Upcoming changes to Microsoft Volume Licensing discounts - effective 1st November 2025
What’s happening?
As of the 1st of November 2025, Microsoft is removing volume-based pricing tiers for all online services under Enterprise Agreements (EA), MPSA, and OSPA (China). There will be many services, such as Microsoft 365, Office 365, Dynamics 365, and GitHub, that will no longer be available for discounted rates. That means every business will now pay the Level A list price, regardless of user count, effectively removing the current B, C, and D discount bands.
Who will be affected?
These changes will impact any organisation with 2,400 or more users on cloud subscriptions.
- 2,400–5,999 users: expected increase of ~6%
- 6,000–14,999 users: expected increase of ~9%
- 15,000+ users: expected increase of ~12%
To put that into context: an enterprise organisation with 25,000 users on an E5 plan could be facing an additional £2 million (approx.) in annual expenditure.
Why this change matters
This is not just another price hike, it is a structural shift to standardise pricing across all cloud customers. Microsoft has already trialled this model with Copilot licensing, setting a clear precedent.
- Loss of historical volume pricing means less reward for scale.
- Budget forecasting becomes more complex as renewal ceilings rise.
- Strategic procurement is now business-critical, not just advantageous.
How we can help you stay ahead
Using advanced optimisation and governance tools, Wavenet gives you full visibility of your Microsoft 365 and Azure environments. We identify unused or under-utilised licences, right-size users to the most cost-effective plans, and remove wasted spend before it hits your budget. Our experts track adoption to ensure you’re getting maximum value from your investment, highlight and close security gaps, and pinpoint ways to optimise Azure consumption. With clear reporting and tailored guidance, we help you control costs, strengthen security, and get the best possible return on your Microsoft cloud investment, even in a post-discount world.
Take action before it’s too late
Renewal planning has never been more critical, and the pivotal date is looming. If your agreement is expiring before or around November 2025, the time to act is now.
