Microsoft will remove programmatic volume discounts for its SaaS products, including Microsoft 365, from November 1, 2025. A new Gartner report states enterprise organisations can expect list price rises of up to 13.6%. The change impacts customers with Enterprise Agreements (EAs).

The increases vary by organisation size, with the largest enterprises bearing the heaviest burden. Level D clients with 15,000 or more users face 13.6% price rises, while Level C organisations with 6,000-14,999 users see 9.9% increases.

Medium-sized Level B clients using 2,400-5,999 licences will pay 6.38% more. Level A organisations with 500-2,399 users remain unaffected, as Microsoft already removed their volume discounts in October 2018.

The changes affect Enterprise Agreements globally, with Microsoft transitioning all SaaS products to a single estimated retail price structure.

"Enterprise organisations can expect most Microsoft SaaS list prices to rise by up to 13.6%," the Gartner report states. "Unified Enterprise support contract fees will also increase, as they are calculated based on total spending."

Some products remain exempt from the changes, including US government and worldwide education price lists, software products like Windows Server and SQL Server, and Azure infrastructure services.

Gartner identifies three strategies for organisations to mitigate costs: rightsizing licence quantities through user profiling, negotiating offsetting discounts with Microsoft, and pursuing early renewal commitments before November 1.

The report recommends negotiating aggressively for discretionary discounts to offset the removal of programmatic price levels. For example, a Level D client that previously had a 15% discount might now need to secure a 25% discount off the ERP to maintain its price point.

Microsoft account teams may offer one-time discounts to compensate for lost volume pricing. However, Gartner warns such additional discounts are unlikely to be repeated in future renewals.

The changes reflect Microsoft's broader strategy to provide single pricing for cloud products while potentially introducing product-specific pricing tiers in future.

For organisations with Microsoft Unified Enterprise support contracts, the price increases will compound, as support costs are calculated as a percentage of total Microsoft SaaS expenditure.

Gartner recommends preserving Enterprise Agreements despite reduced attractiveness, as they retain "From SA" price discounts for customers transitioning from on-premises software, annual licence flexibility, and superior contract terms compared to alternatives.

The research firm predicts over 60% of Microsoft's EA clients will pursue additional SaaS discounts during renewals through 2029 to compensate for lost volume pricing.