Leveraging CSP and MCA in EA Negotiations
Introduction: Why Alternatives Strengthen Negotiations
Microsoft’s first offer is rarely its best, and experienced CIOs and procurement managers are well aware of this. One way to negotiate a better deal is to introduce alternative licensing channels, such as the Cloud Solution Provider (CSP) program or the Microsoft Customer Agreement (MCA).
Microsoft expects buyers to compare options, and using CSP as leverage in EA negotiations sends a clear message: you have viable paths besides the traditional Enterprise Agreement (EA). Read our overview, Microsoft EA vs Alternatives (CSP, MCA, etc.): Which Path Is Right for You?.
By seriously evaluating these alternatives, you demonstrate to Microsoft that you’re prepared to walk away if the deal isn’t right.
Often, this healthy skepticism forces Microsoft’s team to rethink their position and come back with a more competitive offer, since they know you have real options on the table.
1. Know Your Options: CSP and MCA as Baselines
Before you sit down at the negotiation table, get familiar with CSP and MCA pricing and terms. These programs offer transparent baseline costs for Microsoft’s services, eliminating the need for a long-term contract. CSP pricing is public and predictable – you can easily find per-user or per-service rates via Microsoft’s site or a reseller.
Likewise, an MCA offers pay-as-you-go flexibility with no volume commitments or multi-year lock-in. Neither option comes with the kind of built-in volume discounts an EA might include, but that’s the point: they reveal what you’d pay at standard rates if you decided to forgo the EA.
Armed with these baselines, you can challenge any EA proposal that doesn’t beat them by a wide margin. A mere 10% difference in price, for instance, hardly justifies a rigid three-year contract.
Microsoft will feel compelled to improve its offer once it realizes you’re actively comparing it to CSP/MCA benchmarks.
- Use CSP’s list prices as a benchmark: Look up current CSP rates for the licenses and services you use. If the EA isn’t substantially cheaper than CSP’s pay-as-you-go pricing, point it out and question the value of a long-term commitment.
- Leverage MCA’s standard rates: Understand what your spend would be under a Microsoft Customer Agreement’s standard pricing. Ask Microsoft why you should commit to an EA if its pricing isn’t dramatically better than a no-commitment deal.
- Call out weak discounts: Highlight if Microsoft’s EA offer barely undercuts the CSP/MCA costs. Making it clear that “we’re only seeing a small savings versus CSP” signals the EA isn’t good enough and pushes Microsoft to sharpen its pencil.
2. Microsoft’s Preference: Why EA Still Matters to Them
Beneath Microsoft’s friendly sales pitch, they are determined to keep you on an Enterprise Agreement. EAs give Microsoft predictable revenue and lock you in for years.
Account reps often have quotas and incentives tied to EAs, which is why they’ll push it as the default. But when you present a credible plan to shift to CSP or MCA, you tap into Microsoft’s fear of losing that comfortable deal.
This stance isn’t about bluffing; it shows you will leave if the EA doesn’t deliver enough value. That realization can prompt Microsoft to “find” extra discounts or concessions to entice you to stay in the fold.
Come prepared with real reasons why CSP or MCA might suit your organization better.
By sharing these, you demonstrate that your leadership has thought it through (not just making empty threats):
- Variable workforce size: If your user count rises and falls, CSP’s month-to-month flexibility might serve you better than an EA’s fixed licensing, letting you scale down during slow periods without penalty.
- OpEx budgeting: If finance prefers monthly operational spend over big upfront commitments, the pay-as-you-go model in CSP/MCA is appealing – as it eliminates the need to pay for unused licenses – and any EA offer must compete with that flexibility.
- Cloud-first, minimal on-prem: If you don’t rely on on-premises software or Software Assurance benefits, an EA’s extras are less compelling, making CSP/MCA more attractive.
- Mid-sized enterprise: If you’re near the lower end of EA eligibility (hundreds of seats, not thousands), your EA volume discounts are modest. Standard pricing via CSP or MCA might be comparable, so an EA isn’t automatically a no-brainer.
By laying out these points, you’re effectively telling Microsoft, “We have solid business reasons to consider walking away.” That puts the onus on them to either counter those reasons with a better EA proposal or risk you actually taking your business elsewhere.
3. Negotiation Phrases That Apply Pressure
In negotiation meetings, how you phrase your position can be as important as the position itself.
Certain phrases signal that you’re serious about considering CSP or MCA. Here are a few examples that apply pressure while keeping the conversation professional:
Sample Negotiation Phrases:
“If we can’t secure at least X% savings, we may shift to CSP this year for more flexibility.”
“CSP’s flexibility is looking more attractive to us unless the EA pricing better reflects our actual usage.”
“Our leadership is prepared to sign a Microsoft Customer Agreement instead, unless this EA proves to be a significantly better value.”
Statements like these plant a seed of doubt in your Microsoft rep’s mind. They clearly show you’re not bluffing about having a Plan B. Deliver them calmly and matter-of-factly – you’re not issuing ultimatums, just pointing out feasible alternatives.
Be ready to back these words with data. Quoting a specific “X%” discount shows you’ve done the math, and talking about flexibility or usage shows you expect a realistic deal. Microsoft will get the hint.
Often their response will be to seek approval for better terms rather than risk you actually switching to the alternative.
4. Be Ready to Follow Through
Talking about alternatives only works if you’re prepared to follow through. Microsoft has seen customers threaten to leave and then stick with the EA in the end.
To avoid that fate, ensure your organization is genuinely ready to switch (even partially) if needed. True leverage comes from credibility – if they sniff out a hollow threat, they might call it, leaving you stuck with a mediocre deal or a scramble to implement Plan B.
How do you prove you’re serious? First, get leadership buy-in. Ensure your CIO, CFO, and other execs agree that moving to CSP or an MCA is a viable plan if the EA falls short.
They should understand the cost trade-offs and operational changes involved. If Microsoft sees your C-suite is on board, your stance carries much more weight.
Next, build an internal cost and transition model. Know exactly what switching to CSP or MCA would look like:
- Run the numbers: Calculate what you’d spend under CSP or an MCA for the same licenses. If losing EA discounts means a 20% higher cost on some items, decide if that’s acceptable and factor it in.
- Plan the operations: Figure out how you’d handle support, billing, and license management under CSP/MCA. Prepare your IT team for new portals or working with a reseller partner, so you won’t miss a beat if you need to pivot.
- Cover EA perks: If your EA provided perks (such as training days or support credits), plan how to replace or manage without them. Maybe a CSP partner can provide similar support, or you can allocate budget for training. Showing you have these bases covered proves you’ve thought through the switch.
When you’ve done this homework, you can confidently tell Microsoft you’re ready to make the change if necessary—and truly mean it. That conviction is hard for them to ignore.
Should you exit your EA? – When to Exit the EA: Is a Microsoft EA Right for You?
5. Hybrid Leverage: Partial CSP/MCA Moves
You don’t have to go all-or-nothing to gain leverage. A hybrid strategy can be very effective: move a subset of your Microsoft workload to CSP or MCA while keeping the rest on the EA. This approach puts real pressure on Microsoft because you’ve already started shifting away.
For example, migrating your Azure dev/test environment or non-critical Microsoft 365 users (such as seasonal contractors) to CSP will immediately reduce the scope of your EA.
A partial move also serves as proof of concept. It shows that you can operate outside the EA’s confines, which makes your threat to move more of your business far more credible. If you’ve already shifted 10% of your usage to CSP, Microsoft knows you could ramp that up to 50% if push comes to shove.
That thought will be on their minds during negotiations.
- Target easy wins: Identify low-risk areas (e.g., test environments or a small department) and move those to CSP or MCA first. You’ll gain experience with minimal disruption and show momentum toward using an alternative model.
- Show Microsoft your progress: Let your Microsoft rep know that you’ve already diversified. For example, mentioning “We moved our testing workloads to CSP for cost flexibility” makes it clear you’re not just posturing – you’re executing.
- Exploit Microsoft’s desire for consolidation: Remember, Microsoft prefers all your spending in one agreement. When they see you splitting off even a part of it, they have an incentive to offer sweeter terms to lure those workloads back under the EA.
Using a hybrid approach keeps your options open. You can evaluate CSP/MCA on a small scale while maintaining most of your environment on the EA for now. It’s a practical way to test the waters and signal to Microsoft that every piece of your account is in play.
5 Actionable Next Steps
It’s time to put these strategies into practice. As you prepare for your EA negotiation, take these concrete steps to strengthen your position:
- Benchmark CSP Pricing: Gather the current per-user or per-service rates for everything you use. Compare these public CSP prices to your EA quote. This shows where the EA truly saves you money and where it doesn’t – pinpointing exactly what to haggle over.
- Build a CSP/MCA Scenario: Model your costs and operations under CSP or MCA as if you didn’t renew the EA. Know this “Plan B” in detail – how much you’d pay, what benefits you’d lose, what might improve. A solid alternative plan provides confidence and credible data during negotiations.
- Align Leadership Support: Make sure your executive team supports the negotiation strategy, including the option to shift to CSP/MCA. If Microsoft realizes your CIO and CFO are ready to approve an EA alternative, they’ll know your stance isn’t a bluff.
- Test Microsoft’s Flexibility: In early conversations, mention that you’re exploring CSP or an MCA for some needs and watch the reaction. If your rep quickly tries to dissuade you or hints at better terms, you’ve found a pressure point. Leverage that insight when formal talks begin.
- Pilot a Hybrid Approach: Move a small workload to CSP or MCA now, before the end of the EA renewal. That pilot gives you firsthand experience and tangible evidence. You can then say, “We’ve already moved X% to CSP,” which will make Microsoft take your leverage seriously.
Read about our Microsoft EA Negotiation Service.
