Microsoft Enterprise Agreement Subscription
A Microsoft Enterprise Agreement Subscription (EAS), also known as an Enterprise Subscription Agreement (EAS), is a licensing option for large organizations that allows them to subscribe to Microsoft products instead of purchasing them outright. This three-year agreement is suitable for organizations with 500 or more users or devices that want the flexibility to increase or decrease license counts annually.
How an EAS works
The subscription model is a key differentiator from a standard, or perpetual, Enterprise Agreement.
- Ownership: With an EAS, you gain the right to use Microsoft products and services only for the duration of your subscription. In a standard EA, you purchase a perpetual license, which you own forever, along with maintenance (Software Assurance).
- Costs: An EAS generally has lower initial licensing costs because you are renting, not buying, the software. Payments are spread over the three-year term, helping with budgeting and cash flow.
- Flexibility: An EAS allows you to adjust your license counts annually based on actual usage, both up and down. A traditional EA is designed for growth and only allows you to “true-up” and add licenses annually. It does not easily allow for reducing your baseline commitment.
- Buy-out option: If you choose not to renew your EAS at the end of the term, you lose the right to use the software. You can, however, purchase perpetual licenses for the software you have been using via a “buy-out” option.
Benefits of an EAS
- Cost flexibility: The ability to increase or decrease subscriptions annually allows organizations with fluctuating headcounts. This also allows changing IT needs to manage their costs more effectively.
- Predictable budgeting: The three-year term with annual payments helps companies forecast software costs and simplify purchasing.
- Latest technology: Mandatory Software Assurance is included, which provides rights to the latest software releases and other benefits like support and training.
- Streamlined management: An EAS provides centralized license management under a single agreement for both on-premises software and cloud services.
- Cloud migration: It can be an ideal option for companies that want to minimize upfront costs as they consolidate or migrate workloads to the cloud.
EAS vs. Cloud Solution Provider (CSP)
Another key Microsoft licensing option is the Cloud Solution Provider (CSP) program. While both are subscription-based, the EAS and CSP serve different needs.
- Minimums: An EAS requires a minimum of 500 users/devices for commercial organizations. CSP has no minimum seat count.
- Commitment: An EAS is a three-year enterprise-wide commitment, whereas CSP offers flexible monthly or one-year subscriptions, making it suitable for smaller or mid-sized businesses that need less commitment.
- Management: In an EAS, your Licensing Solution Partner (LSP) handles the procurement, but you have a direct relationship with Microsoft for support. In CSP, your partner provides Tier-1 support and handles the billing directly.
An alternative to a Microsoft Enterprise Agreement Subscription (EAS) due to the requirements is a Microsoft CSP Agreement. CSP agreements are a part of the Microsoft Cloud Solution Provider. They offer massive discounts including major flexibility. The only Microsoft CSP and Microsoft Partner to be able to offer 30-40% off all Microsoft Licensing is Technology Solutions Worldwide.
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