Licensing & Buying Guides
CSP vs Volume Licensing: Which Microsoft Licensing Model Fits Your Business?
CSP (Cloud Solution Provider) is Microsoft’s usage-based, partner-managed licensing model — no minimum seat count, monthly or annual billing, and a single partner handling both sales and support. Traditional Volume Licensing (Enterprise Agreement) is deployment-based with tiered discounts and annual true-ups, but Microsoft stopped accepting new EA enrollments in October 2024 — it’s now renewal-only for existing customers. For most businesses evaluating licensing today, the real choice is between CSP (subscription, usage-based, flexible) and MCA-E (a newer direct-billing path for $500K+ spend), with perpetual volume licensing (MAK keys) remaining a legitimate third option for businesses that want to own software outright rather than subscribe.
CSP vs Volume Licensing vs Perpetual MAK: Full Comparison
| Factor | CSP (New Commerce Experience) | Volume Licensing (EA) | Perpetual MAK (resold) |
|---|---|---|---|
| Available to new customers? | Yes | No — renewal only since Oct 2024 | Yes, through resellers |
| Contract term | Monthly, annual, or 3-year | 3-year commitment | None — one-time purchase |
| Minimum seats | None | ~500+ users/devices typically | Varies by reseller (often 25–5000) |
| Billing | Monthly or annual, via partner | Annual invoices, true-up yearly | One-time payment |
| Software Assurance benefits | Not included | Included | Not included |
| Ownership model | Subscription — access stops if you stop paying | Subscription — same | Own it permanently |
| Support | Single CSP partner, front-line | LSP + Microsoft, often split | Reseller support for activation |
| Best fit | SMB to mid-market, under ~$1M annual spend | Existing EA customers, $1M–$25M+ spend | Cost-conscious buyers who don’t need the latest cloud features |
What Changed: EA Enrollment Closed in October 2024
Microsoft stopped accepting new Enterprise Agreement (EA) enrollments in October 2024 — existing EA customers can still renew, but no organization can start a fresh EA today. MPSA (Microsoft Products and Services Agreement), another traditional Volume Licensing path, is similarly closed to new business and restricted to legacy renewals. For any business evaluating Microsoft licensing today without an existing EA or MPSA relationship, the practical choice is between CSP and the newer MCA-E (Microsoft Customer Agreement for Enterprise) — traditional Volume Licensing, in the form most IT buyers know it, is no longer a door open to new customers.
What Is CSP (Cloud Solution Provider)?
CSP is Microsoft’s partner-led licensing and support model, sold through the New Commerce Experience (NCE). Rather than negotiating directly with Microsoft, you work with a single CSP partner who handles provisioning, billing, and support in one relationship. Key characteristics:
- No minimum or maximum seat count — CSP is designed to scale from a single license to thousands
- Usage-based licensing — you subscribe to what you actually need rather than licensing for deployment coverage regardless of active use
- Flexible terms — monthly, annual, or 3-year commitments, with monthly typically priced around 20% higher than annual for the flexibility
- Consolidated billing — one invoice from your CSP partner covering all services, rather than potentially multiple invoices across different licensing agreements
- Limited mid-term changes — on an annual or 3-year term, there’s typically a short window (around 7 days) to change your seat count after purchase; after that, seat reductions generally wait until renewal, though additions are usually possible anytime
What Is Traditional Volume Licensing?
Volume Licensing — historically Enterprise Agreement, MPSA, and Open/Open Value programs — was built around deployment coverage and tiered volume discounts, with organizations committing to a 3-year term and larger minimum scale:
- Tiered pricing: Discount levels (commonly referred to as Level A/B/C/D) based on total organizational purchase volume
- Software Assurance: Bundled benefits including License Mobility, home use rights for employees, and deployment planning services — a meaningful value-add CSP doesn’t replicate the same way
- Annual true-up: Rather than adjusting license counts continuously, EA customers typically reconcile actual usage against licensed counts once a year
- Now closed to new business: As of October 2024, this is renewal-only — existing EA customers keep their agreements, but no new EA enrollments are accepted
Where MCA-E Fits In
MCA-E (Microsoft Customer Agreement for Enterprise) is the newer path Microsoft is steering larger customers toward as EA closes to new business. It targets organizations with roughly $500K+ in annual spend that want a direct billing relationship with Microsoft — without the traditional EA structure — while still getting volume-discount pricing comparable to what EA offered, and better native support for modern cloud/subscription services than the legacy EA framework was built around. For businesses in the $1M–$25M+ annual spend range, MCA-E or an existing EA renewal are the realistic options; below that, CSP is generally the better fit.
The Third Option: Perpetual Volume (MAK) Licensing
Both CSP and Volume Licensing/MCA-E are subscription models — access depends on continued payment. For businesses that specifically want to own software rather than rent it, Multiple Activation Key (MAK) volume licenses purchased through the secondary/reseller market remain a legitimate third path. MAK keys activate a fixed pool of installations (commonly sold in blocks of 50, 100, 150, 250, or more) with no recurring subscription fee — you pay once and the license doesn’t expire or require renewal.
This isn’t a fit for every scenario — MAK keys don’t include ongoing access to new cloud services or Software Assurance-style benefits, and they suit software that doesn’t inherently require a subscription (Windows, Office Professional Plus, Windows Server) rather than genuinely cloud-native services. But for a business licensing 50, 100, or 500 seats of Windows 11 Pro or Office Professional Plus and wanting to avoid an indefinite recurring cost, it’s worth comparing against a CSP subscription’s total cost over 3+ years. See our MAK key explainer and MAK vs KMS comparison for the mechanics.
Support and Relationship Management
CSP’s single-partner model means one point of contact handles licensing, billing, and technical support — genuinely simpler for smaller IT teams without dedicated licensing staff. Traditional Volume Licensing often involves a Licensing Solution Provider (LSP) for the commercial relationship and separate Microsoft support channels for technical issues, which can mean more parties to coordinate when something goes wrong, though larger organizations with dedicated procurement and IT staff are typically better equipped to manage that complexity in exchange for the deeper negotiation leverage Volume Licensing offers.
Pricing Flexibility and Seat Changes
This is where the two models diverge most in daily practice. CSP’s monthly term lets you add or remove seats essentially in real time, at a roughly 20% pricing premium over annual commitment. CSP’s annual/3-year terms lock in seat count after a short initial change window, similar in spirit to EA’s annual true-up but on a tighter cycle. Volume Licensing/EA’s tiered discount structure rewards larger, more predictable deployments with better per-seat pricing than CSP typically offers at comparable volume — but that discount comes with the 3-year commitment and higher minimum scale that no longer accepts new entrants anyway.
Buyer’s Guide: Which Model Fits Your Business?
Choose CSP if:
- You’re under roughly $1M in annual Microsoft spend
- You want a single partner relationship for billing and support
- Your headcount fluctuates and you need to add or remove licenses without waiting for an annual cycle
- You don’t have an existing EA or MPSA relationship to renew
Choose MCA-E or renew an existing EA if:
- Your annual Microsoft spend is in the $1M–$25M+ range
- You have dedicated procurement/IT staff who can manage a direct Microsoft relationship
- You need Software Assurance benefits like License Mobility across a large deployment
Consider perpetual MAK licensing if:
- You’re licensing on-premises software (Windows, Office Pro Plus, Windows Server) rather than genuinely cloud-native services
- You’d rather make a one-time capital purchase than an indefinite recurring subscription
- Your organization’s software needs are stable enough that you don’t need continuous access to the newest cloud-only features
Real-world example: A 40-person accounting firm with predictable headcount and no need for the newest Microsoft 365 cloud features compares a CSP subscription for Office against a one-time MAK license purchase for Office Professional Plus 2024 covering 50 activations. Over a 3-year horizon, the one-time MAK purchase often comes out meaningfully cheaper than the equivalent CSP subscription — the trade-off being no automatic access to future Office versions once purchased.
Why This Matters
Microsoft’s licensing landscape shifted meaningfully with EA’s closure to new business in October 2024 — a business evaluating licensing today is working with a genuinely different set of options than one that shopped even two years ago. Defaulting to whatever a Microsoft rep or the first partner you talk to recommends, without understanding that CSP, MCA-E, and perpetual volume licensing solve different problems, is how businesses end up locked into recurring costs for software they’d have been better off owning outright — or vice versa, missing cloud features they actually needed by buying perpetual licenses out of habit.
Frequently Asked Questions
Can I still get a new Microsoft Enterprise Agreement (EA)?
No. Microsoft stopped accepting new EA enrollments in October 2024. Existing EA customers can renew, but new customers must use CSP or MCA-E instead.
What’s the main difference between CSP and Volume Licensing?
CSP is usage-based, partner-managed, with no minimum seats and monthly/annual billing flexibility. Volume Licensing (EA) is deployment-based with tiered volume discounts, a 3-year commitment, and larger minimum scale — and is now closed to new customers.
Is CSP cheaper than Volume Licensing?
It depends on scale. At high volume, traditional Volume Licensing’s tiered discounts often beat CSP’s list-based pricing — but that comparison is now moot for new customers, since EA no longer accepts new enrollments. Among currently available options, CSP is generally more cost-competitive for smaller organizations, while MCA-E competes with legacy EA pricing at larger scale.
What is MCA-E and how is it different from CSP?
MCA-E (Microsoft Customer Agreement for Enterprise) is a direct-billing relationship with Microsoft aimed at organizations with $500K+ annual spend, offering volume-discount pricing similar to EA without the traditional EA structure — larger and more direct than the partner-led CSP model.
Does CSP include Software Assurance benefits?
No. Software Assurance benefits like License Mobility and home use rights are specific to traditional Volume Licensing agreements and aren’t part of the CSP model.
Can I still buy perpetual (non-subscription) Microsoft licenses for my business?
Yes, through the secondary/reseller market via MAK (Multiple Activation Key) volume licenses, which activate a fixed pool of installations with no recurring fee. This suits on-premises software like Windows or Office Professional Plus rather than cloud-native services.
How many seats do I need for CSP vs Volume Licensing?
CSP has no minimum or maximum seat requirement. Traditional Volume Licensing (EA) has historically targeted larger deployments, commonly in the hundreds of users or devices, though this is now moot for new customers since EA is closed to new enrollments.
Can I switch from an old Volume Licensing agreement to CSP?
Generally yes, many organizations transition from an expiring EA or MPSA agreement to CSP or MCA-E depending on their scale, though the right migration path depends on your specific licensed products and deployment — consulting your Microsoft partner is recommended before switching.
Is CSP good for a small business with fewer than 25 employees?
Yes, CSP has no minimum seat count, making it accessible to very small businesses in a way traditional Volume Licensing never was.
What happens to my licenses if I stop paying for a CSP subscription?
Like any subscription model, access to the licensed software and services stops when payment stops. This is a core difference from perpetual licensing, where you retain usage rights indefinitely after the one-time purchase.
Conclusion: CSP vs Volume Licensing for Your Business
The Volume Licensing landscape most IT buyers grew up with — Enterprise Agreement, tiered discounts, a 3-year commitment — is now closed to new customers, replaced by CSP for smaller organizations and MCA-E for larger ones. Both remain subscription models. For businesses that specifically want to own their software rather than subscribe to it indefinitely, perpetual MAK volume licensing through the reseller market remains a legitimate, often overlooked third option — worth comparing against a multi-year CSP subscription cost before you commit either way.
Explore Perpetual Volume Licensing
If a one-time purchase makes more sense for your organization than an ongoing CSP subscription, SoftLicenseDeals sells genuine MAK volume license keys across Windows, Office, and Windows Server.
- Windows 11 Pro MAK — 50 PC Activations
- Office Professional Plus 2024 MAK — 100 Users
- Windows Server 2025 MAK — 50 PC Activations
Not sure if MAK is the right fit? Read our MAK key explainer and Retail vs OEM vs MAK guide.
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