Microsoft sells through four primary agreement types in 2026. MPSA (Microsoft Products and Services Agreement) is closed to new business, restricted to legacy renewals only. CSP (Cloud Solution Provider) is the partner-led model with monthly or annual New Commerce Experience pricing. MCA (Microsoft Customer Agreement) is direct billing through Microsoft, available in MCA standard and MCA-E (Enterprise variant). EA (Enterprise Agreement) is the legacy 3-year commitment, still active for renewals of accounts with $500K+ annual spend. The 2026 buyer choice is between CSP for under $1M annual spend, MCA-E or EA renewal for $1M to $25M, and MCA-E with CTP for $25M+.
This page is the 2026 decision reference for the four Microsoft agreement types. Eligibility, billing mechanics, discount levels, term and exit terms, and the per-org-profile decision tree. Built from Microsoft's commercial documentation (May 2026), the New Commerce Experience policies, and advisor-led Microsoft agreement structuring during 2024 to 2026.
2026 agreement type snapshot
| Agreement | Status 2026 | Eligibility | Term | Billing |
|---|---|---|---|---|
| MPSA | Legacy renewals only, closed to new business as of July 2025 | Existing customers only | Indefinite, perpetual | Order-by-order, no term commitment |
| CSP (NCE) | Active for all customer sizes | Any organisation, through partner | Monthly, annual, or triennial | Through CSP partner, partner-billed |
| MCA standard | Active for small to mid-market | Any organisation, direct | Annual or 3-year (commitment-based) | Direct from Microsoft |
| MCA-E (Enterprise) | Active, replacing EA for new enterprise commitments | $500K+ Microsoft spend, enrolled enterprise | 3-year typical | Direct from Microsoft |
| EA (Enterprise Agreement) | Renewals only, no new enrolments after October 2024 | Existing EA customers | 3-year | Through Microsoft LSP partner |
The strategic context: Microsoft has been consolidating its commercial frame since 2018. EA was reduced to renewals only. MPSA was closed to new business in mid-2025. The unified replacement is MCA, with MCA-E as the enterprise variant intended to take EA's place at renewal. CSP under NCE rules covers everything else, from single-seat SMB through to multi-billion-dollar partner-led enterprise.
MPSA: legacy renewals only
Microsoft Products and Services Agreement was launched in 2014 as a perpetual purchasing vehicle. No term commitment, no enrolment, no anniversary cycle. Customers placed orders against the master MPSA agreement and paid for what they bought. MPSA supported on-premise perpetual licences, server licences with Software Assurance, and a limited set of online services through the Microsoft Volume Licensing Service Center.
MPSA was closed to new business in July 2025. Existing MPSA agreements can still process renewals on existing licence purchases and Software Assurance, but new SKU additions outside the existing agreement scope are not permitted. Customers with active MPSA agreements should plan migration to MCA or MCA-E within 24 to 36 months.
The MPSA migration is consequential. MPSA delivered no consumption-based discounts, no MACC eligibility, and no Azure Hybrid Benefit integration with cloud commitments. Customers running cloud workloads through MPSA-purchased Windows or SQL Server licences (claiming AHB) typically save 8 to 15 percent of total Microsoft spend by re-papering to MCA-E with an Azure commitment.
CSP under New Commerce Experience
The Cloud Solution Provider programme is Microsoft's partner-led commercial frame. CSP customers buy Microsoft cloud services through a Microsoft partner, who handles provisioning, support, and billing. CSP supports Microsoft 365, Dynamics 365, Power Platform, Windows 365, and Azure.
The New Commerce Experience rules apply to all CSP commerce as of January 2022 (M365/D365/Power) and July 2023 (Azure). NCE replaced the legacy CSP commercial model. Key NCE features.
- Term options: monthly, annual, triennial. Monthly is invoiced at a 20 percent premium over annual list. Triennial locks the discount for three years.
- Cancellation: 7-day cancellation window after order placement. After day 7, the term commitment is binding. No mid-term cancellation, no true-down.
- Upgrade and downgrade: upgrade to a higher SKU mid-term is permitted with the new SKU billed at the term rate. Downgrade is not permitted mid-term.
- Seat counts: seats can be added mid-term at the term rate (pro-rated to remaining months). Seats cannot be reduced mid-term.
- Auto-renewal: annual and triennial terms auto-renew at the then-current price unless cancelled in advance.
CSP is the right answer for organisations under approximately $1M annual Microsoft spend, organisations that want partner-led delivery and support, and organisations that need the flexibility of monthly term despite the 20 percent premium. CSP scales up to multi-million-dollar enterprise spend, but at the upper end the MCA-E path typically delivers better unit pricing and direct commercial negotiation power with Microsoft.
MCA: Microsoft Customer Agreement
MCA is Microsoft's direct-billing commercial framework, designed to replace the patchwork of agreement types over time. MCA covers Azure consumption, Microsoft 365 subscription, Dynamics 365, and Power Platform purchases. The agreement is signed once and persists; subsequent purchases are made under the master agreement.
MCA standard is available to any customer signing directly with Microsoft. Pricing is list price plus standard volume tier discounts that apply to specific seat counts. Azure is billed pay-as-you-go unless a Reservation, Savings Plan, or MACC is added. There is no consolidated 3-year commitment in MCA standard.
MCA-E (the Enterprise variant) requires a $500K minimum annual Microsoft spend commitment. MCA-E unlocks MACC eligibility, level pricing for Microsoft 365 (level A under 2,400 seats, level D over 15,000 seats), the same Reservation and Savings Plan discount tables, and the ability to add CTP terms for strategic accounts. MCA-E is the modern replacement for EA at renewal.
MCA-E and EA at renewal: Existing EA customers approaching renewal in 2026 face the choice of renewing the EA (still possible) or re-papering to MCA-E. Microsoft is actively steering EA renewals to MCA-E. The decision tilts to MCA-E when Azure spend is material and MACC integration matters, and stays on EA when the customer values the consolidated 3-year true-up cycle on perpetual licences with Software Assurance.
EA: Enterprise Agreement renewals
The Enterprise Agreement has been the dominant enterprise Microsoft contract since 1996. EA is a 3-year commitment with annual true-ups, consolidated billing, level-based volume pricing, and a wide range of bundled products. EA also supports the legacy Enterprise Enrollment with Software Assurance, the Server and Cloud Enrollment (SCE), the Enrollment for Education Solutions (EES), and a small set of specialty enrollments.
New EA enrolments were closed in October 2024. Existing EA customers can renew at 3-year cadence into the same EA framework as long as Microsoft chooses to maintain the EA renewal pathway. Microsoft has stated commitment to EA renewals through 2027 but has not committed beyond that horizon.
EA strengths in 2026: level-based pricing with substantial volume discount (Level D customers see 10 to 18 percent below MCA standard pricing on Microsoft 365), the 3-year true-up calendar that allows seat growth without mid-term commitment changes, integration with on-premise perpetual licences with Software Assurance, and consolidated billing through a Microsoft Licensing Solution Provider partner.
EA weaknesses in 2026: limited support for newer cloud services (some recent Azure services and Power Platform variants require MCA-E for full integration), no native MACC support (MACC is layered on top), and the partner intermediation reduces direct commercial negotiation power with Microsoft on bespoke terms. EA is also priced in USD by default for many customers, with currency exposure on multi-year commitments.
The per-org decision tree
| Customer profile | Recommended agreement | Why |
|---|---|---|
| Under 100 seats, under $200K annual spend | CSP NCE (annual term) | Partner support, simple commercial frame, minimal commitment |
| 100 to 500 seats, $200K to $750K annual | CSP NCE annual, or MCA standard | Compare partner-led CSP economics against MCA direct; partner discount often closes the gap |
| 500 to 2,400 seats, $750K to $3M annual | MCA-E or CSP NCE triennial | MCA-E unlocks MACC; CSP NCE triennial captures most of the discount with partner relationship |
| 2,400 to 15,000 seats, $3M to $15M annual | MCA-E (or EA renewal if existing) | Level B and C pricing material; MACC eligibility important; direct Microsoft commercial negotiation power |
| 15,000+ seats, $15M to $25M annual | MCA-E with MACC | Level D pricing, full MACC tier discount, direct Microsoft executive engagement |
| $25M+ annual | MCA-E with CTP | Bespoke discount table, professional services credits, custom exit terms |
| Education sector | EES enrolment | Education-specific pricing and SKUs not available in commercial agreements |
| Government and public sector | EA or MCA-E with FedRAMP/GCC alignment | Government Community Cloud requirements drive specialty enrolment |
The EA-to-MCA-E migration question
The most consequential 2026 commercial decision for many enterprises is whether to renew EA or migrate to MCA-E at the next renewal. The decision is not purely commercial; operational and timing factors matter.
Migrate to MCA-E when: Azure spend is over 40 percent of total Microsoft spend, MACC integration is material, the organisation has direct commercial relationship with Microsoft enterprise team (not exclusively through an LSP partner), and the SKU mix is cloud-centric with limited on-premise perpetual licence exposure.
Renew EA when: on-premise Windows Server, SQL Server, and other perpetual licences with Software Assurance represent a material portion of spend; the existing LSP partner relationship is high-value; the 3-year true-up cycle aligns with budgeting practice; and the organisation wants to defer the MCA-E learning curve.
The migration itself is non-trivial. MCA-E uses a different SKU catalogue, a different billing structure, a different administrative portal, and different terms for some service categories. Plan 6 to 9 months of transition activity for a $10M-scale Microsoft estate, including financial-model rebuilding, partner-engagement re-papering, and admin-portal cutover.
2026 negotiation levers
The agreement type is itself a negotiation lever. Three patterns deliver material savings.
First, MCA-E versus EA at renewal. Microsoft's commercial team in 2026 has stronger incentives to land MCA-E than to renew EA. Customers that credibly threaten the MCA-E migration at EA renewal typically capture 3 to 7 percent additional discount versus the previous EA term.
Second, CSP triennial versus CSP annual. Triennial CSP locks the discount and protects against Microsoft list price escalation (typically 4 to 8 percent per year on Microsoft 365). The triennial commitment saves 12 to 18 percent over three years against repeated annual CSP renewals.
Third, MCA-E plus MACC plus CTP integration. For organisations approaching $10M annual Microsoft spend, the MCA-E plus MACC plus CTP commercial wrapper delivers structurally better unit pricing than any other combination. Negotiating the three components together rather than sequentially captures additional integration discount of 2 to 5 percent.
For the broader Microsoft commercial framework see Microsoft EA Complete Guide, Microsoft NCE Pricing 2026, Azure MACC vs CTP, the Microsoft vendor hub, and our software licensing advisory service.