Question 1

Microsoft told us our EA is going away — what do we do?

Accepted Answer

Microsoft has been steering many mid-market and enterprise customers from Enterprise Agreements toward the Microsoft Customer Agreement for Enterprise (MCA-E) and CSP. The move changes how you buy, how you true up, and what protections you have. Do not accept the new vehicle on Microsoft's timeline. Model the three-year cost under EA, MCA-E, and CSP, validate which discounts and concessions transfer, and use the transition as the negotiation moment — not as a forced migration.

Question 2

Is Microsoft 365 Copilot per user — and do we have to license everyone?

Accepted Answer

Microsoft 365 Copilot is licensed per user per month as an add-on for users with qualifying Microsoft 365 base licenses. You do not have to license every employee, but Microsoft's commercial pressure is to do exactly that. The right approach is to identify the user populations where Copilot returns measurable productivity, license those users, and resist 'wall-to-wall' commitments until adoption data justifies them.

Question 3

How are the 2025 and 2026 Microsoft price increases actually applied?

Accepted Answer

Microsoft has announced multiple price actions affecting Microsoft 365, Windows Server, and SQL Server through 2025 and 2026, with both list-price increases and the removal of certain discount programs. The practical impact varies by program (EA vs MCA-E vs CSP), region, and which products are in your stack. Renewal timing and term length materially change exposure — pulling forward or pushing back a renewal by even one quarter can shift seven-figure outcomes.

Question 4

Can I bring my own SQL Server or Windows Server licenses to AWS or Google Cloud?

Accepted Answer

Since the October 2019 outsourcing changes, Microsoft restricts BYOL for SQL Server, Windows Server, and several other products on AWS, Google Cloud, and Alibaba (the 'Listed Providers'). Licenses purchased after that date generally cannot be used on Listed Providers without dedicated tenancy and qualifying Software Assurance. Pre-October-2019 licenses with Software Assurance retain broader rights. The rules around 'Authorized Outsourcers' and Azure-only benefits like Azure Hybrid Benefit are where most cost surprises hide.

Question 5

What is the difference between a Microsoft SAM engagement and a Microsoft audit?

Accepted Answer

A SAM engagement is voluntary. A formal audit, invoked under your contract's verification clause, is not. Microsoft and its SAM partners often present SAM engagements as 'free' or 'helpful', but the data collected can be used to shape future deals or escalate to formal review. You can decline a SAM engagement; you cannot ignore a properly noticed contractual audit. Know which one you actually received before you respond.

Question 6

Do I need Windows Server CALs for users who only access Microsoft 365?

Accepted Answer

Microsoft 365 services like Exchange Online and SharePoint Online do not require Windows Server CALs. CALs are required when users or devices access on-premises Windows Server functionality (file shares, AD authentication for on-prem resources, RDS, etc.). The audit risk is mixed environments where users authenticate against on-prem AD or hit hybrid workloads without the correct CAL coverage.

Question 7

How is SQL Server licensed on VMware, and does Microsoft really charge for the whole cluster?

Accepted Answer

SQL Server is licensed per core (minimum 4 cores per VM) or via Server+CAL for Standard Edition. In virtualized environments without Software Assurance, you must license every physical core where SQL could run — which on a vMotion-enabled cluster can mean every host. With Software Assurance plus License Mobility, you can license per VM and move workloads within a server farm. Misalignment between vSphere DRS settings and SA coverage is one of the most common SQL findings.

Question 8

Are Microsoft audits actually increasing?

Accepted Answer

Yes. Microsoft and its appointed third-party auditors (Deloitte, KPMG, and others) have increased verification and SAM activity meaningfully since 2023, particularly around hybrid Microsoft 365 estates, SQL Server in non-Azure clouds, and Windows Server core compliance. The pattern correlates with Microsoft's broader push toward subscription models and Azure consumption.

Question 9

Can I drop Software Assurance to save money?

Accepted Answer

You can, but the trade-offs are larger than the line-item savings. Dropping Software Assurance ends rights like License Mobility, version upgrades, Azure Hybrid Benefit eligibility, planning services, and disaster recovery rights. For workloads heading to Azure or any cloud, SA is often the lever that determines whether your existing licenses still have value. Model SA decisions at the workload level, not the SKU level.

Question 10

What is the difference between EA, MCA-E, and CSP?

Accepted Answer

The Enterprise Agreement (EA) is Microsoft's traditional 3-year volume agreement with annual true-ups. The Microsoft Customer Agreement for Enterprise (MCA-E) is Microsoft's modern direct agreement, typically annual, with different price-protection and concession mechanics. CSP (Cloud Solution Provider) is a partner-led model with monthly or annual subscriptions. Each vehicle has different discounting norms, term protections, and exit options.

Question 11

Why is Microsoft pushing us off our EA?

Accepted Answer

Microsoft's strategic direction favors MCA-E and CSP because they shorten commitment windows, simplify Microsoft's revenue recognition, and reduce the negotiated protections customers built into legacy EAs. The pressure rarely reflects what is best for the customer. Treat any 'must move off EA' message as a negotiation opening, not a forced migration.

Question 12

Do MCA-E and CSP carry the same price protection as an EA?

Accepted Answer

Generally no. EAs traditionally included price-lock and discount-protection mechanisms across the 3-year term that MCA-E and CSP do not match by default. Many of those protections can be negotiated back in — but only if the customer asks and the deal is structured correctly.

Question 13

Can we mix CSP and EA at the same time?

Accepted Answer

Yes, and many enterprises do — using EA for stable enterprise workloads and CSP for flexible or partner-managed services. The trap is double-paying for overlapping entitlements, especially in Microsoft 365 and Azure, where the same user or workload can be inadvertently covered under both vehicles.

Question 14

What changed when Microsoft unbundled Teams from Microsoft 365?

Accepted Answer

Following EU regulatory pressure, Microsoft separated Teams from many Microsoft 365 and Office 365 enterprise plans, introducing 'No Teams' variants and Teams as a standalone SKU. The change has commercial consequences: list prices, included entitlements, and bundle discounts shifted, and renewals from the original bundle to the new structure often produce unexpected cost differences.

Question 15

Do we really need E5 to get value from Microsoft 365 Copilot?

Accepted Answer

No. Microsoft 365 Copilot requires a qualifying base license (Microsoft 365 E3, E5, Business Standard, Business Premium, or specific Office 365 SKUs). E5 is not a prerequisite. Microsoft sales motions frequently bundle Copilot with E5 upgrades to drive ARPU — the economics should be evaluated separately.

Question 16

How is Microsoft 365 Copilot governance handled from a licensing perspective?

Accepted Answer

Copilot accesses content the licensed user already has permission to see. Licensing does not change permissions, but adoption surfaces every gap in your Microsoft 365 information architecture. Most Copilot 'license problems' are actually data-governance problems exposed by the assistant. Plan governance before you license at scale.

Question 17

How are Windows Server cores counted?

Accepted Answer

Windows Server is licensed by physical cores, with a minimum of 16 cores per server and 8 cores per processor. CALs are required for users or devices accessing the server. In virtualized environments, Datacenter edition allows unlimited Windows Server VMs on fully-licensed hosts; Standard edition allows two OSEs per fully-licensed host and additional pairs with additional licenses.

Question 18

What is Azure Hybrid Benefit and how does it actually save money?

Accepted Answer

Azure Hybrid Benefit lets customers with Software Assurance use existing Windows Server and SQL Server licenses on Azure VMs and Azure SQL, reducing the Azure compute or PaaS price meaningfully. The savings can be material, but require accurate license tracking, current SA coverage, and disciplined assignment — gaps in any of those produce both compliance risk and missed savings.

Question 19

What is the SQL Server Subscription License and when does it make sense?

Accepted Answer

SQL Server Subscription is a term-based licensing option offered through specific vehicles, providing SQL Server with SA-equivalent rights for the subscription term. It can simplify mobility and cloud movement, but is not always lower cost over a 3-year horizon than perpetual + SA. Model both before defaulting to subscription.

Question 20

What is a Microsoft Azure Consumption Commitment (MACC) and what are the risks?

Accepted Answer

A MACC is a multi-year Azure spending commitment in exchange for incentives and discounts. The risk is over-committing — unconsumed spend at the end of the term is generally not refunded. MACCs should be sized against realistic Azure consumption forecasts, not Microsoft's aspirational ones, and include explicit clauses for what counts toward the commitment (third-party Marketplace, certain services, partner-managed workloads).

Question 21

Can Azure Reserved Instances be transferred or cancelled?

Accepted Answer

Azure Reservations can be exchanged or cancelled subject to Microsoft's policies, which have tightened over time. Recent changes have reduced flexibility versus the original Reserved Instance program. Reserve only the steady-state baseline; use savings plans or pay-as-you-go for variable workloads.

Question 22

Do Listed Provider rules affect us if we run Microsoft on AWS or Google Cloud?

Accepted Answer

Yes. Microsoft's post-October-2019 outsourcing terms restrict use of many Microsoft licenses on AWS, Google Cloud, and Alibaba Cloud without specific entitlements (typically pre-2019 licenses with SA, or dedicated hosting paths). If your hybrid strategy includes non-Azure clouds, audit your license vintages and SA coverage before assuming portability.

Question 23

What should we do when Microsoft requests a SAM engagement?

Accepted Answer

Do not treat it as routine. Ask Microsoft in writing whether the request is invoked under the verification clause of your agreement (an audit) or is a voluntary SAM engagement. If voluntary, you can decline or scope it. Do not share inventory data, run Microsoft scripts, or accept an MAPS partner before independent counsel reviews what is actually being asked.

Question 24

Who actually performs Microsoft audits?

Accepted Answer

Microsoft typically appoints a third-party auditor such as Deloitte, KPMG, or similar firms. They operate under engagement letters with Microsoft and have audit-defined access rights. They are not neutral — their findings drive Microsoft revenue, which is why independent customer-side representation matters at every stage.

Question 25

How long does a Microsoft audit usually take?

Accepted Answer

Microsoft audits and SAM engagements typically run from a few months to over a year, depending on scope, environment complexity, and how disciplined the customer's response is. Faster engagements usually mean more concessions given up; well-managed engagements take longer but produce materially better outcomes.

Question 26

When is Microsoft's fiscal year end?

Accepted Answer

Microsoft's fiscal year ends June 30, with quarter ends September 30, December 31, and March 31. Sales pressure peaks at fiscal year end. Customers with a documented position can convert that pressure into discounts and concessions — but only with months of preparation, not days.

Question 27

What Microsoft contract clauses should we always negotiate?

Accepted Answer

Watch for: removal of prior negotiated discounts and protections at renewal, price-protection language across the term, audit-scope and notice provisions, true-up/true-down mechanics, transferability across affiliates, exit and conversion rights between vehicles, and any 'as updated' references that allow Microsoft to change underlying terms unilaterally.

Question 28

How early should we start preparing for a Microsoft renewal?

Accepted Answer

For meaningful enterprise renewals, begin 12–18 months out. That window allows entitlement reconciliation, usage benchmarking, alternative-vehicle modeling, and a structured negotiation timeline that does not rely on Microsoft's quarter-end pressure to close.

Question 29

Are the announced Microsoft price increases negotiable?

Accepted Answer

List-price increases are usually not negotiable, but the discounts, concessions, term commitments, and bundling that determine your actual net price absolutely are. Many customers leave 10–25%+ on the table by accepting list-price-driven proposals without restructuring the deal.

Question 30

Should we extend our current EA to delay a price increase?

Accepted Answer

Sometimes — extensions and bridge agreements can be useful tactical tools, especially when paired with explicit price-protection language. But extensions can also be a way for Microsoft to lock in current pricing on their terms while removing your option to restructure. Treat extension proposals with the same scrutiny as a full renewal.

Microsoft licensing questions, answered straight.

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