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

Organizations Facing 40–60% Price Hikes

Name: Organizations Facing 40–60% Price Hikes
Uploaded: 2025-10-23T13:01:15+00:00
Duration: 1 min 16 s
Channel: Mike Austin
Description: In this monologue, the speaker warns that Microsoft’s upcoming 2026 Enterprise Agreement (EA) renewal cycle is set to become the most expensive ever due…

23 Oct 2025 · 1 min

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1:16

In this monologue, the speaker warns that Microsoft’s upcoming 2026 Enterprise Agreement (EA) renewal cycle is set to become the most expensive ever due to the elimination of price tiers. Currently, Microsoft EA pricing has four levels (A‑D) with 5‑7% price differences between them for Microsoft 365 products. The announced removal of some tiers—though the specific products have not yet been disclosed—has sparked market speculation that all M365 subscriptions (including M365 E5, Project Online, Dynamics, Visio, Power Apps, etc.) could lose the tier‑based discounts and face substantial price hikes, potentially in the 40‑60% range. Microsoft claims the change aims to achieve price parity, a strategy that began earlier with the Copilot pricing adjustments.

Chapters

We're definitely going to focus very heavily on that. And so why this is important is Microsoft is setting 2026 up to be the most expensive renewal cycle we've ever seen. The change that they made, you know, they're eliminating price tiers. And what that means is right now Microsoft in an EA has four price levels. Level A, level B, level C, level D. And between those on the Microsoft 365 product, there's anywhere between about 5 and 7%. So if a product is $100 on Level A, it's probably 93 or, you know, between 93 and 95 on B, et cetera, et cetera. Now, they've announced that they're eliminating some of those price tiers. Now, they also have not, as of today, announced which products they're eliminating this on. But there's speculation in the market that it's going to be all of the subscriptions. So your M365E5s, your project onlines, your dynamics, your vizios, your powerapps, all of that. So there is speculation that it's going to be all products that are in the M365. Now, Microsoft said they're doing that to get price parity, but they started this actually with Copilot.