MPSA — Microsoft Products and Services Agreement

The Microsoft Products and Services Agreement (MPSA) is a transactional Volume Licensing framework designed to consolidate the purchase of Microsoft cloud services, software subscriptions, and perpetual on-premises licenses under a single, non-expiring agreement. It is specifically engineered for medium-to-large organizations that require a flexible, "pay-as-you-go" procurement model without the multi-year platform commitments or organization-wide standardization required by an Enterprise Agreement (EA).

Key Features and Structure

• Transactional Flexibility: Unlike the Enterprise Agreement, which requires an upfront commitment to cover every qualified user or device, the MPSA allows organizations to purchase exactly what they need, when they need it.
• Purchasing Accounts: The MPSA uses a structural concept called "Purchasing Accounts." An organization can define different departments, affiliates, or locations as separate accounts, allowing for decentralized purchasing while still aggregating points toward higher volume discount tiers.
• Point-Based Discounting: Products are categorized into three pools: Applications (e.g., Office), Systems (e.g., Windows Operating System upgrades), and Servers (e.g., SQL Server). Purchases earn points within these pools. As point totals reach specific thresholds (Levels A, B, C, and D), the organization automatically qualifies for deeper price discounts.
• No Expiration: The MPSA itself does not expire. Once the master agreement is signed, the organization can continue to place orders indefinitely, provided they meet minimum purchasing requirements to maintain their discount level.

Common Misunderstandings

A frequent misconception is that the MPSA is a replacement for the Cloud Solution Provider (CSP) program. While both offer cloud services, the MPSA is a direct agreement between the customer and Microsoft (supported by a Licensing Solution Partner), whereas CSP is a partner-led model. Additionally, organizations often confuse MPSA with the Open License program; however, Microsoft has retired the Open program, positioning MPSA and CSP as the primary alternatives for transactional needs. Finally, it is important to note that MPSA does not offer the "Enterprise" pricing advantages or the "Software Assurance inclusive" nature of an EA; Software Assurance is optional under MPSA.

Where the Term Appears

On a quote or invoice, the MPSA will typically be identified by a 10-digit MPSA Agreement Number. In the Microsoft 365 Admin Center or the Volume Licensing Service Center (VLSC) successor, the Business Center, assets will be categorized under this specific agreement type to distinguish them from CSP or EA entitlements.

Practical Considerations: What This Means When Buying

When choosing between MPSA and other programs, consider your organization's growth and management style. If you have multiple autonomous subsidiaries that need to buy their own software but you want to leverage the collective buying power of the entire group to lower prices, MPSA is highly effective. However, if you require the lowest possible per-seat price for a fully standardized workforce, an Enterprise Agreement may still be more cost-effective despite its rigid structure. MPSA is ideal for "mixed" environments where the transition to the cloud is ongoing and on-premises server licenses are still frequently required alongside Microsoft 365 seats.

Related Terms

• LSP (Licensing Solution Partner): The specialized tier of partners authorized to sell MPSA.
• Microsoft Business Center: The dedicated portal for managing MPSA licenses and tracking point levels.
• Software Assurance (SA): The optional maintenance program that can be added to MPSA licenses for version upgrades and support.
• Enterprise Agreement (EA): The commitment-based alternative for organizations with over 500 users/devices.

Need this in a quote?

Our team translates glossary concepts into concrete licenses, part numbers and price lists.