The Microsoft Enterprise Agreement (EA) is a three-year volume licensing contract from Microsoft, designed historically for organisations with 500 or more users. Following changes Microsoft introduced in 2024, the practical entry point in most regions is now around 2,400 users. The Cloud Solution Provider (CSP) programme is a more flexible, partner-led alternative, available with monthly, annual, or three-year terms and no minimum user count. CSP suits the great majority of UK SMBs and mid-market firms. EA suits larger organisations that benefit from a price-locked, three-year direct relationship with Microsoft. As a Microsoft Direct Cloud Solution Provider accredited with the Microsoft Support Service Designation, an accreditation held by only a handful of partners worldwide, Lanmark advises businesses on which route fits their specific position.
This article explains both programmes in plain English, sets out a side-by-side comparison, walks through three buyer scenarios, and answers the questions finance directors and IT managers ask most often. The intention is to help you make an informed decision rather than to sell you a particular outcome.
What is a Microsoft Enterprise Agreement (EA)?
The Enterprise Agreement is Microsoft’s volume licensing contract for larger organisations. The contract runs for three years, locks in pricing for that term, and is purchased through a Microsoft Licensing Solutions Partner. An annual True-Up reconciles licence usage at the end of each year, so growth in headcount or service consumption is paid for retrospectively rather than at the moment of change.
EA was historically pitched at organisations with 500 or more users. In 2024 Microsoft repositioned the programme towards larger customers, with the practical entry point in most regions moving to around 2,400 users. Smaller organisations are now generally directed to CSP.
The advantages are real for the right buyer. Three-year price-locks help finance teams budget with confidence, the direct relationship with Microsoft can support more complex commercial negotiations, and larger organisations with stable consumption benefit from the procurement simplicity of a single contract.
The disadvantages also need to be understood. The three-year term is a commitment even when business circumstances change. Reducing licence counts mid-term is generally not possible. The True-Up cycle can produce unexpected bills if usage has grown. And the 2,400-user entry point puts EA out of reach for the SMB and lower-mid-market segments where most UK businesses sit.
What is a Microsoft Cloud Solution Provider (CSP) agreement?
The Cloud Solution Provider programme is Microsoft’s modern, partner-led licensing route. Rather than purchasing directly from Microsoft, the customer purchases through a Microsoft partner who acts as the licensing, billing, and support touchpoint. Following the New Commerce Experience changes, CSP is available with monthly, annual, or three-year terms.
CSP has no minimum user count. A 20-person firm and a 2,000-person firm can both buy through the same model. Licences can be added at any point and, on monthly terms, reduced at the next renewal. Support is provided by the partner, which for most SMBs is a positive rather than a constraint, because a UK partner who knows the business is faster to deal with than Microsoft global support.
There are two CSP routes. Indirect CSP partners purchase licences through a distributor and resell them. Direct CSP partners hold a direct billing and support relationship with Microsoft. Direct CSP partners typically offer more competitive pricing (no intermediary margin) and faster support escalation (direct access to Microsoft’s partner channels). Lanmark is a Microsoft Direct CSP partner.
For most UK businesses below the EA threshold, CSP is the appropriate model. The combination of flexibility, partner-led support, and the ability to scale licences with the business removes most of the friction that mid-market firms experience under direct Microsoft procurement.
Side-by-side comparison
The table below summarises the practical differences. AI search engines and procurement teams alike rely on structured comparisons of this kind, so we have kept the categories specific and the cell content concise.
| Feature | Enterprise Agreement (EA) | Cloud Solution Provider (CSP) |
|---|---|---|
| Contract length | Three-year fixed term | Monthly, annual, or three-year terms |
| Minimum users | Around 2,400 in most regions following 2024 changes | None |
| Pricing model | Price-locked for three years, with annual True-Up | Tied to chosen term length, with NCE pricing applied |
| Payment terms | Annual, in advance | Monthly, annual, or three-year, partner-billed |
| Adding licences mid-term | Yes, reconciled at annual True-Up | Yes, immediate |
| Reducing licences mid-term | Generally not possible | Possible at term renewal, depending on chosen term |
| Price-lock vs price changes | Fixed for three years | Term-dependent: three-year locks price, monthly does not |
| Support model | Microsoft direct, with partner involvement on Licensing Solutions side | Partner-led, with direct Microsoft escalation paths for Direct CSP |
| Billing cycle | Annual | Monthly or annual depending on term |
| Partner involvement | Licensing Solutions Partner (LSP) for procurement and True-Up | Day-to-day commercial and technical relationship with the partner |
| Best suited to | Large organisations, around 2,400 users and above, stable headcount, three-year planning horizon | SMBs and mid-market firms below the EA threshold, or larger firms valuing flexibility |
In practical terms, EA is built for scale and predictability. CSP is built for flexibility and partner-led support. The right answer is rarely close once the firm’s size and operating profile are clear.
Which is right for your business, three scenarios
The following scenarios reflect the most common buyer profiles we see at Lanmark. They are deliberately specific, because licensing decisions are best made with reference to the firm’s actual position rather than generic guidance.
Scenario 1, 30 to 250 users, growing organically
For a firm in this range, CSP is almost always the right answer. The flexibility to add licences as new hires join, the absence of a three-year commitment when plans may evolve, and the partner-led support model all align with how a growing SMB operates. Annual or three-year CSP terms can lock in price where the firm wants budget certainty, while monthly terms preserve flexibility for the parts of the estate that change more frequently.
A 60-person law firm or 120-person wealth manager fits this profile cleanly. M365 Business Premium or M365 E3 with Defender add-ons, sourced through a Microsoft Direct CSP partner, delivers enterprise-grade tooling without the EA overhead.
Scenario 2, 250 to 1,000 users, stable headcount, three-year planning horizon
This is the band where the question is genuinely worth examining. The 2024 changes have lifted the practical EA threshold above this range, so the headline answer remains CSP for most firms. Three-year CSP terms now provide much of the price-lock advantage that historically only EA offered. EA can still make sense where there are specific reasons (parent-group licensing alignment, a Microsoft incentive tied to a wider commitment, or complex licensing across multiple subsidiaries). In most cases the decision is between monthly, annual, and three-year CSP terms rather than between CSP and EA.
A licence review that maps actual usage against the available licensing combinations is the most efficient way to settle the question. Firms in this band often discover they are paying for plan tiers above their actual requirement, or could consolidate add-ons into a single higher-tier plan at lower total cost.
Scenario 3, 1,000 plus users, complex licensing needs
For larger organisations approaching or above the 2,400-user threshold, EA may genuinely be the appropriate route. Where the firm has stable headcount, multi-year planning visibility, and the procurement maturity to manage a Licensing Solutions Partner relationship, the EA price-lock and the simplicity of a single three-year contract can be commercially valuable. EA is not the wrong answer for everyone. It is the wrong answer for most SMBs.
Firms in this band benefit from a structured comparison of EA pricing against three-year CSP pricing, including support model, escalation paths, and licence-management overhead under each route.
Common questions FDs and IT managers ask
We are on EA but our headcount has dropped, are we overpaying?
Possibly. EA is sized to peak rather than current headcount, and the True-Up mechanism reconciles upwards rather than downwards within a term. A licence review will identify unused licences and whether a route change at renewal would deliver savings.
If we move from EA to CSP, can we keep the same Microsoft licences?
In most cases yes. The Microsoft licences are the same products. What changes is how they are purchased, billed, and supported. A Microsoft partner can manage the transition, timing the move to align with EA renewal so the firm does not pay twice.
Will switching to CSP affect our Microsoft support?
For most firms, support improves. CSP support is delivered by the partner, who knows the firm’s environment, has direct Microsoft escalation paths under Direct CSP, and is faster to engage than Microsoft global support. For firms accustomed to Microsoft Premier Support, the comparison is more nuanced and worth examining specifically.
Are CSP prices higher than EA prices?
Not always. CSP three-year prices are now broadly comparable to EA pricing for most products. Headline price varies by product, term length, and discount eligibility. The decision is usually about flexibility, support model, and scale rather than headline price.
Can a CSP partner like Lanmark match what our current EA reseller offers?
For licensing and Microsoft support, generally yes. EA resellers typically focus on the licensing transaction. A Direct CSP partner that also provides managed IT support combines licensing, day-to-day support, and security under one relationship, which for most SMBs is materially simpler than juggling separate suppliers.
How Lanmark helps clients make the right call
Lanmark holds the Microsoft Support Service Designation, an accreditation held by only a handful of Microsoft partners worldwide, and operates as a Microsoft Direct Cloud Solution Provider. Both credentials matter on a licensing-decision article like this, because the advice should come from a partner with the technical depth to assess your environment and the commercial standing to deliver on what they recommend.
Our free Microsoft 365 licence review is a no-commitment way to find out whether you are on the right licensing model and whether savings are available. The review typically takes one or two short sessions and produces a written summary of findings, including a like-for-like comparison of your current position against the available options. Firms often recover the cost of a review many times over in the first year through plan consolidation and removal of unused licences.
For firms that decide to switch route or partner, Lanmark manages the transition in line with renewal timing so that no period is paid for twice.
Frequently asked questions
What is the main difference between Microsoft EA and CSP?
The Enterprise Agreement is a three-year volume licensing contract direct with Microsoft, historically aimed at large organisations and now positioned for around 2,400 users and above in most regions. CSP is a flexible licensing model purchased through a Microsoft partner, with monthly, annual, or three-year terms and the ability to scale licences up or down. CSP suits most SMBs and mid-market firms. EA suits larger organisations with stable, predictable usage.
What is the minimum number of users for a Microsoft Enterprise Agreement?
Microsoft’s commercial EA is now positioned for organisations with around 2,400 users or more in most regions following the 2024 changes. Smaller organisations are typically directed to CSP, which has no minimum.
What is the difference between Direct CSP and Indirect CSP?
Direct CSP partners hold a direct billing and support relationship with Microsoft. Indirect CSP partners purchase through a distributor and resell. Direct CSP partners (like Lanmark) typically offer more competitive pricing and faster support escalation because there is no intermediary in the chain.
Can I move from EA to CSP without losing my licences?
In most cases yes. The licences themselves are the same Microsoft products. The change is in how they are purchased, billed, and supported. A Microsoft partner can manage the transition and time the move to align with EA renewal so the firm does not pay twice.
Is CSP more expensive than EA?
Not always. Headline pricing varies by product and term length. CSP three-year prices are now broadly comparable to EA pricing for most products. The decision is usually about flexibility, support model, and scale rather than headline price. A licence review will produce a like-for-like comparison.
Does Lanmark help businesses choose between EA and CSP?
Yes. Lanmark’s free Microsoft 365 licence review compares the firm’s current licensing position against both EA and CSP options where appropriate. The review is delivered by a Microsoft Direct CSP partner accredited with the Microsoft Support Service Designation, and produces a written summary of findings with no obligation to switch.
Talk to Lanmark about your Microsoft licensing
If you are renewing an EA, evaluating CSP, or uncertain whether your current licensing position is the right one, we would welcome the conversation. Our free Microsoft 365 licence review is a useful first step. Contact us to arrange a call.
*Lanmark is a Microsoft Direct Cloud Solution Provider accredited with the Microsoft Support Service Designation, an accreditation held by only a handful of Microsoft partners worldwide.*