

This lack of flexibility means an EA works best if your user count and IT needs are stable or growing. Large organizations that can accurately forecast usage will benefit the most, essentially trading the freedom to scale down for the lowest per-license cost.

Microsoft Products & Services Agreement (MPSA)

The Microsoft Products & Services Agreement is a transactional volume licensing agreement with no set expiration date. Unlike the EA’s multi-year term, an MPSA lets you buy licenses on an as-needed, ongoing basis.

There’s no minimum user count, so mid-sized organizations often use MPSA if an EA is too large or unwieldy. It’s especially useful for purchasing on-premises or perpetual software licenses without committing to an enterprise-wide deployment.

The trade-off: fewer discounts. Because you’re not making a big upfront commitment, MPSA pricing is only mildly volume-discounted (using a point system). Software Assurance is optional — you add it per license if needed.

The main benefit of MPSA is flexibility: you buy what you need when you need it, with no long-term contract. This is great if you still have significant on-premises software needs or aren’t ready for a cloud-only subscription model.

Be aware that Microsoft is de-emphasizing MPSA (it’s being phased out for new customers), so while you can continue to use it, you should plan for eventual transitions.

Read Microsoft Customer Agreement (MCA) vs. Enterprise Agreement: What’s the Difference?.

Cloud Solution Provider (CSP)

The Cloud Solution Provider program is Microsoft’s cloud subscription model sold through partners. There’s no direct agreement with Microsoft to sign – instead, you buy what you need from a CSP reseller on a monthly or annual subscription basis.

No minimum seats are required, so that any size business can use CSP. The big selling point is agility: you can increase or decrease licenses easily. If you hire new employees, you add licenses for the next billing cycle; if you downsize, you drop licenses (usually effective the next month or term).

What do you give up for this flexibility? Mainly, the large volume discounts. CSP pricing is generally at or near Microsoft’s retail rates.

A partner might offer a slight break, but you won’t get the deep price cuts that an EA can negotiate.

Additionally, CSP doesn’t include the traditional Software Assurance extras (although, since all software is subscription, you automatically get the latest versions).

The partner, rather than Microsoft, provides support in CSP. CSP is ideal for small and mid-sized organizations, or any business that values flexibility over rock-bottom pricing.

If you don’t meet EA’s size threshold or you want to avoid long-term lock-in, CSP is likely your best option — just be aware you’ll pay a bit more per license for that freedom.

Read more about CSP, Microsoft CSP Program for Enterprises: Pros, Cons, and Cost Considerations.

Comparison Table – EA vs. MPSA vs. CSP

Below is a side-by-side comparison of key factors across EA, MPSA, and CSP:

When to Choose Which

Still unsure which program is the right fit? Here are some guidelines on when to choose EA, MPSA, or CSP based on your situation:

• Choose an EA if your organization has 500 or more users and you want the highest volume discounts locked in for three years. It’s ideal when you can commit enterprise-wide, have a stable or growing user base, and are comfortable with less flexibility in exchange for savings.
• Choose an MPSA if you’re a mid-sized organization that doesn’t want a multi-year contract. MPSA is suitable when you still buy a lot of on-premises (perpetual) software or need the freedom to purchase licenses as needed, even though the discounts are smaller.
• Choose CSP if you’re a smaller company or a cloud-first org that values flexibility. CSP is the right choice when you need to add or remove licenses frequently, prefer pay-as-you-go billing, or don’t meet the EA size minimum. You’ll pay a bit more per license, but you avoid long-term lock-in.

Checklist – Program Fit Questions

To further guide your decision, ask yourself the following:

• ✓ Do you have more than 500 users to license?
• ✓ Do you need long-term price protection (multi-year locked pricing)?
• ✓ Is flexibility more important to you than maximizing discounts?
• ✓ Are you a cloud-first organization, or do you maintain a hybrid environment?
• ✓ Do you still purchase a lot of on-premises (perpetual) software?

FAQs

Can CSP replace an EA?
For smaller organizations that don’t meet the EA minimum or need maximum flexibility, CSP can effectively replace an EA. You get the licenses via subscription without a multi-year commitment. However, for large enterprises, relying only on CSP could end up costing more because you miss out on EA’s volume discounts and price locks. Many large companies rely on an EA for core needs and utilize CSP for specific projects. In short, CSP can replace an EA in some cases, but at a certain scale, an EA still often provides better value.

Is MPSA still available?
Yes, MPSA is technically still available – especially for existing customers – but Microsoft is phasing it out. These day,s Microsoft steers new buyers toward either an EA (for large enterprises) or cloud subscription programs like CSP. If you already have an MPSA, you can continue to use it, but it’s considered a legacy program and will likely be retired in the future.

Which model offers the best discounts?
Generally, the Enterprise Agreement provides the deepest discounts. By committing to a high volume of licenses for three years, large companies can negotiate much lower prices per license. MPSA offers some volume discounting via its point system, but not as steep as an EA. CSP has the least discounting – its pricing is usually close to retail rates. So if maximizing discount per license is your priority and you have the volume, an EA usually comes out on top.

Can you mix CSP and EA?
Yes. In fact, many companies use both an EA and CSP. For example, you might put your core software (say, Office 365 for all employees) on an EA to get the best pricing, but use CSP for a specific project or a department that needs a short-term solution. Microsoft allows mixing programs – just be careful to manage them so you don’t accidentally double-purchase or lose track of licenses.

Which agreement is best for Azure-heavy spend?
For organizations with very large Azure spending, an EA is usually the better choice because you can negotiate Azure pricing as part of your enterprise contract (and get consolidated billing and support). If your Azure usage is smaller or unpredictable, using CSP to pay-as-you-go is a straightforward option with no commitments – you’ll just pay standard rates. In short, big Azure spenders lean toward EA for possible cost benefits and account management perks, while smaller or more flexible Azure users go with CSP.

Five Expert Recommendations

Finally, keep these expert tips in mind when navigating Microsoft licensing:

1. Don’t assume an EA is always best. Even if you qualify for an Enterprise Agreement, compare its costs against CSP and MPSA alternatives before deciding. Sometimes a mix-and-match approach (or even going all-in with CSP) can be more cost-effective depending on your usage.
2. Match the program to your size and usage. Align your choice with your company’s size, cloud strategy, and growth outlook. Smaller, cloud-only businesses usually benefit from CSP’s flexibility, whereas large enterprises with steady needs often gain more value from an EA. Make sure your licensing model reflects how you actually use Microsoft services.
3. Leverage alternatives in negotiations. If you’re negotiating an EA renewal, use CSP or MPSA as leverage. Let Microsoft know you have other options. Showing that you might shift some workloads to a different program can encourage Microsoft to offer better discounts or terms to keep your business in an EA.
4. Optimize true-ups and license management. Whichever program you choose, stay on top of your license counts. In an EA, start with what you need and add licenses only as required at the annual true-up to avoid overpaying. In CSP, audit your subscriptions regularly and remove unused licenses so you’re not paying for shelfware. Good license hygiene will save money in any model.
5. Reevaluate at each renewal. Don’t auto-renew your agreements without a fresh review. Business needs change and Microsoft’s licensing programs evolve. When an EA term ends (or even annually for CSP subscriptions), reassess whether your current deal is still the best option. What worked three years ago might not be ideal now – you might be larger (making an EA more worthwhile) or more cloud-focused (making CSP more attractive). Regularly reviewing your licensing strategy ensures you always have the best-fit agreement.

In the end, there’s no one-size-fits-all answer. The right choice between EA, MPSA, or CSP depends on your organization’s size, budget priorities, and how much flexibility you need. By understanding the trade-offs and reviewing your options at each renewal, you can confidently choose a Microsoft licensing program that delivers the best value for your business.

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