By Jon Oates & Bri Cavanaugh | Trace3 FinOps Team
As technology advances and consumer expectations rise, businesses must remain agile, leveraging cloud services that align with their unique requirements. Cloud leaders like Microsoft are constantly innovating—listening to customer needs and developing solutions that anticipate challenges before they even arise.
At Trace3, our FinOps team stays focused on the latest industry trends by attending key conferences around cloud technology, best practices, and the future of digital transformation. This year, we were on the ground at Microsoft Ignite in Chicago, where exciting announcements continue to shape the future of cloud services. Below, we break down the most impactful takeaways from the event, covering AI, Microsoft Fabric, Azure Local, and Enterprise Agreements—offering insights into what’s next for businesses navigating the cloud ecosystem.
Microsoft made significant changes to its Enterprise Agreements (EA), that went into effect January 1, 2025. Many existing EA customers—particularly those with Azure Subscriptions—no longer have the option to renew under the current framework.
Now, all Azure Subscriptions under an EA will transition to either a Microsoft Customer Agreement for Enterprise (MCA-E) Subscription or a Cloud Solution Provider (CSP) Subscription. Additionally, if an EA includes M365/O365 licensing that relies on Azure Spend to maintain EA eligibility, those licenses will also be migrated to Microsoft Commercial Direct licensing or CSP Licensing.
Beyond Azure-related agreements, Microsoft is introducing broader shifts to M365/O365 Enterprise Agreements, particularly affecting lower-level EA contracts. While specific details remain limited, this change primarily impacts clients in Level A (500-2,399 users) and Level B (2,400-5,999 users), who will also have the option to transition to Microsoft Commercial Direct licensing or CSP licensing.
Understanding MCA-E vs. CSP vs. Microsoft Commercial Direct
With these Enterprise Agreement (EA) changes, organizations will need to evaluate their options for managing Azure and M365/O365 licensing. Microsoft offers three primary engagement models, each with distinct benefits and considerations:
Microsoft Customer Agreement for Enterprise (MCA-E):
MCA-E is positioned as the digital evolution of the traditional EA, offering a direct engagement with Microsoft. Unlike Microsoft Commercial Direct, MCA-E allows for special pricing negotiations with the Microsoft team assigned to your organization. Additionally, MCA-E customers can opt into Microsoft’s Unified Support Model, which includes three tiers: Core, Advanced, and Performance (pricing varies by tier).
Cloud Solution Provider (CSP) Program:
Microsoft is actively encouraging organizations to explore the CSP program, which provides greater flexibility and scalability compared to MCA-E or Microsoft Commercial Direct. Partnering with a CSP offers enhanced support and expertise, giving organizations access to a dedicated team of Microsoft specialists who can help optimize their cloud strategy.
Microsoft Commercial Direct:
For organizations seeking the simplest engagement model, Microsoft Commercial Direct provides a straightforward licensing approach for Azure and M365/O365. However, this option does not include negotiation or discounting, and all support services remain the responsibility of the organization.
Microsoft introduced CoPilot Agents, a game-changer in AI-driven business process automation. These agents are designed to scale individual impact and boost productivity by seamlessly integrating Copilot Studio and Azure AI Foundry closer. With access to over 1,800 AI models, organizations can now bring their own model (BYOM) or bring their own language (BYOL) to tailor AI solutions to their specific needs.
Microsoft is doubling down on its vision for a unified analytics platform with Microsoft Fabric, with Fabric Databases (preview) and SQL Database in Microsoft Fabric (preview). This platform integrates key Microsoft-based tools—including Power BI, Azure Data Factory, Azure Synapse, and Azure Machine Learning—into a single, cohesive platform. The goal? To simplify data management, analytics, and AI-driven insights, enabling businesses to unlock greater value from their data with a more streamlined and user-friendly experience.
Expanding its commitment to flexible and scalable cloud solutions, Microsoft introduced Azure Local, a cloud infrastructure designed for distributed environments. Powered by Azure Arc, this solution enables organizations to deploy and manage cloud-connected infrastructure at their physical locations while maintaining the freedom to use hardware from their preferred vendors.
Staying informed about the latest advancements is essential for making strategic decisions. As Microsoft continues to drive innovation in AI, analytics, and cloud infrastructure—along with changes in Enterprise Agreements—organizations must take a proactive approach to assessing their cloud strategies. In our next blog, we’ll explore key security updates from Microsoft Ignite and highlight the latest developments to keep on your radar. Stay tuned!
At Trace3, our FinOps team is dedicated to helping businesses optimize their cloud investments, ensuring they stay ahead of industry changes and maximize the value of their technology stack. If you have any questions or would like to explore how these updates may impact your organization, please reach out to FinOpsSupport@trace3.com we’re here to help you make the most of your cloud journey.
Jon Oates, Operations Manager for Trace3’s Cloud FinOps Consulting Team, is a tech industry veteran with expertise in Microsoft licensing and Azure Cloud. Known for his strategic insights and dedication, he drives innovation in cloud computing—always with a touch of whipped cream in his coffee.
Bri Cavanaugh joined the Cloud FinOps team in October 2022, bringing with her six-plus years of cloud licensing, managed service programming, customer service, and presales enablement experience. She specializes in partnering with sales teams and their clients to assist in understanding and advising on how to optimally approach Microsoft licensing solutions, including Azure subscription deployment and management, enterprise agreement consulting, and CoPilot adoption. She strives to arm clients with the knowledge to make confident decisions in the landscape of their licensing environments to meet their business needs in the most cost-effective way.