To further empower Cloud Solution Provider (CSP) partners and support organizations navigating the AI-powered future of work, Microsoft is introducing new three-year subscription terms for Microsoft 365 E3, E5, and Teams Enterprise in the CSP channel starting June 1, 2025. These additions reflect Microsoft’s commitment to creating consistency across purchasing channels and enabling long-term planning and scalability for enterprise customers. 

As digital transformation becomes increasingly AI-centric, this move offers CSP partners a powerful opportunity to deliver sustainable value, customer retention, and operational efficiency through longer-term commitments. 

Starting June 1, 2025, Microsoft will offer the following plans under three-year terms for CSP partners: 

• Microsoft 365 E3 (without Teams) 
• Microsoft 365 E5 (without Teams) 
• Microsoft Teams Enterprise (standalone) 

These SKUs will be available with two billing options: 

• Upfront (triennial) 
• Annual (once per year for three years) 

Minimum purchase requirement: 100 licenses per SKU.
Availability: Worldwide via CSP on June 1, 2025. 

Additionally, starting July 1, 2025, Microsoft will release three-year subscription options for: 

• Microsoft 365 E5 Security mini suite 
• Microsoft 365 E5 Compliance mini suite 

These additions enable customers to consolidate their security and compliance investments while committing to long-term growth strategies. 

To support adoption and encourage migration from legacy or on-premises tools, Microsoft is launching the following promotions: 

From June 9 to December 31, 2025: 

• 10% discount for new-to-E3 or new-to-E5 customers 
• Applicable to plans with or without Teams (three-year term only) 
• Annual or upfront billing 
• For customers with 100–2,400 licenses 

From July 1 to December 31, 2025: 

• E5 Security and Compliance promotions 
• Three-year term only 
• Minimum 100 licenses; up to 1 million licenses 

Additionally, the 15% Microsoft 365 Copilot promotion is extended until June 30, 2025—enabling organizations to unlock advanced AI productivity at a lower cost. 

With the release of the new SKUs, Microsoft 365 E3/E5 with Teams (three-year term) will move to End of Sale (EOS) on June 1, 2025. However, existing customers will still have the option to convert their current one-year or expiring subscriptions to the new three-year terms — including those with Teams — ensuring a smooth transition while retaining full entitlements. 

Microsoft’s updated guidance provides flexibility at mid-term or renewal to adjust billing frequency and subscription length. For more, partners can refer to Manage term duration and billing frequency. 

Sources: Manage Term Duration and Billing Frequency – Partner Center | Microsoft Learn