Microsoft licensing can be confusing, but there has always been a clear source of truth (besides the customer’s agreement): the Product Terms. Today, however, that no longer seems to be the case. Let us illustrate that with an example.
In the Product Terms, Microsoft stated in the May 1, 2026 update that the terms were revised to support the launch of Software Assurance in the Microsoft Customer Agreement (see screenshot below). This is, to say the least, a surprising statement.
Microsoft Customer Agreement
The Microsoft Customer Agreement (MCA) is a licensing agreement designed for Microsoft Online Services, such as Microsoft 365, Dynamics 365, and Azure. As we know, online services do not include Software Assurance (as they are not traditional “software”).
This applies to the MCA offered by Microsoft to enterprise customers in direct regions (such as the Americas and Europe), as well as the MCA Web Direct model (purchases made directly through a web browser).
Through Partners
There is one option to purchase “software” under the MCA, namely through a Cloud Solution Provider (CSP) partner. The CSP price list includes perpetual licenses (such as Office LTSC 2024, Windows Server, and Windows Enterprise per Device), but notably excludes Software Assurance.
We can also observe software subscriptions for Azure, such as Windows Server core licenses with a one- or three-year term. These subscription licenses do not include Software Assurance, but they do offer certain SA-like benefits (for example, the right to use a newer version when it becomes available), as stated in the April 1 Product Terms update.
Missing licenses due to missing SA
Approaching this from another angle, we see that certain products—such as System Center perpetual licenses and Virtual Desktop Access (VDA) per-device subscriptions—are not available on the MCA/CSP price list. One possible explanation is the absence of Software Assurance in this model.
What you need to know
For now (that is, May 12, 2026), Software Assurance is not available in the Microsoft Customer Agreement. When you need Software Assurance on your perpetual licenses, choose the Microsoft Open Value Agreement, the Enterprise Agreement or the Microsoft Products and Services Agreement.
When you want perpetual software subscriptions for one- or three years with the same benefits as Software Assurance, you can choose those subscriptions from a CSP partner. You might want to contact us for more information or help.
