Microsoft Licensing Decision Guide
CSP vs. EA vs. Direct: Which Microsoft Licensing Model is Right for You?
Three licensing paths, one right answer for your business. We break down the costs, commitments, and hidden trade-offs — so you can make a confident decision without speaking to a salesperson first.
5–500+ Users
Monthly or Annual
Direct CSP Since 2014
CSP (Cloud Solution Provider)
Best for: SMB to mid-market · 5–499 users
Monthly billing · No upfront commitment · Managed by Seepath
Enterprise Agreement (EA)
Best for: Enterprise · 500+ users
3-year commitment · Volume discounts · Direct with Microsoft
Direct (MOSP / MCA)
Best for: Micro-business · 1–10 users
Self-serve · Credit card billing · No partner support
CSP
Most flexible · Any size
EA
Best value · 500+ seats
Direct (MOSP)
Simple · Very small teams
Not sure?
Side-by-Side Comparison
Every dimension that matters to a buying decision
| Feature | CSP (via Seepath) | Enterprise Agreement | Direct / MOSP |
|---|---|---|---|
| Minimum seats | 1 seat | 500 seats | 1 seat |
| Commitment | Monthly or annual (NCE) | 3 years | Monthly |
| Billing | Monthly invoice via partner | Annual true-up with Microsoft | Credit card monthly |
| Pricing vs. list | Partner-negotiated | Volume discounts | Full list price |
| Add / remove licences | Anytime | Annual true-up only | Anytime |
| Support included | Partner (Seepath) + Microsoft | Must purchase separately | Self-serve only |
| Azure Hybrid Benefit | Yes | Yes | No |
| Microsoft-funded assessments | Yes (via CSP partner) | Yes (via LSP/partner) | No |
| Azure credits & promotions | Yes (AMMP, MAAP) | Limited | No |
| Software Assurance | Via subscription (NCE) | Yes (perpetual + SA) | No |
| Best for | SMB & mid-market (5–499) | Enterprise (500+) | Micro-business (1–10) |
Prices shown are indicative. Contact Seepath for a personalised CSP quote. View reference pricing →
Help Me Decide
Answer three questions and we'll point you to the right model
How many users do you have?
1–10 users
→ Direct (MOSP) or CSP for support
11–499 users
→ CSP is the right fit
500+ users
→ Evaluate EA for volume savings
How predictable is your headcount?
Headcount changes frequently
→ CSP monthly — add/remove anytime
Stable, predictable growth
→ CSP annual for lower per-user cost
Long-term, locked forecast
→ EA if 500+ seats over 3 years
Do you need ongoing support?
Yes — managed service & support
→ CSP via Seepath — 24/7 included
Occasional help is fine
→ CSP with light-touch support
We have an internal IT team
→ EA direct may work for large orgs
For most NJ & NYC Metro businesses: CSP wins
If you have between 10 and 499 users, need flexibility, and want a partner to manage your Microsoft environment end-to-end — CSP through a Direct Bill partner like Seepath is the most cost-effective, lowest-risk path.
Why Direct Bill CSP — and Why Seepath?
There are two kinds of CSP partners. The difference matters.
Direct Bill CSP
Seepath is this- Buys directly from Microsoft — no distributor markup between you and Microsoft pricing
- Faster support escalation — direct line to Microsoft engineering when needed
- Access to all Microsoft-funded programs — AMMP credits, free assessments, FastTrack
- Full managed services — Azure, M365, security, and AI under one roof
- Transparent invoicing — single monthly bill for all Microsoft subscriptions
Indirect CSP (Reseller)
Most CSP partners- Buys via a distributor (e.g., Ingram Micro, TD Synnex) — pricing passes through an extra layer
- Slower escalation path — Microsoft issues go distributor → reseller → you
- Limited program access — some Microsoft-funded benefits require direct status
- Often licence-only — managed services and AI delivery are separate vendors
- Multiple vendors to manage — licencing partner, support partner, and cloud partner all different
Frequently Asked Questions
CSP (Cloud Solution Provider) offers monthly or annual subscriptions billed through a partner like Seepath, with no minimum seat requirement and no long-term commitment needed. Enterprise Agreement (EA) is a 3-year volume licensing contract for organisations with 500+ users that offers deeper discounts in exchange for upfront commitment and a true-up model. For most businesses under 500 seats, CSP delivers better flexibility and comparable cost.
Yes. Azure Hybrid Benefit is available through CSP subscriptions. If you have existing on-premises Windows Server or SQL Server licences with Software Assurance, you can apply AHUB to significantly reduce your Azure VM costs. Seepath will audit your existing licences during onboarding and apply AHUB where eligible — typically saving 40–60% on covered workloads.
When your EA term ends, you have several options: renew the EA, transition to CSP, or move to the Microsoft Customer Agreement (MCA). Seepath specialises in EA-to-CSP migrations — we handle licence continuity, preserve Software Assurance benefits where applicable, and often reduce your overall spend by 15–25% through right-sizing and Azure Hybrid Benefit optimisation during the transition.
No. Transferring CSP tenancy to Seepath involves no additional Microsoft charges and no downtime — your users, data, and settings remain intact. The process takes 24–48 hours and Seepath manages it entirely. We also offer a free licence audit as part of onboarding to identify any over-provisioning or savings opportunities you may have missed.
Yes. While Seepath is headquartered in Jersey City and serves primarily the NJ and New York Metro area, our cloud and licensing services are fully remote-capable and we work with clients across the US. Microsoft CSP licensing and Azure managed services are delivered entirely through Microsoft's cloud infrastructure, so geography is not a constraint.
Not Sure Which Path is Right for You?
Our licensing experts can review your current Microsoft spend, identify savings, and recommend the best model for your business — at no cost.