Support rates decrease as spend increases.
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Microsoft Unified Support Pricing: Why Your Costs Keep Climbing.
Overview:
Microsoft Premier Support started officially disappearing from new Microsoft contracts in 2021, and enterprises around the world are still feeling the effects. Microsoft’s shift from Premier to Unified Support was a move that left long-term impacts on enterprise IT budgets, starting as soon as teams were automatically switched over to Unified Support.
What was once a flexible, pay-as-you-go model has evolved into a rigid, consumption-based pricing structure. This change has led to increased costs and diminished control for many organizations.
Here’s why your Microsoft Unified costs might feel like they’re skyrocketing every year—and what you can do to take back control.
Choose Now—Before Microsoft Chooses for You
Act now to compare support options for faster, lower-cost service—before your contract renews on June 30th.
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The Evolution from Premier to Unified Support
Under the Premier Support model, organizations purchased support hours tailored to their specific needs, covering services like Problem Resolution Support (PRS) and Support Account Management (SAM). This approach allowed for predictable budgeting and aligned support costs with actual usage.
In contrast, Unified Support introduces a tiered pricing model. How much you pay for your team’s Enterprise Microsoft support is based on a percentage of your organization’s total Microsoft spend—that includes both cloud and on-premises services.
This shift has resulted in substantial cost increases for many enterprises. Because this model is not set around how much support the team needs, it is rather calculated based on how much your team already spends on Microsoft licensing. Furthermore, if your licensing changes throughout the year, you may need to go through a “true-up” process to find out how much more you really owe for Unified Support.
Microsoft Unified Support Pricing Chart
While there are some slightly different rates depending on which licensing you have with Microsoft, the concept of how much you will be charged for support is the same. A percentage of what you already spend per year is calculated as your Unified Support cost and is added to your final cost for licensing and support.
| Spend Category | Annual Spend Range | Unified Support Rate |
|---|---|---|
| Modern Work, Biz Apps, On-Prem User | $0 – $1.5M | 7.5% |
| $1.5M – $3M | 6.5% | |
| $3M – $6M | 5.5% | |
| $6M – $15M | 4.5% | |
| >$15M | 3.5% | |
| Azure & On-Prem Server | $0 – $1.8M | 10% |
| $1.8 M – $6M | 7% | |
| $6M – $12M | 5% | |
| $12M – $30M | 3% | |
| $30M – $60M | 2.25% | |
| >$120M | 1.75% |
Microsoft Unified Support Pricing Calculator
To apply the above percentages to your estimated Unified Support spend based on the information above, use the calculator in this section. No data is saved here—it’s just a simple math machine! Use it to quickly get gain an understanding of what your Microsoft costs will be through Unified Support.
Consider an enterprise that spends $3 million annually on Microsoft Support for the entire organization. Under Premier Support, they paid approximately $105,000 annually. Transitioning to Unified Support’s Performance Plan, their costs rose to over $190,000—a 44% increase. This example illustrates the significant financial impact Unified Support can have on organizations.
Real enterprise cost comparison shows dramatic increase.
What IT Teams Lost: Compulsory Switches from Premier to Unified
Microsoft Premier Support let enterprises purchase blocks of hours for exactly what they needed—problem resolution, support account management, training, etc. This level of flexibility allowed teams to plan based on known needs. Then, if circumstances changed (as they so often do), hours could be adjusted.
Unified Support flipped that model. Now, your support cost is a percentage of your entire Microsoft bill. The more you spend with Microsoft—on Azure, Microsoft 365, or Dynamics—the more you’ll pay for support, even if your actual support needs haven’t changed.
There’s no hourly model, no rollovers, and no true correlation between support use and cost. That’s a problem for CFOs and CIOs trying to rein in enterprise IT spend.
Bottom line for what you lose in the switch to Unified: flexibility, predictability, and precision.
Now, none of those necessities are guaranteed—unless you start looking at third-party Microsoft support options.
Unified costs climb while Premier remained stable.
Why Are Microsoft Unified Costs Climbing So Fast?
Your licensing spend isn’t the only thing increasing your Microsoft Support fees. Here are more conditions that may be driving up those support costs:
Support Cost Tied to Your Cloud or Product Spend
We already mentioned this, but it is worth noting again. As your use of Azure and Microsoft 365 grows, so does your support bill—automatically. You can’t decouple the two, even if your support usage stays flat. This does not change, even if you don’t need more support hours.
No Multi-Year Price Protection
Most Unified Support contracts lack multi-year price protection. If your Microsoft consumption increases (and it likely will), your support pricing rises with it. This is in contrast to other providers, such as US Cloud, which integrates a price lock into customer costs.
Loss of Software Assurance (SA) Credits
Until 2023, you could use SA benefits to offset support costs through the Premier Support program. Those credits are gone along with the purchase of blocks of hours, which means you pay for a certain level of service (regardless of whether that plan is right-sized for your team).
Breakdown of Standard Services into Premium Tiers
Basic services you once got through Premier are now behind Enhanced support walls:
- Designated Engineering (DE)
- Enhanced Designated Engineering (EDE)
- Reactive Enhanced Designated Engineering (REDE)
These premium services offer improved responsiveness and deeper technical engagement—but they come at a steep additional cost.
With Microsoft support alternatives like US Cloud, the Premier model of service is preserved. In other words: there is just one tier of service built for customizable excellence.
Multiple factors compound Unified Support cost growth.
Exploring Alternatives: US Cloud's Third-Party Support
Organizations seeking more cost-effective support solutions may consider third-party providers like US Cloud. US Cloud offers a Premier-like model of service, including:
- Cost savings of 30-50% over Unified
- Faster response times
- Dedicated Support Engineers (DSEs)
- Flexible support options
Even if organizations choose to remain with Microsoft, US Cloud can assist in negotiating better Unified Support pricing and navigating the Microsoft Customer Agreement (MCA) procurement process.
Microsoft’s Unified Support model has introduced higher costs and reduced flexibility for many enterprises. Organizations must carefully assess their support needs and explore alternative solutions to manage IT budgets effectively.
Try a Microsoft support alternative that offers predictable pricing and consistently excellent service. Book a call today to talk about how to return to a Premier-level Microsoft support.
Microsoft Unified Pricing FAQs
How is Unified Support pricing calculated?
Unified Support pricing is based on a percentage of your annual Microsoft spend, including Office 365, Azure, and Dynamics. The percentage varies depending on the selected support tier.
Are there alternatives to Microsoft’s Unified Support?
Yes, third-party providers like US Cloud offer alternative support solutions that can be more cost-effective and provide faster response times. Additionally, US Cloud service provides a Premier-like level of support for teams looking for more customized care.
How can I reduce my Microsoft support costs?
Consider exploring third-party support options and negotiating your Unified Support agreement terms.
Why is my Unified Support bill higher than last year, even without more support tickets?
This likely happened because Microsoft Unified Support pricing is based on your Microsoft consumption—not actual support use. Any increase in Azure, M365, or Dynamics spend raises your support cost. Unfortunately, at the time of the publication of this post, there is no way to price direct Microsoft Unified Support based on actual usage needs.
Can I still sign up for Premier Support through Microsoft?
No. Premier Support is retired for most commercial customers, and no new Premier contracts are being signed. Unified is now the default.
Is switching to a third-party support provider risky?
No. Many enterprises partner with third-party support vendors to reduce costs while maintaining high-quality service. Several federal agencies and over 50 Fortune 500 companies rely on US Cloud to keep their Microsoft systems running.
Can US Cloud help with Microsoft negotiations even if we don’t switch?
Yes. US Cloud helps organizations understand Unified pricing, review contracts, and optimize Microsoft support strategy—regardless of provider. Often, having a quote from US Cloud can help customers gain better footing in a contract negotiation for Microsoft licensing.
