Microsoft licensing · Module 2

Which Microsoft licensing agreements exist—
and how do they differ?

Microsoft products can be purchased in different ways: directly from Microsoft or through a partner. Depending on the model, the agreement, point of contact, invoice, term, and obligations can differ.

Updated: 15 August 2026Reading time: about 8 minutesAgreements & procurement

In brief

The agreement sets the rules. The purchasing route explains how you buy.

The important questions are who the contracting party is, who issues invoices, and how flexibly the agreement can be adjusted.

01Directly from Microsoft or through a partner?
02Who is the contracting party and who invoices?
03How long does the agreement last?
04Which rights and obligations apply?

Explained simply · The essential terms

The agreement and purchasing route are different

Microsoft has different agreements and different ways to purchase licences. These two things should not be confused.

Enterprise Agreement (EA)

An agreement model typically used by larger organisations.

Microsoft Customer Agreement (MCA)

A Microsoft customer agreement used for particular direct and partner-assisted purchases.

Cloud Solution Provider (CSP)

A way to buy and receive support through a Microsoft partner—not a separate customer agreement.

A practical example: An organisation purchases Microsoft 365 through a partner. The partner can provide advice and billing while the customer accepts the Microsoft Customer Agreement.

Start by separating the terms

An agreement defines the rights.
A purchasing channel defines how you buy and receive support.

This distinction prevents a common mistake: CSP is not a standalone customer agreement like an Enterprise Agreement. It is a sales and service model in which the customer accepts the Microsoft Customer Agreement and purchases through a partner.

01 · Three layers

Agreement, licensing programme, and purchasing channel are not the same

The terms are often mixed in everyday discussion. A defensible assessment separates them.

AGREEMENT

Legal foundation

The agreement contains the general terms between the customer and Microsoft. Examples include the Microsoft Customer Agreement and the contractual documents of an Enterprise Agreement.

PROGRAMME

Commercial model

The licensing programme defines audience, minimum size, term, commitments, pricing logic, and administration processes.

CHANNEL

Purchase and service

The channel describes whether Microsoft directly or a partner supports quotation, ordering, invoicing, provisioning, and support.

The most important distinction:

CSP stands for Cloud Solution Provider and describes the partner channel. In the CSP model, the customer accepts the Microsoft Customer Agreement; the CSP partner typically invoices the customer and provides the agreed services.

02 · Direct or through a partner

Contracting party, seller, and invoice issuer can be different

Buying through a partner does not automatically mean that the partner is also the contracting party for every Microsoft usage right.

DIRECT MODEL

Buy directly from Microsoft

Depending on offer and eligibility, the customer works with a Microsoft sales team or buys online. Microsoft provides the proposal or invoice and manages the billing relationship.

Customer

Microsoft

Direct commercial relationship
Invoice from Microsoft
Example: MCA through a Microsoft seller or Azure.com

PARTNER MODEL

Buy through a partner

An LSP, reseller, or CSP partner supports procurement and operations. The partner's role depends on the licensing programme.

Customer

Partner

Microsoft

Partner may advise and invoice
CSP partner provisions and supports
EA, MPSA, and Open Value also use authorised partner routes

Check both relationships

In practice, review both the Microsoft agreement documents and the partner proposal, invoice, service description, and—where relevant—the partner relationship.

03 · Main models

Five routes for different needs

Organisation size is not the only deciding factor. Standardisation, flexibility, ownership model, and administrative effort also matter.

EA / EAS

Enterprise Agreement

Large organisationsTypically 3 years

Designed for broad, often organisation-wide standardisation. Software Assurance is included; quantity changes are accounted for through processes including the annual true-up. Under EAS, usage rights are subscribed rather than owned perpetually.

MCA

Microsoft Customer Agreement

Digital direct procurementNon-expiring framework

A modern digital agreement with dynamically updated terms and a billing structure. It can be signed through Microsoft sales or, in supported scenarios, online; commercial terms sit at proposal and product level.

MCA + CSP

Cloud Solution Provider

Partner-led procurementMCA plus individual product terms

The customer accepts the MCA and buys through a CSP partner. The partner typically provides the quote, invoice, provisioning, and support. CSP is the purchasing channel—not the customer agreement name.

MPSA

Products and Services Agreement

Typically 250+ users/devicesNon-expiring framework

For transactional purchases without an organisation-wide commitment. Purchasing Accounts structure entities and procurement. Software Assurance is optional.

OV / OVS

Open Value

5+ desktop PCs; initial order of at least 5 licencesTypically 3 years

For small and midsize organisations. Open Value combines perpetual licences with Software Assurance; Open Value Subscription grants usage rights only for the agreement term.

04 · Direct comparison

Agreement logic at a glance

Thresholds are Microsoft reference points. Industry, country, agreement history, and specific eligibility can change the available option.

Model	Typical audience	Procurement	Term	Commitment	Software Assurance
EA / EAS	Commercial usually 500+; government usually 250+	Microsoft agreement with LSP support	3 years	Broad / organisation-wide	Included
Direct MCA	Eligible organisations; market and offer dependent	Microsoft seller or supported online purchase	Non-expiring framework; product terms separate	Offer dependent	Offer dependent
MCA through CSP	Organisations of different sizes	CSP partner	Non-expiring MCA; product terms separate	Product- and term-based	Not included in the standard CSP model
MPSA	Typically 250+	Licensing Solution Partner	Non-expiring	No organisation-wide commitment	Optional
Open Value / OVS	Initial order: at least 5 licences	Authorised reseller	Typically 3 years	Transactional or organisation-wide, depending on option	Included

Important: A non-expiring framework agreement does not mean that every subscription ordered under it runs indefinitely. Product term, billing plan, and cancellation rules are determined separately.

05 · Commitment & change

EA, EAS, and flexible models treat growth differently

A crucial question is when new use must be ordered and paid for.

True-up

Additional qualifying use is tracked during the term and reported and paid for through the annual process defined by the agreement.

EAS

Subscription

The organisation does not own perpetual rights. Quantities can be adjusted at defined points subject to the agreement rules.

CSP

Subscription lifecycle

Quantity, term, billing plan, renewal, and cancellation window are managed per subscription or offer.

TRANSACTIONAL

Buy when needed

MPSA and non-organisation-wide Open Value options allow procurement without the same broad standardisation commitment as an EA.

06 · Special audiences

Not every model targets conventional enterprise customers

Education, public sector, and hosting providers have additional or different programmes.

EES

Enrollment for Education Solutions

For larger education institutions, with an annual count of eligible users and dedicated education and Student Use Benefits.

OVS-ES

Open Value Subscription for Education Solutions

A subscription model for smaller education institutions that want organisation-wide licensing.

SELECT PLUS

Public sector

New commercial Select Plus agreements are no longer offered. The model remains available to eligible government and academic organisations.

SPLA

Hosting & services

For service providers that use Microsoft products to deliver hosted services to end customers. Monthly reporting and separate service-provider rules apply.

Eligibility cannot be assumed

Government, education, or nonprofit terms require confirmed eligibility. A discounted price alone does not prove that an organisation may use the corresponding offer.

07 · Selection

Seven questions before choosing an agreement

The right agreement follows the organisation's procurement and operating model—not a single discount.

01How many users and devices are in the licensable scope?
02Should the organisation standardise broadly or buy only when needed?
03Are perpetual rights or time-limited subscriptions required?
04What role should a partner play in advice, billing, provisioning, and support?
05How frequently do user numbers, cloud consumption, and product demand change?
06Are Software Assurance, upgrade rights, or specific mobility rights required?
07Do government, education, nonprofit, or hosting requirements apply?

Key principle

The agreement sets the rules. The purchasing channel shapes the relationship.

A sound decision therefore compares not only prices, but also the contracting party, invoice, support, term, quantity processes, commitments, and required usage rights.

Primary and official sources

Current, verified, and traceable.

This explanation is based on official Microsoft information available on 15 August 2026. Availability, thresholds, and terms can vary by country, industry, eligibility, product, and offer.

Note: This article provides clear professional orientation, not legal or procurement advice. The specific agreement documents, orders, Product Terms, and partner proposals remain authoritative.