When it comes to Microsoft licensing, most organizations are choosing between two main paths: the Enterprise Agreement (EA) and the Cloud Solution Provider (CSP) model. Both are strong options, but they’re designed with very different needs in mind. Understanding the difference can help you decide which model delivers the most value for your business.
Enterprise Agreement is Microsoft’s traditional model and has been around for decades providing volume discounts and predictable costs. While Cloud Solution Provider, on the other hand, was designed for the cloud-first, fast-moving business world we live in today.
Let’s break it down and what to consider when making your choice.
Comparing EA & CSP Licensing
What is an Enterprise Agreement (EA)?
The Enterprise Agreement is Microsoft’s traditional licensing model.
- Who it’s for: Large organizations (usually 500+ users or devices) with predictable, high-volume needs.
- How it works: Multi-year contracts (typically 3 years) with a committed upfront spend and volume-based discounts.
- Billing & Flexibility: You “true-up” licenses once a year, meaning it’s harder to quickly add or remove users mid-year.
- Support: Managed directly by Microsoft. Support packages sold separately.
EA is best suited for large enterprises with stable IT needs as it’s predictable and usually cost-effective at scale. If you’re a global enterprise with thousands of employees and well-defined IT needs, EA can be the smart choice.
What is a Cloud Solution Provider (CSP)?
The Cloud Solution Provider model was designed for today’s cloud-first world. Instead of buying direct from Microsoft, you purchase licensing through a partner (like Coretek).
- Who it’s for: Organizations that desire flexibility and value-added services out of their Microsoft partnership.
- How it works: Month-to-month or annual subscriptions with no minimum seat requirements.
- Billing & Flexibility: Pay-as-you-go, scale licenses up or down anytime, predictable monthly billing.
- Support: Your partner (Coretek) is your first line of support, and often adds services, cost optimization, and hands-on help.
CSP is a great option for businesses that are looking for that personalized support, flexibility, scalable licensing options, and cost-efficient without the long-term lock-in of an EA. Perfect for dynamic organizations where headcount, budgets, or IT needs change often.
Key Differences at a Glance
|
Category |
Enterprise Agreement (EA) |
CSP |
|
Contract Terms |
3-year contract, annual true-ups; harder to add/remove users mid-year |
Month-to-month or annual subscriptions; scale up or down anytime |
|
Pricing |
Volume discounts with stringent guidelines |
Competitive monthly pricing; access to Microsoft promotions + Coretek cost optimization |
|
Support |
Direct support from Microsoft sold separately |
CSP is first-line support with hands-on service, faster response, and tailored optimization |
|
Coverage |
Requires at least 500 users or devices to qualify |
No minimum seat requirement; works for SMBs and enterprises alike |
|
Value-Add |
Licensing only |
CSP adds migration help, cloud strategy, security, governance, and ongoing Microsoft environment optimization |
Which One Should You Choose?
- Choose EA if… you’re a large enterprise that values stability, predictability, and volume discounts, and you’re ready to commit to a 3-year plan.
- Choose CSP if… you want flexibility, scalability, and partner support tailored to your business, whether you’re a growing startup, a mid-sized business, or even a larger company that doesn’t want to be tied down.
Coretek CSP Differentiators
With Coretek CSP, you get more than Microsoft licensing. You get a partner who helps you stay flexible, optimize spend, and maximize the value of your cloud investment. Here’s how we stand out
Personalized Support
- Direct access to Coretek’s engineers and support team instead of waiting in Microsoft’s global queue.
- Hands-on troubleshooting and faster response times.
Cost Optimization
- Proactive license reviews to ensure you’re not overpaying for unused or misaligned licenses.
- Guidance on leveraging Microsoft promotions and incentives to lower total spend.
Flexibility & Scalability
- No minimum user/device requirement.
- Scale licenses up or down month-to-month or annually, perfect for dynamic headcount or project-based work.
Added Services Beyond Licensing
- Cloud strategy, migration planning, and implementation.
- Security, governance, and compliance best practices tailored to your environment.
- Ongoing Microsoft environment optimization, not just “license management.”
Proactive Partnership
- Coretek acts as a true advisor, aligning your Microsoft environment to business goals.
- Regular business reviews and technology roadmapping.
Faster Time-to-Value
- With Coretek’s guidance, businesses adopt Microsoft tools more effectively and achieve ROI faster.
Why CSP is Rapidly Growing
Today’s businesses move quickly. Teams scale up or down. Projects shift. Mergers happen. In this environment, CSP shines because it:
- Eliminates long-term lock-in.
- Keeps licensing always current and compliant.
- Offers personalized support and cost-saving opportunities through partners.
With CSP, you’re not just buying licenses, you’re gaining a partner who helps you make sure every dollar spent in Microsoft’s cloud is delivering value.
Final Takeaway
Both EA and CSP have their place. EA works best for very large, stable organizations with predictable needs. CSP, on the other hand, gives you flexibility, agility, and a partner in your corner, which is why more and more businesses are choosing it as their path forward.