In a move that Microsoft refers to as “standardizing prices” for its online services, the company is scrapping long-standing volume discounts that big buyers have relied on for years. Beginning November 1, 2025—or at a customer’s next renewal—prices for suites such as Microsoft 365, Dynamics 365 and Windows 365 will align with the rates listed on Microsoft.com. On-premises software is untouched, and pricing for U.S. government and global education customers will remain at current levels.

“This update builds on the consistent pricing model already in place for services like Azure and reflects our ongoing commitment to greater transparency and alignment across all purchasing channels,” the company explained.

While Microsoft frames it as transparency, in practical terms this shift retires programmatic discounts embedded in Enterprise Agreements (EA) and other volume programs, and collapses the price tiers that historically rewarded larger seat counts. Microsoft says the change will reduce licensing complexity so partners can spend less time deciphering price grids and more time delivering services.

However, Directions on Microsoft’s Mary Jo Foley opined that “neither customers nor licensing experts buy that explanation.” Rather, “they say the move is part of Microsoft’s ongoing push to move all but the largest commercial customers from EAs to other types of channels like Microsoft Customer Agreements (MCAs) and MCAs for Enterprise (MCA-E).”

In essence, “By eliminating volume discounts and taking the biggest customers direct, Microsoft will be able to grow its services revenues faster,” she noted.

Industry analysts forecast higher invoices for some of Microsoft’s largest SaaS customers. These top SaaS suites could raise fees more than 10% for large enterprise customers.

While Microsoft didn’t clarify this, negotiated pricing is still a factor. As Directions on Microsoft‘s Rob Horwitz noted, “it is still important to assemble and manage your internal contract negotiation team, clarify your current use and future needs for Microsoft products, understand the special concessions that you got last time that must be maintained, and develop financial models for various scenarios.”

Partner sellers will face their own challenges. Microsoft says simpler, standardized pricing frees them to differentiate on services rather than deal mechanics. While that might mean less overhead admin, partners will have less slack to create customized, discounted bundles that have been popular with buyers.

The price boost comes amid heightened scrutiny of Microsoft’s market power in cloud and software bundling, particularly in Europe. As reported on Techstrong.it, U.K. regulators recently criticized licensing terms that, in their view, tilt cloud infrastructure competition against rivals when Microsoft software is part of the stack. Several European public-sector buyers have already tested exits from Microsoft productivity suites.

Of course grumbling about Microsoft’s grip on the enterprise productivity sector is perennial among enterprise buyers, but will this price increase cause a significant shift among lucrative U.S. customers? Possibly, but not probably. The large enterprise market is particularly tied into the convergence story that Microsoft offers, with ERP and CRM and identity solutions all interoperating. Now with Copilot AI emerging as a force—though plagued by inconsistency—this convergence remains strong.

The other possible factor at play: as companies grapple with surging spending on AI, this additional price increase for SaaS could be particularly unpopular. It appears that large enterprise will need some way to cut costs, streamline operations, or some combination thereof. Clearly some number crunching will be happening as the SaaS prices go up.