In 2025 there were multiple Microsoft price increases, and more are planned for 2026.

Removing EA Price Levels will result in a 14% price increase for government and large corporate. In addition to the 1 July 2026 3% increase on E3 and E5. More increases for on-prem licenses. Let's not forget the price increases from 2023 to 2025 depending on the country, were 5% (parts of Europe) to 20% (Japan). Removal of M365 From Software Assurance (FromSA) SKU's is 15% price increase. Add regional E3 price increases 7% to 11%. These price increases are additive.

Microsoft stopped blaming Fx currency conversions for price increases. They used that card from 2023 to 2024.

Price increases are now explained as either (a) price harmonization or (b) increased value.

Re: "harmonization". Let’s be honest: it’s marketing language for a price rise. If Microsoft decides to remove EA price levels as a stepping stone to the more restrictive MCA contract, that is a straight-up price increase. Call it what it really is. Telling an unhappy customer that "....price increases will bring harmony" is making it worse.

Let's talk about "value". Moving Defender for 365 Plan 1 from E5 to E3 and saying this increased value justifies E3 going up 3%... also rubbish. Why? Value = (Realized Benefits minus Cost). Realized benefits only happen after you use the functionality AND it has a positive impact.

Moving Defender for 365 Plan 1 from E5 to E3 has put additional functionality into E3, and it may become value, but by default it is not value. You may need to consolidate email filtering vendors including change management costs, and this needs to be put into an objective measurement of value. And it certainly isn't value if you stay with Proofpoint or MIMEcast.

Using "value" in a sales proposal is designed to make price increases sound ok.

Same applies to explaining ramped discounts in an EA as "time to value". If you're going to propose ramped pricing as being aligned to an increase in value realization, that only has credibility if the projected value gain (over time) is measured accurately in monetary terms and compared to the price increase (over time).

Reach out if you would like help to break through Microsoft licensing complexity and to successfully negotiate your Microsoft EA renewal.