Microsoft Open License: What It Was, What Replaced It, and How to Migrate Without Overpaying

Microsoft Open License

Introduction — Open License Is (Effectively) Over. Now What?

For decades, Microsoft’s Open License program provided small and midsize businesses with a simple, no-frills way to buy software in volume. With a minimum entry of only five licenses, companies could make transactional purchases and even add Software Assurance (SA) for upgrades.

But as of January 2022, Open License is effectively retired in commercial channels.

Many organizations still hold valuable perpetual licenses from past Open License purchases and are now asking: What’s next? Where should we buy Microsoft licenses moving forward, and how do we transition without overspending or getting locked into a bad deal?

This guide offers a practical playbook for life after Microsoft Open License.

We’ll break down what made Open License tick (and where it fell short), explore the viable replacement programs (Open Value, MPSA, CSP, and MCA), compare their costs and flexibility in plain English, and map out a migration plan.

The goal is to help you preserve the value of the licenses you own while smoothly shifting to a modern licensing approach that fits today’s SaaS/cloud reality – all without overpaying or accumulating shelfware.

What Open License Did Well (and Where It Hurt Buyers)

The old Open License program had some clear strengths for SMBs:

• Low entry hurdle: With a requirement of just five licenses to start, nearly any small business could access volume licensing prices.
• Perpetual ownership: You owned the licenses you bought outright, which meant long-term value – a one-time purchase rather than endless subscription fees.
• Simplicity and flexibility: It was largely transactional. Need another server or a few Office licenses? You could purchase ad hoc as needed, with optional Software Assurance to get future upgrades and support. No long contracts or enterprise-level commitments required.
• Pay-as-you-go SA: If you opted for Software Assurance, you could pay annually, spreading out upgrade costs. And if you didn’t need SA, you simply bought the license without that add-on.

However, Open License had notable drawbacks that often caught buyers off guard:

• Fragmented buying = missed discounts: Because each Open License agreement was a two-year purchasing window without strong built-in volume aggregation, many SMBs ended up with scattered purchases that never hit higher volume discount tiers. In short, you might have paid more per license than a larger consolidated deal would have allowed.
• Weak price protection: Prices in Open License could change with Microsoft’s price lists. There was no guarantee of fixed pricing over time. If you bought licenses one year or more ago, you could find the price had increased. In contrast, enterprise agreements lock pricing for their term – something Open buyers didn’t get.
• Not built for cloud or subscriptions: Open License was rooted in the old model of buying software. As Microsoft shifted to cloud subscriptions (like Microsoft 365 and Azure), Open License customers had to use awkward workarounds (such as purchasing online service “tokens”). The program wasn’t aligned with the flexibility of cloud consumption or the rapid update cadence of SaaS.
• Stranded Software Assurance value: Perhaps the biggest risk was paying for Software Assurance and not fully using it. Some organizations bought SA on server or Office licenses but never upgraded to newer versions or utilized benefits like training vouchers. Others unintentionally let SA expire, losing rights like version upgrades or license mobility. When the Open License ended, any SA benefits had to be ported to another program or be forfeited. In short, there was a real danger of paying for upgrade rights that never got exercised – money down the drain.

The bottom line for buyers: The challenge now is how to preserve the perpetual license value you do have, while moving into a licensing program that fits today’s needs (which likely include more cloud services and subscription-based models).

You want the best of both worlds: keep the entitlements you paid for, but avoid overpaying as you acquire new licenses or subscriptions. So, what are the alternatives to Open License, and how do they stack up?

Your Post–Open License Options (Plain English)

With Open License off the table, Microsoft steers organizations to a handful of other volume licensing programs.

Here are your realistic choices, explained in plain English, and who they’re best for:

• Open Value (OV): A three-year volume licensing agreement intended for SMBs. It requires a modest initial purchase (again, typically 5+ licenses) and includes Software Assurance (SA) on all licenses by default. You lock in pricing for the term and can spread payments annually. This is a good fit if you still rely on on-premises software and need the benefits of SA (like version upgrades, support, or license mobility). Within Open Value, there’s an option to enroll “company-wide,” meaning you commit to covering all your PCs/users with certain products – this can earn a discount on those products. If you prefer perpetual licenses (you keep the software forever) and want predictable 3-year budgeting with upgrade rights, Open Value delivers that.
• Open Value Subscription (OVS): Think of this as the rental version of Open Value. It’s also a three-year agreement with SA included, but the licenses are subscription-only – you don’t own them perpetually. The big benefit is flexibility: with OVS you can annually “true-down” your counts. In other words, if you decrease headcount or don’t need as many licenses next year, you can reduce your quantity at the anniversary (something you cannot do in regular Open Value or most other 3-year contracts). OVS is typically a bit cheaper per year than buying outright because you’re not gaining perpetual ownership at the end. It’s a solid choice for organizations that want SA benefits and a 3-year roadmap but expect user counts to fluctuate or only need the licenses for a limited time. It’s often used by steady-but-budget-conscious SMBs or those who might otherwise consider an Enterprise Agreement Subscription but are below the EA size threshold.
• MPSA (Microsoft Products & Services Agreement): A flexible, transactional purchasing agreement suited for larger mid-market companies (generally 250+ users, though smaller orgs can technically use it too). MPSA uses a point-based volume system: basically, every purchase earns points, and your price level (A, B, C, D) improves as you buy more. There’s no set term – it’s evergreen – and no minimum purchase after the initial registration. You can buy perpetual licenses with or without SA under MPSA, as well as certain subscriptions. This program shines for ad-hoc perpetual purchases, especially if you can consolidate your orders to hit better pricing tiers. If you’re in the upper end of SMB or just over the traditional “small business” scale, and you still need to buy on-premises licenses (like Windows Server, SQL Server, etc.) without a long-term contract, MPSA might be your best bet. It offers volume discounts, similar to an Enterprise Agreement, but without the multi-year commitment. One caveat: you generally go through a Microsoft reseller (LSP) to transact under MPSA, and it works best when you have some scale (250 seats or more) to justify the effort.
• CSP (Cloud Solution Provider program): This is Microsoft’s modern, partner-led channel for everything cloud and even some perpetual licenses. Under CSP, you buy through a certified partner who can provision and manage your subscriptions (and now even sell one-off perpetual licenses). CSP is very flexible: you can typically add or remove SaaS licenses month-to-month or annually, and you pay as you go (OPEX model). For example, you can get Microsoft 365 seats on a monthly or annual subscription, Azure consumption, Dynamics 365, etc., all via your partner. CSP is great for organizations that are cloud-first or rapidly transforming and want the convenience of a one-stop partner handling licensing and support. It’s also ideal if your user count or usage fluctuates, because you’re not locked into a fixed count for years – you can adjust relatively quickly (keeping in mind, annual subscriptions in CSP have some commitments, but you can mix in monthly arrangements when flexibility is needed). Another plus: CSP now offers perpetual software licenses (like Office or Windows Server) for purchase, so it can truly be a single program for mixed needs. The downsides are that pricing can vary by partner (partners set the final price, though there is a Microsoft-set base price), and you’ll want to choose a trustworthy partner to avoid unnecessary markups. CSP aligns well with an OPEX budgeting approach and hands-on partner support.
• MCA (Microsoft Customer Agreement): The Microsoft Customer Agreement is essentially the direct purchasing route with Microsoft under the “new commerce experience.” It’s an evergreen agreement (no end date) that customers accept to buy cloud services directly from Microsoft, usually via the Azure portal or Microsoft 365 admin center. Under an MCA, you self-manage your subscriptions and Azure resources without a partner in the middle. This option is suitable if you prefer to deal directly with Microsoft for cloud purchases and you’re comfortable managing licenses on your own. It’s common for slightly larger mid-market firms or those with capable ITAM teams who want full control of their Azure and Microsoft 365 admin and billing. The MCA is very flexible (you can add/cancel cloud services as allowed by new commerce rules), and you pay per month or per year for what you use. However, unlike CSP, you won’t have a partner advocating for you – you’ll need to negotiate with Microsoft reps for any special pricing or rely on standard web pricing. This path makes sense if you want to minimize third-party involvement, particularly if you’re considering significant Azure usage without an Enterprise Agreement. It aligns with organizations that favor a direct relationship with Microsoft and have the scale or expertise to manage it effectively.

In summary, Microsoft volume licensing for SMB is now a mix of these programs. Open License’s demise means you’ll likely use one or a combination of these options. Next, we’ll compare them side by side on key factors that matter: size fit, flexibility, pricing, perpetual support, cloud alignment, and gotchas.

Quick Comparison — Where Each Option Wins (and Bites)

To make sense of the replacements for Open License, here’s a quick glance comparison. This table highlights each program’s sweet spot and potential drawbacks:

Open License Replacements at a Glance

Key takeaways: Open Value (and OVS) work well if you still require on-premises software with SA and prefer a predictable three-year commitment – just be wary of over-committing in a fixed agreement.

MPSA is ideal for larger SMBs that want to continue purchasing perpetual licenses as needed and enjoy volume discounts, but it requires strategic planning of purchases.

CSP offers maximum flexibility and cloud alignment for most SMBs, with the trade-off of dealing through a reseller (which can be a positive or negative depending on the partner’s competence and honesty). MCA is essentially going solo with Microsoft – it can be very flexible for cloud services, but you need to negotiate any deals yourself and handle administration internally.

How to Decide — Triggers That Point to Each Program

Still not sure which path to choose for your organization’s needs?

Consider these common scenarios and the program they naturally point to:

• “We have critical on-prem servers and need to maintain Software Assurance, plus we prefer predictable 3-year budgeting.”
  Best fit: Open Value or Open Value Subscription. OV would give perpetual rights with SA, whereas OVS would give you SA and a lower yearly cost with the option to true-down if needed. Both fulfill the need for a stable 3-year plan including SA.
• “We’ve got around 300 users and only occasionally buy new licenses — mostly Windows/Office and some server upgrades. We’re not heavy into cloud yet.”
  Best fit: MPSA. At that scale, you’ll benefit from the volume pricing tiers on those occasional buys. You can purchase perpetual licenses when needed and attach SA only for those products that truly need upgrades. No need to commit to a 3-year contract when your purchases are sporadic.
• “Our company is moving to Microsoft 365 and Azure in a big way. We fluctuate between 200–250 users throughout the year, and we like having a partner who can handle support.”
  Best fit: CSP (Cloud Solution Provider). CSP was built for cloud-first organizations with variable needs. A good CSP partner will manage your subscriptions, let you scale up and down (monthly or annually), and often provide value-added services. You can also still buy any remaining perpetual licenses through them, keeping all licensing under one umbrella.
• “We prefer buying directly from Microsoft. We have the IT staff to manage licenses, and we plan significant Azure usage, but don’t want an Enterprise Agreement.”
  Best fit: MCA (Microsoft Customer Agreement). You can self-serve your Azure and Microsoft 365 subscriptions directly, with an evergreen arrangement. If you’re comfortable negotiating and managing licensing in-house, MCA gives you control. Be prepared to negotiate with Microsoft for any discounts or incentives if your spend is expected to be high.

To further guide your decision, run through this quick checklist:

Is Our Open License Successor the Right Fit?

✓ Do we still need Software Assurance for on-premises products (like Windows Server or SQL Server)?
✓ Will our user or device counts swing by more than 10–20% year-over-year?
✓ Is most of our IT spend shifting to Microsoft 365/Azure subscriptions in the next 12–24 months?
✓ Do we want a hands-on partner for licensing support and consolidated billing, or would we rather manage directly?
✓ Do we require owning licenses perpetually (for core systems) or are we comfortable with subscription-only licensing?

If you answered these questions, you likely have a clearer sense of which program (or combination) fits best. For instance, the need for SA and a stable user count tends toward OV/OVS, while high cloud adoption and variable needs lean toward CSP or MCA. And remember: you’re not locked into choosing just one program.

Some organizations use a mix – e.g., CSP for Microsoft 365 and Azure, but MPSA or Open Value for a handful of on-premises server licenses they want to keep perpetual.

The key is to align each workload or license type with the purchasing program that serves it best, providing the most flexibility and savings.

Preserving Value — What Happens to Our Perpetual Rights and SA?

One big concern after the end of the Open License is making sure you don’t lose the value of what you already bought. The good news is that any perpetual licenses you acquired under Open License are yours to keep, forever.

The end of the program doesn’t revoke your rights. You should ensure you have documentation and keys for those licenses (the Microsoft Volume Licensing Service Center – VLSC – will continue to have your Open License entitlements on record).

These licenses can continue to be used on their current versions indefinitely.

However, what if you want to keep those licenses up to date or use Microsoft’s hybrid benefits? That’s where Software Assurance comes in:

• If you had active SA on a product through Open License, you need to transition that SA to another program to renew it. Microsoft recommends renewing with Open Value. You could also potentially renew SA on servers via an MPSA if that’s more convenient, but Open Value is straightforward for this purpose. Don’t let SA lapse unintentionally if you still need it. Once SA expires, you lose the rights it conferred (like future version upgrades, training vouchers, license mobility for servers, and Azure Hybrid Benefit usage).
• If you choose not to renew SA, your perpetual license stays at the last version covered. For example, if you have Office 2019 from Open License and drop SA, you’re entitled to Office 2019 perpetually, but not Office 2021 or beyond. That might be fine for some products and not for others – assess this on a case-by-case basis.
• Downgrade rights are a value to preserve: your perpetual licenses from Open allow you to run older versions than the one you purchased. This remains true even after Open License’s retirement. Keep records of what version each license grants, in case you need to deploy an older OS or application for compatibility.

Consider server licenses like Windows Server or SQL Server that you bought underthe Open License. With SA, these have valuable perks:

• License Mobility: If SA is active, you can move those server licenses to cloud environments (like AWS or a third-party hoster) or between servers without waiting 90 days – crucial for certain virtualization and cloud deployment scenarios.
• Azure Hybrid Benefit: For Windows Server/SQL, SA allows you to use your existing licenses on Azure VMs, significantly reducing Azure costs. If you plan to utilize this, maintaining SA via Open Value or an MPSA is important. If SA is gone, you can’t use those licenses in Azure; you’d have to pay full price for Azure VM licensing.

In short, take stock of all your perpetual licenses and their SA status. Decide where keeping SA is worth the money (typically for products you’ll upgrade regularly or move to the cloud).

Then use an appropriate program to carry that forward – for example, move your Windows Server licenses into an Open Value agreement to continue SA, or consolidate them in an MPSA for easier management.

And if you have any active SA benefits (training days, support incidents, etc.), plan to use them so they don’t go to waste during your transition.

Pricing & Discount Mechanics You Can Actually Influence

One of the biggest worries in switching programs is, “How can we control costs and get the best deal?” Each licensing program has its own pricing model and levers you can pull (or pitfalls to avoid).

Here’s how to influence pricing and discounts in each scenario – with a healthy dose of skepticism toward vendor “standard” pricing:

• Open Value/OVS: These programs have mostly standardized pricing (especially if you’re buying through a typical reseller; Microsoft sets the price list). Your leverage here isn’t so much negotiating a unit price discount – it’s about choosing the right structure. For example, suppose you want to minimize upfront costs and maintain flexibility, opt for the Open Value Subscription instead of the outright Open Value. In that case, OVS will lower your yearly cost and let you true-down if needed. Alternatively, if you know you’ll need the licenses permanently, regular Open Value might be a better option, as you own them at the end. Another lever is the “company-wide” option in Open Value. By committing to license all devices/users for a category (like all PCs with Windows 11 Pro, or all users with Office), you get a discount (and spread payments). Only do this if you truly need coverage for everyone – otherwise, you’re buying unnecessary licenses just to claim a volume discount, which defeats the purpose. Co-terming is another tactic: if you enter Open Value agreements, try to align them. Hence, they co-terminate the same year, making renewals easier to manage and giving you a chance to renegotiate everything at once. While you can’t haggle much on price in OV/OVS, you can ensure the agreement terms (like the ability to reduce in OVS, the products covered, and payment schedule) work in your favor.
• MPSA: The primary way to get a better deal in MPSA is to consolidate your purchases to hit higher point tiers. Instead of buying 10 licenses every quarter, for example, see if you can batch 40 licenses in a single go – that might move you from price level A to B, or B to C, which lowers the unit cost for that and future purchases. Also, don’t assume you must stick with one reseller’s first quote. Even under MPSA, multiple Licensing Solution Providers (LSPs) can register and manage your account. They can sometimes offer a slight discount or incentives on large orders (they have some margin to play with). It’s wise to bid out any significant purchase to at least two LSPs – let them know you’re shopping around; they may cut their margin to win your business. Another tactic: only attach Software Assurance to licenses where it makes sense. For example, you might purchase 50 Office licenses, but perhaps only 10 truly require SA (for users who always need the latest features or for an environment that may transition to VDI or the cloud). The others you could buy license-only, saving that SA cost. MPSA gives you that granularity. Pitfall to avoid: spreading your purchases thinly across time or providers. If different departments buy separately, you might never reach a higher discount level, and you’ll collectively pay more. Also, remember MPSA prices can still rise with Microsoft’s price adjustments – hitting a higher level might just offset an annual increase if Microsoft raises list prices. Plan big purchases ahead of known price hikes (Microsoft often announces price changes or foreign exchange adjustments in advance).
• CSP: In the CSP world, the partner is your price list – within limits. Microsoft sets a base price for cloud subscriptions (and even for perpetual software now sold via CSP), but partners can add their margin or offer discounts. Leverage this by shopping multiple CSP partners. Put out an RFP or simply ask a few to quote your license stack. Be clear that you’re comparing offers. Aside from raw pricing, consider asking for value-added benefits: for instance, can the partner include a certain amount of support hours, training, or consulting credits? Some CSPs might not budge on the per-seat price of, say, Microsoft 365 (since margins can be thin), but might offer you a one-time credit or a free migration service to sweeten the deal.
  Also pay attention to the billing terms: monthly vs annual. Microsoft’s new commerce model charges ~20% more for a month-to-month subscription versus committing to a full year. So, to control costs, you’ll want the bulk of your users on annual plans (to avoid that premium). Use monthly subscriptions sparingly for truly short-term needs or pilot projects. You can negotiate with your CSP partner on flexibility: for example, maybe you commit to 100 seats annually but ask that any growth beyond that in the year be charged at the same rate (not a higher month-to-month rate). Some partners can accommodate by adjusting your count or providing some buffer licenses. And if you’re bringing significant Azure consumption to a CSP, definitely discuss rebates or credits. Many partners get incentive funds from Microsoft for Azure growth – a good partner will be willing to share some of that in the form of a credit or services if you commit your Azure business to them. Transparency is key: insist on visibility into how the partner’s pricing works (ask for a rate card or cost-plus model). If one CSP won’t provide it, another might. The ability to switch CSP providers is also leverage – you’re not locked in beyond the subscription terms, so poor service or high markups are not things you have to tolerate.
• MCA (Direct with Microsoft): If you go the MCA route, you’re essentially negotiating with Microsoft itself. In the pure self-service model (e.g., buying directly on the website), you might think there’s no room for negotiation – but for mid-market organizations, you often can get some attention from Microsoft’s inside sales or account management if your spend is noticeable. To get better pricing under an MCA, leverage your planned Azure or Microsoft 365 spend. For example, if you expect to ramp up Azure usage, ask your Microsoft rep for an Azure consumption commitment deal: you agree to spend $X over 1 or 3 years, and in exchange, you might get some percentage discount on services or a lump sum of free credits. Similarly, for Microsoft 365, while Microsoft typically doesn’t discount licenses much outside of large enterprise deals, you can ask for things like price protection (e.g., “hold our per-seat price for two years even if there’s a general increase”) or bonus support (maybe some free FastTrack or deployment assistance). Keep in mind, Microsoft has had some price hikes on M365 in recent years, so locking today’s price for a couple of years can itself be a win. Another area to negotiate: if you’re coming off Open License with a lot of existing perpetual software plus SA, you might want assurances on how you can continue to renew that SA or transition to cloud without double-paying. Microsoft could offer promotional discounts for shifting to Azure or Microsoft 365 (for instance, a discount on Windows 365 Cloud PC if you own Windows licenses). Always ask – the worst they can say is no. The pitfall in MCA is that you don’t have an intermediary fighting for you; you have to know what to ask for and ensure it’s documented. If you’re not a huge account, Microsoft might not bend much on price, but you can often get softer benefits if not outright discounts.

To summarize these tactics, here’s a mini-chart of Negotiation Levers vs. Pitfalls by program:

No matter which program you choose, remember that you have some power to optimize pricing. It may not always be upfront discounts (especially if you’re on the smaller end), but structuring the deal right and avoiding common pitfalls can save you a significant amount.

Microsoft’s sales motions often push for more commitment, more bundles, and longer terms – you should push back with what fits your organization’s actual usage and budget profile.

Managing Cost Models — User, Device/Core, and Cloud

Microsoft licensing spans different cost models (per user, per device or core, and pure cloud consumption).

After moving on from Open License, you need to manage these models smartly in whichever new program you choose:

• Per-User Licensing (e.g., Microsoft 365 subscriptions): This is the model for Office 365, EMS, Windows Enterprise, and many other services – you pay per user per month or year. To control costs here, focus on right-sizing each user’s license. For example, avoid blindly giving everyone an E5 just because it’s the “top” offering; that often leads to paying for features most users don’t use (classic shelfware). Instead, consider an E3 + add-ons strategy: give most users a Microsoft 365 E3 (or even E1 if they have very basic needs) and then buy specific add-on licenses or a limited number of step-up licenses for the advanced features (like Power BI Pro, Phone System, or the full E5 Security suite) only for those who actually need them. This “unbundling” approach prevents overspending while still covering all requirements. In Open Value Subscription, you could true-down annually, which is great for user-based licenses if your headcount shrinks. In CSP, you achieve a similar effect by using monthly subscriptions for a portion of your users (or adjusting annual subscriptions at renewal). The key is to stay on top of user counts: set up a quarterly or bi-annual audit of who has which license, and remove or reassign licenses when people leave or change roles. In a cloud model, if you forget to do this, you’ll keep paying for a ghost user. Lastly, watch for overlapping products – e.g., if you license someone with Office 365 E3 and separate Project Online, consider moving to a bundle like M365 E5 (which includes some Project Plan 1 capabilities) as it may be cheaper for that subset. Or, alternatively, if you have E5 but not everyone uses Audio Conferencing, consider getting a separate, lower SKU and dropping E5. It’s all about dialing in the right mix.
• Per-Device or Per-Core Licensing (Servers and CALs): If your environment still has on-premises servers like Windows Server, SQL Server, or others, you’ll deal with device or core licensing and client access licenses (CALs). Under the Open License, you bought these perpetually; now you might buy more via MPSA or through CSP (as perpetual) or even consider migrating some to subscriptions (e.g., SQL Server in Azure or Windows Server via Azure Hybrid Use Benefit). To manage costs for servers, evaluate where Software Assurance truly matters. For instance, database servers that you plan to upgrade with every new SQL release or that might move to Azure should probably keep SA (for version upgrades and license mobility/Azure Hybrid Benefit). In those cases, renewing SA via Open Value or MPSA is cheaper than buying a brand-new license down the road.On the other hand, a stable file server running Windows Server 2019 that you plan to leave as-is for 5+ years might not need SA – you could save by buying it outright and not renewing SA on it. Another cost consideration: CALs (Client Access Licenses). If you’ve moved lots of workloads to cloud services, you might find your need for certain CALs (like Exchange CALs, SharePoint CALs, etc.) dropping. Don’t keep buying CALs out of habit; only license what you still use on-prem. And if you still require CALs, consider an Open Value “Company-wide” for CALs if every user needs them – it could simplify management and ensure you don’t under-license accidentally. If you decide to modernize on-prem setups by moving to subscription equivalents (like Azure SQL Database instead of SQL Server on-prem), factor in that cost trade-off: the cloud option might shift you to a per-user or per-core monthly cost, which could be higher over time but includes maintenance and flexibility. Always compare the 3-year or 5-year TCO of keeping something on-prem with SA vs. going to a
  cloud subscription.
• Cloud Consumption (Azure and beyond): Unlike per-user or per-device licensing, Azure operates on a pure consumption model (pay for what you use, measured in resource units). Post-Open License, many organizations will increase their Azure usage because it’s not something you would have bought via Open License anyway (aside from Azure credits). To keep cloud costs in check, the name of the game is monitor, optimize, and commit smartly. Ensure you have tools or scripts monitoring your Azure spend – Azure Cost Management can send alerts if you approach certain thresholds. Use Azure’s native budgeting tools to avoid surprise bills. For predictable workloads, leverage Azure Reservations or Savings Plans (one-year or three-year commitments to specific resources or dollars that net you discounts up to 30%+). These are akin to buying infrastructure in advance at a discount. If you’re in CSP, your partner can help set these up; in MCA, you do it yourself via the portal. The advantage of reservations in CSP/MCA is that you’re not going through an EA, so even smaller users can benefit from Azure discounts by pre-committing to certain usage. Negotiate with either Microsoft or your CSP partner for Azure consumption incentives. For example, Microsoft might have programs for new Azure customers that give you credits or a free migration assessment. CSP partners often have the flexibility to offer you a one-time credit if you plan to ramp up Azure spend. Avoid waste: a common scenario is migrating to Azure, then leaving resources running 24/7 that aren’t needed, or over-provisioning VM sizes. Institute a governance rule that all Azure resources have an owner and are reviewed regularly. If possible, use auto-shutdown schedules for non-production VMs and right-size resources based on Azure Advisor recommendations. Post-migration, one of the worst outcomes is a ballooning cloud bill that erodes any goodwill for the new licensing program.

In essence, managing cost models in the new world means being proactive. Cloud and subscription models give you flexibility, but they also make it easy to over-provision since it’s just a few clicks to add another user or VM.

Keep the same diligence you had with counting licenses in Open License, but now apply it to active subscriptions and running cloud services.

Migration Playbook — From Open License to Your New Home

Now let’s get into the step-by-step playbook for a smooth migration off of Open License onto your new licensing program(s). A careful, tactical transition will prevent downtime, avoid double payments, and set you up for success.

Here’s a high-level plan:

1. Inventory and Reconcile – Start by collecting every license entitlement you have from the Open License program. Pull records from the VLSC: how many of each product, version, and edition do you own? Note which ones have Software Assurance and when that SA expires (or expired). Also, list any online services you had via Open (like any Office 365 subscriptions purchased as tokens). Essentially, get a full picture of your assets. Many organizations are surprised at the shelfware or outdated rights they have – this is the time to address them. Reconcile this list with your actual usage: are you still using all these licenses? Are there any old servers that could be decommissioned instead of renewed? This inventory will guide the movement of what needs to be moved.
2. Map Equivalents in the Target Program(s) – For each product or license from your inventory, decide where its new “home” will be. For example: You have 50 Office 2016 perpetual licenses – in the future, will those users move to Microsoft 365 Apps via CSP, or do you plan to keep using Office 2016 perpetually? If it’s the former, then those 50 licenses might not require SA renewal and can be kept as backups. If you had 20 Windows Server Datacenter licenses with SA, maybe you’ll renew their SA in Open Value (to maintain upgrade rights and cloud mobility) and also plan to use Azure Hybrid Benefit with them. For user-based services that were under Open (say you bought some EMS or Office 365 through Open), plan to transition those to CSP or MCA subscriptions, since Open is no more. Basically, create a mapping of old to new. Each line item from Open License is either going to be (a) carried over as-is (perpetual, no change), (b) renewed in a new program (perpetual + SA continuing via OV/MPSA), (c) replaced by a subscription (e.g., Office perpetual replaced by Microsoft 365 E3), or maybe (d) retired because it’s no longer needed. This mapping ensures nothing falls through the cracks.
3. Decide on a Software Assurance Strategy – As part of that mapping, explicitly decide which products you will keep on SA. It’s often not cost-effective to put everything on SA, especially if you’re moving to cloud services. A good strategy is to keep SA for products that provide hybrid benefits or frequent upgrades that you truly need. Common ones are Windows Server, SQL Server (for the reasons mentioned earlier: upgrade rights and mobility), and perhaps Office if you plan one more perpetual upgrade. Suppose you have a bunch of Office or Windows 10 licenses with SA but are migrating to Microsoft 365. In that case, you might let those SA licenses lapse (or even intentionally not renew them and instead invest that budget in Microsoft 365 subscriptions). If you need to renew SA, plan how – e.g., via one consolidated Open Value agreement covering all those licenses, so you have one end date to manage. Also, check if any SA benefits, such as training days or planning services, are something you want to use before they are potentially lost; coordinate with Microsoft or partners to redeem those if they are valuable.
4. Co-term and Sequence Agreements – Timing is important. If your Open License agreement is still active (remember, they last 2 years from your last purchase), note when it ends. You want to ideally start your new agreements or subscriptions in a way that overlaps as little as possible with the tail end of Open. For instance, if you paid for SA that runs until, say, June 2024, start your new agreement or subscription on July 1, 2024. That way, you’re not paying twice for the same coverage. If some Open Licenses have already expired or the SA has ended, you might start immediately. The goal is to co-term licenses in the new program – if you have multiple pieces (like some people in CSP, some in Open Value), try to align their renewal dates. For CSP, that could mean aligning annual subscriptions to all renew in, say, July. For Open Value, it means that if you open two OV agreements in 2023 and 2024, you may make the second one a shorter term so that both end in 2026 together. Sequencing also means phasing the migration in steps: you might move your Office licenses to Microsoft 365 first, then a few months later renew server SA, etc., to avoid a big bang if that’s risky. Just avoid having long periods where you’re double-covered or, conversely, not covered at all.
5. Pre-Stage Cloud Cutovers – If part of your migration involves moving from on-prem to cloud subscriptions (or from Open tokens to CSP), set up the new environment ahead of time. For example, if you’ll be using CSP for Microsoft 365, work with your chosen CSP partner to get your Microsoft 365 tenant connected to their provisioning system before your Open licenses expire. They can transition your subscriptions with minimal disruption (often it’s a backend billing change if you already had O365, or they’ll help migrate mailboxes if coming from an older Exchange). Similarly, if going to MCA for Azure, you might need to re-link your Azure subscriptions under the new agreement – Microsoft has processes for that. Plan a pilot where a small group is moved to the new licensing program to ensure everything (access, features, billing) works as expected. For perpetual software, there’s less “cutover” – you just stop buying via Open and start buying via MPSA or CSP – but make sure your IT staff know the new process and portals to get license keys or downloads.
6. Contract the Details – When finalizing deals with Microsoft or partners for the new programs, nail down the specifics that protect you from overspending. This means getting price caps or locks in writing (e.g., your CSP partner commits that your Microsoft 365 E3 unit price will not increase for 12 months, even if Microsoft’s MSRP does), including true-down terms explicitly (if OVS, ensure the agreement says you can reduce at anniversary without penalty; if CSP, understand the cancellation policy and get a clause about adding/removing seats), and a “same discount on additions” clause (especially for MPSA or any custom deal – you don’t want the first batch discounted and later additions at list price). Also, clarify how renewals will work: if you’re in Open Value now for say Visio and Project, what happens after 3 years – do you have first right to renew, and at what pricing terms? If you negotiated via a partner, ensure they can’t massively mark up on renewal unexpectedly. Essentially, treat this like negotiating a cell phone family plan – anticipate changes and lock in fair terms now.
7. Governance & Ongoing Controls – Once you’ve switched programs, put in place some simple governance to keep costs optimized. Assign an owner (or a small team) for license management – they should have admin access to whatever portals (Microsoft 365 admin, Azure portal, Business Center for MPSA, etc.) and be responsible for tracking usage vs. allocation. Implement a quarterly review of all licensing: look at Microsoft 365 usage reports (are there inactive users with licenses that can be re-harvested?), Azure cost reports (any orphaned resources or sudden spikes?), and any on-prem deployments (are you still compliant, not exceeding your license counts?). Make this a regular cadence so that any shelfware is killed quickly and any needed licenses are procured in a planned way (preventing last-minute expensive buys). Also, keep an eye on Microsoft’s product and licensing changes – for example, if they introduce a new, cheaper SKU that fits a department, you want to know and adjust. In the new world of mostly subscriptions, the job isn’t done after migrating – ongoing vigilance will ensure you realize the savings and don’t fall into new traps.

To ensure you’ve covered all bases during migration, use this checklist:

Don’t Migrate Without These Controls:

✓ Documented price protections (caps or fixed pricing) for the first 1–2 years in the new program
✓ True-down rights confirmed (in OVS) or a plan for monthly CSP flexibility where you anticipate variability
✓ A “same-discount-on-additions” understanding with your vendor (so future growth isn’t at a premium rate)
✓ Clear SA renewal plan for each server or product that needs continued coverage (and a calendar reminder before expiration)
✓ Quarterly dashboard reports for Microsoft 365 and Azure usage, with assigned owners to act on findings

A migration done with these controls in place will put you in a strong position. You’ll avoid surprises like price spikes, unused licenses lingering around, or losing track of your assets. Instead of an emergency, the end of Open License becomes an opportunity to streamline and possibly even save money by doing things more efficiently in the future.

Common Mistakes That Cost SMBs Money

Even with the best intentions, some organizations stumble in the post-Open License transition.

Here are common mistakes to avoid (learn from others’ pain!):

• Buying the “big bundle” for everyone without analysis: Microsoft and resellers may suggest moving straight to the biggest suites like Microsoft 365 E5 or similar bundles. If you grab the Cadillac package for all users without mapping needs, you’ll pay for a lot of unused features (“E5 shelfware”). Always match the license level to the user’s role. Perhaps execs and certain power users need E5, but many others could do with E3 or Business Premium plus a couple of add-ons. Don’t let the allure of an all-in-one bundle derail your cost efficiency.
• Letting Software Assurance lapse unintentionally on key products: We’ve stressed this, but it happens often. A company assumes everything is now subscriptions and forgets that, say, their SQL Server licenses still need SA renewal. A year passes, and when they go to deploy a new SQL version or move a workload to the cloud, they realize their SA expired – meaning no upgrade rights and no license mobility. The result? They might have to re-purchase licenses or pay for pricey upgrades that SA would have covered. Mark your calendar for each SA expiration and make a conscious decision to renew or not; don’t just let it silently die if it’s still needed.
• Overcommitting to annual terms in CSP and then overpaying for extras: This mistake is about finding the balance of flexibility. Some organizations swing from one extreme (monthly everything, paying a premium) to the other (lock everything in annually). For instance, they put all 200 users on annual subscriptions to save that 20%, but three months later, they hire 20 more people and need additional licenses. Those extra 20 end up on a separate annual term (or worse, on monthly rates indefinitely if they don’t consolidate at next renewal), or if they lose 20 people, they can’t drop those licenses and are stuck with unused months. The cost of those misaligned or unused seats can wipe out the savings from annual pricing. The fix: plan for a cushion or use a hybrid approach – maybe commit 180 annually and leave 20 as flexible. And always true-up additional licenses to co-term at the next renewal so you don’t juggle multiple end dates unnecessarily.
• Fragmented purchasing across multiple channels or partners: After Open License, it’s easy to fall into a fragmented approach – maybe one department buys some Microsoft 365 direct on credit card (MCA), another works with a CSP, and IT buys some servers on an MPSA. If not coordinated, you lose any economies of scale. For example, splitting Azure consumption across two CSPs means neither sees the full volume, and you might miss volume discounts or free services one provider would give for the whole amount. Or buying licenses in small chunks from different sources could keep you at the highest price level each time. It also complicates tracking. The mistake is thinking decentralization will save time, but it often costs money. Wherever possible, consolidate and centralize Microsoft license procurement. You can still allow flexibility (like departments can request licenses as needed), but funnel it through one program or a primary partner to maximize discounts and clarity.
• Starting the migration late or rushing it at the last minute: Some SMBs heard about Open License retirement only when it was nearly upon them (or even after the deadline). In a scramble, they might quickly sign up for something like CSP or Open Value without fully evaluating the fit or negotiating terms – just to ensure continuity. This rushed approach can lead to all the issues above: incorrect license choices, poor pricing, and even double payment because they didn’t align the timing. For example, if your Open License agreement ended in December 2021 but you didn’t plan a new deal until January 2022, you might have lost out on an easy SA renewal path or had to buy new licenses in a hurry. Even now, if you haven’t done a proper migration, don’t just blindly renew something because it’s expiring next week – take a moment to consider if there’s a better option. And if you’re reading this well ahead of any deadlines, start early. A thoughtful 6-to 12-month plan will outperform a reactive 1-month fire drill every time.

Avoiding these mistakes comes down to planning, attention to detail, and not taking vendor recommendations at face value. Always ask, “Does this make sense for us? Is there a cheaper or more flexible way to do this?”

Negotiation Tactics That Actually Work Post–Open License

Negotiating with Microsoft or its partners might sound daunting for a smaller organization, but you absolutely can.

Here are some battle-tested tactics to get better deals in the post-Open License world:

• Hold a CSP “bake-off”: Treat Cloud Solution Providers like you would vendors in any competitive bid. Take an identical list of what you need – say 150 Microsoft 365 Business Premium seats, 50 E3 seats, 20 Power BI Pro, plus an Azure spend of $5k/year – and give it to two or three CSP partners. Ask them to provide their best pricing and any extras. Make it clear you’re comparing offers. You might be surprised: one partner might offer a 5% discount on the Microsoft 365 SKUs or throw in a month free, another might stick to list price but include 10 hours of free support, etc. By letting them know it’s a competition, you ignite their incentive to win your business. Even if the differences seem small, over a 3-year period a slightly better rate or some free services can add up. Pro tip: also compare intangible factors like their portal, support responsiveness, and expertise. The cheapest partner isn’t worth it if they mess up your licensing. Aim for the best value.
• Bundle your big orders under MPSA (and time them): If you decide to use MPSA for perpetual licenses, plan your purchases to maximize discounts. For example, instead of buying 20 Windows Server licenses every year, see if you can purchase 60 once every three years in one shot. You’ll likely hit a higher price level, lowering the per-license cost. And always check if any price changes are on the horizon – Microsoft often announces price increases (due to new versions or exchange rates) a few months ahead. When you hear of one and you need licenses, pull the trigger before the increase if possible and stock up.Additionally, leverage LSP competition: for a big one-time purchase (like a whole SQL Server upgrade across the company), quietly ask a couple of Microsoft resellers to quote it on MPSA. They might have room to reduce their fee or find a promotion. Microsoft sometimes offers promotions for transitioning from Open License to MPSA – ask about that as well
  . It never hurts to ask, “Can you do any better on this? We’re considering our options.”
• Insist on flexibility clauses in Open Value Subscription: If you’re signing up for OVS, remember that one of its main advantages is the ability to reduce license counts at the anniversary. Make sure your partner clearly documents this. Most will default to it, but you want it explicitly stated that you have the right to decrease quantities without penalty each year if needed. Also, negotiate price protections for the second and third year. While Microsoft sets the pricing, your partner might agree to shield you from any minor Microsoft price hikes by absorbing them, at least up to a point. Another tactic: if you think you might want to own some licenses outright at the end of OVS (OVS normally doesn’t confer perpetual rights unless you exercise a buyout option), discuss what the buyout cost would be and get that in writing. And if your business is seasonal, see if the partner can allow a split enrollment – for example, higher count in year one, lower in year two – beyond the standard true-down, especially if you can foresee the changes. The key is making OVS truly work like a subscription and not an accidental straitjacket.
• Leverage Azure growth for concessions in MCA or CSP: Microsoft and partners love Azure consumption because it often grows and drives long-term revenue. Use that to your advantage. If you’re negotiating with Microsoft directly (MCA) and plan to ramp up Azure, ask for Azure credits as a sign-on bonus – e.g., “We expect to spend $50k on Azure next year; can you provide a $5k one-time credit to help us get started?” Microsoft sometimes provides this to encourage Azure adoption. In CSP, similarly, a partner might offer a percentage back as a credit on your bill if you hit certain Azure spend milestones. Also consider multi-year Azure plans: if you commit to a certain amount of Azure over 3 years, Microsoft could give better pricing on another product as part of a deal (for instance, commit to Azure and they’ll extend a discount on Dynamics 365 licenses you also need). Another angle is to use referenceability – if you’re willing to be a public reference or case study for Microsoft’s cloud, mention that during negotiation; it might soften them up for a better rate or some free services. These tactics acknowledge that, post–Open License, you, as a customer, have choices, and Microsoft needs to earn your cloud business, not assume it.

In all negotiations, maintain a bit of healthy skepticism. Microsoft’s sales teams and partners are trained to upsell and lock in commitments. Your job is to stay focused on your organization’s actual needs and push for terms that let you remain agile.

Don’t hesitate to ask for concessions that matter to you – whether it’s a flat percentage discount, an extended payment plan, or the inclusion of a helpful service. You might not get everything, but you’ll often get something, especially if you have a clear alternative option in your back pocket.

9-Month Timeline to Switch Cleanly (Abbreviated)

Feeling overwhelmed by all these steps? Here’s an abbreviated 9-month timeline as an example of how you could plan your migration from Open License to the new world.

Adjust the timeline based on your Open agreement’s end date and complexity, but the sequence will look something like this:

• T-9 months to T-6 months: Discovery and Decision Phase. Inventory all your licenses and usage (Step 1 above). Start conversations with potential partners (CSP, LSPs) and Microsoft reps about your options – gather info and pricing proposals. By around 6 months out, aim to choose your successor program(s) (OV/OVS, MPSA, CSP, MCA, or a combo) based on fit. Get executive buy-in on the direction, since some decisions (like moving to cloud services) might need CIO/CFO approval.
• T-6 months to T-4 months: Negotiation and Planning Phase. With your direction chosen, do the detailed negotiations. Run that CSP bake-off, negotiate with Microsoft if needed (for MCA or any special deals), and finalize which partner(s) you’ll use. At the same time, plan out the migration. Decide which licenses migrate when, and sketch the co-terming strategy. If you have any SA renewals coming up in this window, decide now to renew them in the new program or not. By 4 months out, you should have signed any new agreements (e.g., set up your MPSA enrollment, signed the Open Value contract, or at least agreed in principle with a CSP provider) so that the groundwork is laid.
• T-4 months to T-2 months: Setup and Contract Finalization Phase. Now, iron out the contract details in writing (Step 6 above). Make sure all the negotiated goodies (price locks, flex terms, support promises) are documented either in the agreement or an addendum/SOW from the partner. Begin setting up the new licensing environment: for CSP, have the partner link to your tenant and populate the new subscriptions (you can keep them dormant or in trial until cutover); for Open Value, get the agreement active with at least one initial order (perhaps an SA renewal or a trivial purchase to kick it off); for MPSA, ensure your accounts and purchasing portal (Business Center) are accessible and you know how to use them. If training IT staff or end-users is required (for example, when transitioning to new Office 365 apps), begin scheduling it. Essentially, use this window to prepare everything so that flipping the switch becomes more of a formality. At T-2 months, do a mini-pilot: maybe move a small department’s licenses to the new system as a test run.
• T-1 month: Cutover and Communication Phase. In the final month, execute your migration. If you’re swapping out licenses, this is when you might, for example, assign Microsoft 365 E3 licenses to users who had old Office 2016, and then remove the old installs or stop using old keys. If you are changing how you purchase Azure, ensure the billing connection swaps over at the month’s end. Importantly, communicate the changes to your stakeholders (IT team, procurement, finance, end-users, if necessary). End-users might need to know if there’s a new login procedure or new software coming (though in many cases, the transition can be invisible to them). Internally, ensure that everyone is aware of the new purchasing process and is no longer using the old Open License route. If you timed it right, you let the Open License agreement expire naturally or just let it idle out without needing renewal.
• Go-Live (Day 0): Congrats, you’re now officially transacting in the new program(s)! On the go-live date, double-check a few things: Did all needed users get their new licenses? Is the new partner portal showing the correct information? Is multi-factor auth still working for accounts moved to new subscriptions? Essentially, verify everything is working. Also, take a snapshot of license allocations and counts on this day – you’ll use it as a baseline to track going forward.
• T+30 days (Post-Mortem and Steady-State): After about a month in the new regime, do a post-mortem. Gather the team and review: Are we seeing the expected charges on invoices? Any surprises in the first billing cycle? Did we accidentally over-provision something during the switch? Resolve any issues while the memory is fresh. This is also the time to lock in the ongoing governance. Set up those quarterly business reviews with your CSP (if applicable), schedule internal quarterly license reviews, and ensure all documentation (license inventory, new agreement details) is stored where it should be. Essentially, transition from project mode to normal operations, with the new controls in place.

By following a timeline like this, you reduce the risk of a rushed transition. Nine months might be more runway than some need, but the idea is to plan backward from your deadline with enough cushion.

It’s far better to have things ready early than to be scrambling in the final weeks. Plus, an orderly migration gives you more leverage in negotiation – you’re not desperate so that you can walk away from a bad offer.

FAQs

Do we still own our Open License software after migrating?
Yes. Any perpetual licenses you bought under Open License remain yours, even after the program’s end. Moving to a new licensing program doesn’t cancel or revoke those entitlements. For example, if you bought 100 Office 2019 licenses via Open, you keep the right to use Office 2019 perpetually. The only thing to watch is if you had upgrade rights (Software Assurance) on them – that part requires renewal in a new program if you want to keep upgrading. But the base licenses are yours to keep and use according to their original terms.

Can we mix CSP for cloud services with MPSA or Open Value for perpetual licenses?
Absolutely. You are not forced to pick one program for everything. In fact, many organizations adopt a dual approach: use CSP for subscription services like Microsoft 365 and Azure, and use MPSA (or Open Value) for purchasing the occasional perpetual license (like a Visio copy, a Windows Server, etc.). Microsoft’s licensing programs can coexist. Just be sure to keep track of where you bought from, as they have different portals and contacts. Mixing programs can actually optimize costs – you use each for what it’s best at.

Is Open Value Subscription better than CSP for variable headcount?
It depends on your scenario. Both OVS and CSP address the need for flexibility, but in different ways:

• OVS allows an annual reduction in licenses. If your user count goes down, you can drop licenses at the agreement anniversary, but not before. It’s a once-a-year adjustment.
• CSP (especially with monthly subscriptions) can allow adjustments virtually any month, but at a price (monthly per-user costs ~20% more than annual). With annual CSP subscriptions, you’re locked during the year, similar to an EA or OV.
  If your headcount swings wildly up and down or you have temporary staff for a few months at a time, CSP with monthly terms might give you true month-to-month flexibility (just budget for that premium). If your headcount is mostly steady, with maybe a once-yearly trimming, OVS can work and might be more cost-effective over the term because you get lower pricing than monthly CSP rates. Another aspect: OVS includes Software Assurance and is more focused on on-prem software rights, while CSP is purely subscription. Therefore, if you require SA and perpetual rights, OVS may still be preferable. In short, OVS is better for predictable (but slightly variable) environments that still want SA. In contrast, CSP is better for cloud-focused environments or those that need real-time flexibility and partner support.

How do we avoid E5 shelfware when moving off Open?
The key is not jumping straight into an all-E5 licensing strategy without analysis. Under Open License, you probably bought specific products à la carte (Windows, Office, CALs, etc.). Now, Microsoft might pitch: “Hey, just get Microsoft 365 E5 for everyone, it covers everything!” While E5 does cover a lot (Office, Windows Enterprise, security suites, voice, analytics, etc.), most organizations won’t utilize all those components for every user. To avoid paying for what you won’t use:

• Perform a role-based needs analysis. Group users into personas – e.g., basic users (email, Office apps), standard information workers, power users, etc. This will tell you how many really need the advanced bells and whistles.
• Consider E3 or Business Premium plus add-ons as needed. For instance, perhaps only 10% of your users require the advanced security or telephony features that E5 provides. You could license those 10% with E5 and offer the other 90% E3 (or even cheaper plans) plus just the specific add-on licenses for, say, threat protection if needed.
• Take advantage of Microsoft 365’s modular licensing. Many E5 components are available à la carte (like Office 365 E5 without Audio Conferencing, or EMS E5 components separately). It’s more work to manage multiple SKU types, but it can save a lot of money.
• Review usage regularly. If you do go with some E5 licenses, check the utilization of those features (Power BI usage, Teams Phone usage, advanced security portals). If certain E5 features aren’t being used, consider downgrading those users at the next renewal. The beauty of subscriptions is you can adjust over time.

In summary, avoid E5 shelfware by not over-buying in the first place and by monitoring after you buy. Microsoft’s top bundle should be a strategic choice for specific needs, not a blanket default.

Can we renew Software Assurance without an Enterprise Agreement?
Yes, you can. One myth is that without a big Enterprise Agreement (EA), you lose the ability to have SA – not true. You have a few options:

• Open Value is the go-to program for continuing Software Assurance on existing licenses. You can enroll those licenses into an Open Value agreement (even a single pool agreement just for, say, your servers) and renew SA for a 3-year term.
• MPSA also allows SA purchases. If you have an MPSA, you can attach SA to licenses there, either at the time of a new purchase or as a renewal if you have active SA from another source (you’d likely need help from a partner to transition it).
• If you were large enough for an EA, you wouldn’t be asking – but since you’re likely SMB/mid-market, Open Value is the closest analog to an EA’s SA benefits.
  One thing to plan: you must renew SA before it expires (there’s typically a 90-day window after expiration in some cases, but sooner is better). If your Open License SA is expiring and you can’t get an Open Value in place in time, talk to a reseller – sometimes Microsoft provides a short grace period or can backdate an Open Value start to align dates. But generally, yes, you can and should renew SA via non-EA programs if those assets are important. It’s a bit more manual than an automatic EA renewal, but entirely possible.

Five Expert Recommendations

To wrap up, here are five expert tips to ensure your post-Open License journey is cost-effective and smooth:

1. Fit over buzz: Pick your next licensing program based on your organization’s actual needs and usage patterns, not just on what Microsoft or partners are hyping. The best fit might be a less glamorous option (like sticking with some perpetual licenses on MPSA), and that’s okay. Don’t be sold on a solution that doesn’t align with your requirements.
2. Segment your license estate: One size likely doesn’t fit all. It’s often optimal to segment – keep certain critical infrastructure on perpetual licenses with SA (for control and continuity), while moving end-user productivity software to subscriptions for flexibility. By segmenting, you maximize value: use each model where it delivers the most benefit.
3. Leverage partner competition: Whether it’s for CSP services, an MPSA reseller, or even an Open Value LAR, don’t go with the first quote blindly. Treat it like a negotiation for any major purchase. Get multiple quotes, play them (politely) against each other, and don’t be afraid to switch providers if a better deal and support await. Partners know SMBs have choices now – use that to your advantage.
4. Codify every protection: In any agreement or quote, ensure that all the promises and critical terms are written down. Verbal assurances that “we won’t raise your price” or “you can reduce later, no problem” mean nothing if it comes to a dispute. Get price locks, true-down rights, and discount guarantees in the contract or at least in an official email/order form. It’s much easier to enforce or renegotiate when you have documentation.
5. Review and right-size quarterly: Don’t “set and forget” your new licensing arrangement. Schedule a regular quarterly (or at least semi-annual) review of your Microsoft licensing. Include IT and finance together: look at what you’re using vs. what you’re paying for. This proactive stance will identify issues such as unused licenses, over-provisioned resources, or emerging needs early. Regular tune-ups of your licensing ensure you stay optimized and avoid creeping overspend or compliance issues.

By following these recommendations, SMB and mid-market organizations can navigate the post-Open License world with confidence. You’ll be able to modernize your licensing approach, support your move to cloud services, and negotiate on a strong footing – all while keeping a tight rein on costs and not leaving value on the table.

The era of Open License may be over, but with the right strategy, you can turn this transition into a win for your IT budget and flexibility. Enjoy your newfound licensing freedom, and stay sharp – Microsoft’s licensing landscape will undoubtedly continue to evolve, and you’ll be ready for it.

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Fredrik Filipsson

Fredrik Filipsson brings two decades of Oracle license management experience, including a nine-year tenure at Oracle and 11 years in Oracle license consulting. His expertise extends across leading IT corporations like IBM, enriching his profile with a broad spectrum of software and cloud projects. Filipsson's proficiency encompasses IBM, SAP, Microsoft, and Salesforce platforms, alongside significant involvement in Microsoft Copilot and AI initiatives, improving organizational efficiency.

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