Microsoft just dropped the biggest licensing change in over 20 years—one that could quietly shake up IT budgets everywhere. Starting November 1, 2025, the familiar “waterfall” discount system (price levels B–D) disappears for all Online Services.

Translation:

  1. No more automatic tiered discounts.
  2. Enterprise Agreements (EA), MPSA, and OSPA will default to Level A pricing—the same as Microsoft’s public list price.
  3. The size of your environment won’t guarantee better pricing anymore.

If you’re running a large Microsoft environment, this change lands squarely on your budget.

Why This Change Matters

For years, Microsoft’s waterfall discounts rewarded bigger commitments with lower per-unit costs. That model is gone—and with Online Services making up the majority of EA spend, the financial impact is unavoidable.

Here’s what IT leaders should expect:

  1. Budgets will feel the squeeze. Renewal costs will climb without negotiated discounts.
  2. No safety net. At renewal, everything resets to Level A pricing. Plus, anything not added to your Customer Price Sheet before October 31, 2025, will reset to Level A pricing on November 1st—no matter when your renewal date falls.
  3. The clock is ticking. If your EA is up in the next year, you need a plan now waiting until renewal puts you at Microsoft’s mercy.

This isn’t small print—it’s a structural change in how Microsoft prices its services.

How IT Leaders Can Get Ahead (with Quadbridge in Your Corner)

You don’t have to face these changes alone. Quadbridge helps IT leaders turn Microsoft’s shifts into opportunities to negotiate smarter and spend wiser:

  1. License Strategy Reviews – We pinpoint where costs will rise and build a proactive roadmap.
  2. EA Optimization – We identify unused or redundant licenses so you’re not paying for shelfware.
  3. Negotiation Leverage – Our in-house Microsoft experts know the playbook and help you secure better outcomes.
  4. Always-On Guidance – With a dedicated Quadbridge Technical Account Manager, you’re never blindsided by licensing shifts.

The Bottom Line

Microsoft’s new pricing model isn’t just a small tweak—it’s a reset. On November 1, 2025, anything not locked into your Customer Price Sheet goes straight to Level A pricing, no matter when your renewal is. And when renewal day comes, everything resets to Level A.

Translation: your budget is on the clock. The only way to protect your pricing is to act before the end of October.