Microsoft’s Licensing Shift – What It Means for African Businesses

Microsoft has officially started moving away from its traditional Enterprise Agreement (EA) licensing model, and this change is already affecting businesses across Africa. Whether you're a mid-sized company in Kenya, a large enterprise in Nigeria, or a growing tech firm in South Africa, this shift could impact how you plan, purchase, and manage your Microsoft cloud services.

For years, EA licensing was the go-to model for organizations with 500+ users or devices. It offered predictable pricing, volume discounts, and long-term contracts. But as Microsoft continues to push toward a cloud-first future, they’re encouraging businesses to transition to more flexible models like the Cloud Solution Provider (CSP) program or the Microsoft Customer Agreement for Enterprise (MCA-E).

So, what’s changing?

First, EA renewals are being phased out for most small and mid-sized businesses. Microsoft is standardizing pricing across the board, meaning that even large enterprises now pay Level A pricing—effectively removing the volume-based discounts that many relied on. This could lead to cost increases of anywhere between 6–12%, depending on your current setup.

Second, resellers and licensing partners who previously earned commission through EA deals will need to pivot. Microsoft is shifting the focus to partner-led services and value-added support, which means partners must now deliver more than just licensing—they need to offer strategic guidance, optimization, and ongoing support.

Why is this happening?

Microsoft’s licensing overhaul is designed to simplify the buying process and better align with how businesses consume cloud services today. EA was built for static, on-premise environments. But in today’s dynamic landscape, companies need licensing models that can scale up or down quickly, support remote work, and integrate seamlessly with cloud platforms.

For African businesses, this presents both a challenge and an opportunity. On one hand, budgeting becomes more complex without long-term price locks. On the other, CSP offers monthly flexibility, easier license management, and the ability to work closely with a trusted partner who understands your local market and business needs.

At TEC IT, we’re already helping businesses across the continent navigate this transition. Whether you’re looking to optimize your Microsoft licensing, explore CSP benefits, or simply understand what this means for your organization, we’re here to support you every step of the way.

If you haven’t reviewed your EA agreement yet, now’s the time. Let’s make sure your licensing model is future-ready and aligned with your business goals.

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