“We’ll Handle It at Renewal”: Why That Strategy No Longer Works

In the old Microsoft world, waiting until 90 days before renewal was risky. In the new Microsoft world, it’s reckless.
 

The Game Has Changed. Have You?

Enterprise Agreement (EA) renewals with Microsoft used to follow a familiar rhythm:

• Wait until the 90-day mark
• Negotiate volume discounts
• Add a few upsells
• Sign and move on

But that playbook no longer works.

As of November 1, 2025, Microsoft is eliminating volume-based online service discounts in EA renewals, and we’re already seeing the effects ripple through mid-sized and global organizations.

The real impact? The “we’ll handle it later” approach just became the most expensive move you can make.
 

The Danger of Doing Nothing Now

If your EA renewal is 6, 12, even 18 months away, it may feel like there’s time to wait. But Microsoft’s new licensing policy doesn’t care about your timeline.

Here’s what happens if you don’t act by November 1:

• Unpriced services will default to level A pricing (i.e., lowest discount tier)
• You’ll lose negotiation leverage tied to volume
• You’ll lock in higher pricing for the next 3–5 years
• You’ll miss the opportunity to right-size or migrate to CSP under better terms

Worst of all, you’ll walk into renewal meetings blind and with no optimization strategy and no defensible data.
 

Old Strategy vs. New Reality

Why Waiting Is So Costly

Let’s do the math.

A typical EA includes:

• Microsoft 365: E3/E5 licensing
• Azure: IaaS/PaaS workloads
• Power Platform, Security, Copilot

Now add a 15–25% price increase due to lost volume-based discounts.

Then add:

• Overprovisioned M365 licenses
• Unused Azure reservations
• Teams that don’t know what they’re using or why

That’s how enterprises are burning six or seven figures without even realizing it.
 

What Smart Enterprises Are Doing Instead

• Running optimization scans today to baseline waste and usage
• Modeling pricing scenarios across EA, CSP, MCA-E
• Forecasting Azure consumption with real data
• Tracking license rightsizing over time (not just at true-up)
• Building renewal-ready dashboards that speak to CIOs and CFOs

They’re not waiting for Microsoft to tell them what’s next — they’re showing up early for their renewals and showing up ready, strategic, and armed with intelligence.
 

Real Talk: This Is Not Just Procurement’s Job Anymore

Microsoft EA renewals now sit at the intersection of IT, finance, procurement, and executive leadership. Every decision has:

• Budget implications
• Governance risks
• Cloud strategy impacts

If you’re waiting for the “renewal team” to magically align all of that in 3 months, you’re already behind.
 

What You Can Do This Week

1. Review your Customer Price Sheet (CPS) – What’s priced in? What’s not?
2. Run a Health Check – Identify unused licenses and zombie workloads
3. Schedule a Scenario Planning Session – Compare EA, CSP, MCA-E
4. Build your renewal roadmap – Including service plans and co-terming
5. Loop in your finance team – Early

Bottom Line: Renewal Readiness Starts Now

Microsoft is removing your discount cushion. The only way to protect your spend and justify your renewal is to optimize what you already use and forecast what you’ll need next.

The earlier you start, the more control you have.

The later you wait, the more painful the outcome.
 

How Surveil Helps

Surveil gives you the tools to run renewal scenarios, surface optimization insights, and track usage down to the department level. And all before Microsoft sets the terms.

🎯 Forecast your real Azure and M365 usage
🛠️ Simulate renewal pricing models with our EA to CSP tool
📊 Use Contract Center to build a defensible Bill of Materials
📅 Centralize renewal tracking with alerts and co-term views
 

✅ Take Control of Your Microsoft EA Renewal

Microsoft’s November 1st licensing change is just weeks away. Whether your renewal is near or months out, the window to build leverage is closing.
 

👉🏼 Book a Microsoft Licensing Readiness Session to:

• Uncover usage-based savings that can fund your transition
• Run EA-to-CSP scenarios using your real tenant data
• Navigate Microsoft’s new pricing model with confidence
• Get a clear action plan — no fluff, no pressure e

 

🎥 Not ready to talk yet? Watch our executive briefing on-demand: “Microsoft’s New Pricing Model: How to Respond with Precision, Not Panic” It’s a must-watch for CIOs, procurement, and finance leaders preparing for renewal.
 

📚 Still have questions? Visit our Microsoft Licensing FAQ Hub for answers to common EA and CSP transition concerns.