Microsoft’s decision to remove volume-based pricing tiers (Levels A-D) from November 2025 will significantly increase baseline pricing for online services. This article outlines how organisations can use price locking under an Enterprise Agreement (EA) to mitigate these increases, potentially saving up to 20% on future licensing costs.
If you aren’t yet aware of the announced pricing changes, read our article on the subject: Microsoft Kills Volume Discounts: What CIOs and Procurement Leaders Need to Know Before November 2025.
What Is Price Locking?
Price locking means placing a minimal order for a product (usually a quantity of one) under your EA. As a tactical response to the pricing changes announced this needs to be executed before 1 November 2025 to secure current pricing and licensing terms for the remainder of your agreement.
This tactic allows organisations to shield themselves from Microsoft’s upcoming pricing changes without committing to full deployment or significant up-front costs.
Key Tactical Considerations
- What to Lock
- Review your technology roadmap before placing any orders.
- Focus on products/services aligned with your strategic plans.
- Avoid ordering broadly across Microsoft’s portfolio—this can inflate costs and complicate tenant, license, and future renewal management efforts.
- Reservations vs Orders
- Reservations only provision access; they do not trigger a price lock.
- To lock pricing, you must raise an actual order via your Licensing Solutions Partner (LSP).
- Ensure your LSP submits the order to Microsoft before the end of October 2025 to lock-in pricing that still benefits from the volume discount (Level A-D) that you are eligible for.
- End-of-Month Processing Cut-Offs
- Microsoft guarantees processing for orders received before its monthly cut-off date.
- These dates vary based on weekends and the volume of deals they are expecting to receive (e.g. quarter-end).
- Smaller orders may be deprioritised—submit early to avoid missing out.
- Confirm cut-off dates with your LSP and plan ahead.
- Tenant-Wide Services
- Some services, like Entra ID Protection, apply tenant-wide even if licensed per user.
- Activating tenant-wide features may trigger licensing obligations for all users.
- Ensure provisioning teams understand the implications before activating any features (both in general, but specifically here re: any price-locked items).
- Online Service Reductions
- Many online services can be reduced to zero at your next agreement anniversary.
- This allows you to retain the price lock without ongoing commercial commitment.
- Not all services are eligible, and some agreements may be varied to restrict reductions. Review your contract carefully to ensure properly informed decision making.
Risks and Nuances
- A price locks alone doesn’t create risk, but activating certain features can.
- Always consult your specific licensing terms and seek independent advice before placing orders.
- Don’t rely on Microsoft-funded partners or analysts, true independence is essential to protect your interests.
Why Keystone?
Keystone Negotiation is:
- 100% independent from Microsoft
- A global leader in Microsoft licensing advisory
- Specialised in helping clients navigate complex transitions and secure optimal outcomes
Don’t wait until renewal. Contact Keystone for a free consultation and discover how to protect your budget and establish a fully informed Microsoft licensing strategy.