Mike AustinFounder & CEO, Metrixdata 360 Inc. · Mike Austin | Helping enterprises take control of software costs through data, strategy, and relentless execution

Azure MAC Negotiation Strategies

Name: Azure MAC Negotiation Strategies
Uploaded: 2025-10-18T01:00:38+00:00
Duration: 1 min 17 s
Channel: Mike Austin
Description: Microsoft's Microsoft 365 E5 pricing tiers have erratic discounts that break historical patterns. A Level B customer with 2,400 users now faces an…

18 Oct 2025 · 1 min

Watch on YouTube

1:17

Microsoft's Microsoft 365 E5 pricing tiers have erratic discounts that break historical patterns. A Level B customer with 2,400 users now faces an $87,000 annual increase, while larger customers see jumps of $200,000 or more as they cross tier thresholds.

Chapters

So in some circumstances in level A customer may not be impacted, but on other products they potentially will be impacted. Now if you look level B, you get about a 5% discount from Level B to Level A and it's 53.988% from Level A to C. So you can see Microsoft didn't even give equal discounts across the board on this. This is something that I've been harping on them for years. It used to be consistently 5%. Actually it used to be 7 to 8% per level, but they gave level B 5%, 3 between C and 3 between D. Right? Now if you look on the user column, that is the number of users that are in the price level band. So level A, EA is 500 to 2,399 people, level B, 2400 to 599 etc. And so if you just look at the impact to a level B customer, the smallest level B customer is facing about an $87,000 per year increase on just their Microsoft 365 E5 SKUs. This is not everything in the package. Up to about 200,000 for that band. And as you grow, obviously this becomes seven and eight figures.