By Jon Oates | Trace3 Manager of Cloud FinOps Business Operations and Christopher Tilstra | Trace3 Senior Cloud FinOps Consultant
Microsoft's most substantial licensing change went into effect on November 1st, 2025, and the impact has many organizations still in a period of adjustment. On that date, Microsoft eliminated EA waterfall discounts and moved to standard pricing for Online Services, changing how many companies must buy and manage their licensing services. While Azure pricing itself has remained steady, this shift creates ripple effects throughout Microsoft spend and makes strategic Azure management more crucial than ever before.
As a Microsoft Cloud Solution Provider (CSP), Trace3’s program is designed to help organizations not just survive but thrive in this new reality. We do this by combining Azure resale with expert licensing management and FinOps services, creating a comprehensive approach that delivers the flexibility, cost control, and operational efficiency.
Microsoft's Online Services Pricing Consistency Update eliminated those familiar EA tier-based discounts companies had grown accustomed to over the years. By aligning all Online Services SKUs to Level A pricing and matching public list rates, Microsoft made a clear statement about their direction. This move reinforces their "volume to value" strategy, which means they're now prioritizing adoption and smart consumption practices over simply how much you're willing to purchase upfront.
What does this mean in practical terms? Those EA volume discounts many organizations relied on are now a thing of the past, making working with a CSP a more flexible and often more competitive alternative for Online Services. The days of negotiating based purely on purchase volume are over. Now it's all about usage patterns and commitment levels. Also, losing those discounts on M365, Security, and Power Platform SKUs means licensing and cloud consumption optimization have become even more important for controlling your overall IT costs.
Even though Azure pricing didn't change, the ripple effects are more significant than many organizations initially realized. Consumption discipline now matters more than it ever has before, as your total Microsoft spend likely will rise due to increased costs for Online Services. Azure and licensing cost optimization governance that starts with visibility and requires comprehensive and accurate utilization metrics has moved from a nice-to-have to an absolute top priority.
Trace3's CSP program offers more flexible savings on Azure than traditional MACC options. You can have month-to-month terms rather than being locked into long-term agreements, while still receiving flat discounts. Consolidated billing for Azure, M365, and security services simplifies budgeting with a single, predictable invoice. This makes Azure CSP an excellent fit for businesses that prefer to avoid three-year commitments, providing additional flexibility for organizations with dynamic or evolving cloud needs. Additionally, choosing CSP is ideal when you want a partner actively working on your behalf to find the best solutions for your business, ensuring your cloud strategy is tailored to your unique requirements and goals.
What sets Trace3 apart is we can manage both your Azure resale and Microsoft licensing needs, creating a unified approach that goes far beyond simple procurement. Our team brings deep expertise in navigating the post-November 2025 pricing model, helping you build a licensing roadmap that aligns with your cloud transformation goals while ensuring compliance and predictability across all your Microsoft services.
We serve as your strategic advisors, helping you model future Microsoft spend under the new pricing structure and identifying real opportunities for savings and operational efficiency. Our executive-ready reporting and insights ensure leadership stays informed and can make data-driven decisions about your cloud strategy.
Every renewal moving forward will be impacted by the changes Microsoft made in November 2025. Organizations that act now can avoid unpleasant cost surprises and position themselves for sustained success in this new environment. The landscape has shifted, but with the right partner and strategy, these changes can become opportunities rather than obstacles.
Reach out to us at CSPLicensing@Trace3.com to discuss whether our CSP program would be beneficial for your organization’s unique needs and goals. We’re here to help you determine the best fit for your cloud strategy.
Jon Oates is a Manager of Cloud FinOps Business Operations at Trace3, where he has led the Microsoft Cloud Solution Provider (CSP) program for the past five years. In this role, Jon partners closely with finance, operations, and technical teams to help customers navigate Microsoft’s cloud programs, optimize cloud spend, and operationalize scalable, compliant cloud solutions. With deep hands‑on experience in CSP operations, invoicing models, partner motions, and Microsoft program alignment, Jon brings a practical, operator’s perspective to complex cloud topics.
Christopher Tilstra is a Senior Cloud FinOps Consultant at Trace3, specializing in cloud financial management, cost optimization, and Microsoft licensing strategy across Azure and Microsoft 365 environments. Christopher partners with customers to improve cost transparency, optimize cloud spend, and implement scalable FinOps practices that support long‑term business outcomes. With a strong background in Azure subscription management, enterprise licensing optimization, and financial governance, Christopher helps organizations make informed, cost‑effective decisions as they mature their cloud programs.