If your organization has a Microsoft Enterprise Agreement (EA), you might assume you’re getting the best deal. After all, EAs are designed for large-scale purchases. They come with volume discounts, predictable costs, and centralized billing.

But here’s the reality: many organizations are quietly overspending under their EA—and don’t even realize it.

When an EA Stops Working in Your Favor

Enterprise Agreements made sense when most employees worked on a single company-issued device in a single office. But that world no longer exists. Today’s workforce expects access across multiple devices—laptops, phones, tablets, even shared workstations.

And here’s the catch: EAs are typically billed per device.

So, if an employee uses three devices, you may be paying for three separate licenses. That adds up—fast.

CSP: A More Modern (and Cost-Efficient) Model

The Cloud Solution Provider (CSP) model flips this. CSP is charged per user, not per device. That means one license covers an employee’s entire ecosystem—regardless of how many devices they use.

In a world of hybrid work, flexible schedules, and cross-device access, CSP is simply a better fit for how people actually work.

Common EA Cost Pitfalls

When we assess Enterprise Agreements, these are the overspending patterns we most often uncover:

  1. Device-based billing: You’re paying for multiple devices per user, instead of a single per-user license.
  2. Inactive licenses: Old user accounts or unused devices still assigned active licenses.
  3. Overly rich SKUs: Employees have features they don’t use like Power BI Pro or audio conferencing—when lighter options would do.
  4. License creep: Licenses added during growth periods, but never trimmed back after turnover or restructuring.

In one recent assessment, a mid-sized organization saved 21% annually by switching from an EA to CSP with no loss of functionality. The difference? A shift to per-user billing and better alignment to real-world usage.

EA vs. CSP: What’s the Real Difference?

Category Enterprise Agreement (EA) Cloud Solution Provider (CSP)
Minimum Size 500+ users/devices (250+ in public sector) No minimum – ideal for SMBs and mid-market
License Basis Per device Per user
Term 3-year commitment Monthly, Annual, Tri-Annual
Flexibility Annual true-ups Add/remove licenses based on terms
Support Microsoft support (additional cost) Included through your CSP partner
Azure Billing Pre-committed usage with true-ups Monthly pay-as-you-go, Reserved Instances
Access to New Tools Slower to adopt new SKUs Rapid access to innovations like Copilot or Fabric

Why Organizations Are Making the Switch

For many businesses, CSP delivers:

  1. Lower total cost of ownership, thanks to per-user billing
  2. Faster access to Microsoft innovation, including new security and AI tools
  3. No more over-licensing, with real-time license adjustments
  4. Better support, often directly from a partner who knows your environment

And because it can be month-to-month, you’re never locked into a model that no longer fits your business.

What You Should Do Before Your EA Renews

Even if your EA isn’t ending this year, it’s a smart move to get ahead of it. A Microsoft Licensing Assessment can help you:

  1. Compare your current cost structure with per-user CSP pricing
  2. Identify unused or underutilized licenses
  3. Build a roadmap for modernizing your licensing model
  4. Get expert recommendations tailored to your business and goals

The Bottom Line

Enterprise Agreements were built for the workplace of yesterday. Today, with users needing seamless access across multiple devices, a per-device billing model no longer makes financial sense for most organizations.