Microsoft has cut its Products and Services Agreement duration to one year as part of a move to a more modern program. Starting this month, subscriptions will have to be one year or shorter, similar to its cloud service offerings.
In a statement, the Microsoft licensing team explained, “As of April 1, 2017, the multi-year duration options for Office 365, Dynamics 365, Secure Productive Enterprise, and all other online services subscriptions* will no longer be available through the MPSA.”
The move will apparently make buying choices easier by unifying MPSA with the subscription durations of the Cloud Solution Provider program (CSP) and the Microsoft Online Services Program (MOSP).
Those still wanting a multi-year subscription can consider the Enterprise Agreement, which also offers price protection.
No Impact on Existing Customers
Naturally, those who have a multi-year subscription already will not be affected by these changes. Any purchase before April 1 will continue as normal and admins can continue to add users.
There is one exception to the new rule, the Windows E3 subscription. The offering is only available as a three-year subscription and will continue to be so.
Though it's not entirely clear what Microsoft means by “modern licensing”, and it has been used to justify previous changes. The company had plans to add a new Enterprise Advantage Licensing program to MPSA, but it was axed for similar reasons.
“Our goal is to provide modern licensing choices that enable customers to digitally transform their organizations. We want to accelerate and streamline how we get there,” the company said.
Microsoft is clearly trying to simplify its licensing programs, removing complexity but also options. You can read more about the changes on the TechNet blog.