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CSP vs Enterprise Agreement: Choosing the Right Microsoft Licensing Model

RMRohan Malhotra· Microsoft Licensing Consultant May 22, 2026 6 min read

How you buy Microsoft licensing matters as much as what you buy. The two dominant models — CSP and Enterprise Agreement — suit very different organisations.

CSP (Cloud Solution Provider)

Bought through a partner, CSP offers monthly or annual terms, per-seat flexibility, INR billing, and partner support. It's ideal for SMBs and mid-market companies whose headcount changes.

Enterprise Agreement (EA)

EA is a three-year commitment for larger organisations (typically 500+ seats), with volume pricing and true-up flexibility. It rewards scale and predictability but locks you in.

Most companies under 500 seats are better off on CSP — flexibility usually beats the marginal EA discount.
RM

Rohan Malhotra

Microsoft Licensing Consultant

Part of the TechWorld Solutions team helping enterprises migrate, modernize, and secure their technology.