Microsoft OVS-ES Is Retiring: What It Means for Your School

Last updated 9 November 2026

About this information. This post is based on Microsoft’s announcement of 5 November 2026 and on its Microsoft 365 Education portfolio and FAQ pages, which Microsoft last updated on 7 November 2026. Microsoft publishes these pages once for all countries, not for any single market. They don’t name any country, and their dates and rules apply to education customers worldwide, including UK schools. They give no prices: UK pricing will be in pounds through Microsoft’s partners and hasn’t been released yet.

Some details are likely to change. Microsoft says pricing, availability and offer terms are “subject to change”, and it describes the OVS-ES retirement as “planned”. It hasn’t yet published full product terms for the new editions, and its two pages give different dates for some Office 365 A1 details. We’ll update this post as Microsoft confirms the details. Please check the date above, and speak to us before making budget or renewal decisions.

On 5 November 2026, Microsoft announced major changes to its Microsoft 365 Education portfolio. For many UK schools, the headline is simple: Microsoft plans to retire the OVS-ES agreement on 1 January 2028, and the free Student Use Benefit goes with it.

There is no need to panic. Your current agreement runs until the end of its term. However, you do need a plan, and for most schools that plan will include a budget for pupil licences that are free today. In this post, we explain what is changing, when it happens and what your school should do next.

What is the Microsoft OVS-ES agreement?

OVS-ES stands for Open Value Subscription for Education Solutions. For years, it has been one of the most popular ways for schools to license Microsoft software. Instead of counting devices, your school counts its full-time equivalent (FTE) staff once a year, and that count covers Microsoft products across the whole school.

Primary schools, secondary schools, academies and trusts all use it. Most OVS-ES schools also rely on the Student Use Benefit, which gives pupils Microsoft 365 at no extra cost when staff are licensed.

What did Microsoft announce?

The key changes for schools are:

• OVS-ES and the School agreement (School 3) retire on 1 January 2028. After that date, they cannot be signed or renewed.
• The Student Use Benefit retires on the same date across all purchasing programmes, not just OVS-ES.
• Office 365 A1 stops selling through partners on 1 May 2027 and retires on 1 January 2028. This includes staff on A1, who will need a paid licence.
• The 100 TB base storage allocation goes. Instead, each paid licence adds storage to a shared pool.
• Pricing moves to a single price. From 1 May 2027, online services bought through Academic Volume Licensing move to one price across all price levels.
• New editions arrive: Microsoft 365 Education A2 and A7, a no-cost A0 offer for pupils, and refreshed A3 and A5 editions.

You can read the full details on Microsoft’s portfolio update page.

How does this affect schools on Microsoft OVS-ES?

Your current agreement continues

Microsoft has confirmed that existing customers keep their licences, entitlements and pricing until their agreement term ends. Nothing changes overnight. Even if 1 January 2028 falls in the middle of your agreement, your current terms, including the Student Use Benefit, still apply until it ends.

You will need a new licensing route

Once OVS-ES retires, your school cannot sign or renew an OVS-ES agreement. Every OVS-ES school will need to move to another way of buying Microsoft licences. The two main routes are the Cloud Solution Provider (CSP) programme and the Enrollment for Education Solutions (EES). They differ in commitment length, flexibility and how licence numbers can change during the year, so it pays to compare them carefully.

Pricing could change sooner than you think

The pricing change starts earlier than the retirement. It applies from your first renewal or extension on or after 1 May 2027. At that point, Academic Volume Licensing online services move to a single price across all price levels. Depending on your current price level, your costs could rise or fall.

Early renewal is not an option

Some schools may consider renewing early to lock in current terms. Microsoft has ruled this out: its FAQ states that early renewals designed to avoid the changes are not permitted.

Pupil licences need a rethink

This is the biggest change for most schools. When the Student Use Benefit retires, pupils will need their own licence at your first renewal on or after 1 January 2028.

Why the free A0 licence won’t suit most schools

A0 is free, but it is a cut-down licence with strict conditions:

• No SharePoint, email or Teams. Pupils get the Office apps and OneDrive only. If pupils open shared drives or class resources in SharePoint, for example through Cloud Drive Mapper or Teams, they need a paid licence.
• Windows devices only. Pupils must actively use a Windows device for learning. Pupils on iPads or Chromebooks are not eligible.
• Every member of staff must hold a paid licence at A2 or above.
• A ratio cap. Each paid staff licence supports up to 20 A0 pupils.
• No device management or extra security. A0 includes no Intune and no Conditional Access, and it adds nothing to your storage pool.

A2 or A3?

For most schools, the realistic choice for pupils is between the paid A2 and A3 editions:

• A2 covers the Office apps, OneDrive, SharePoint and email. It suits pupils who need shared files and email but whose devices are not managed through Intune.
• A3 adds Intune for Education, Windows Autopilot and Windows 11 Education. Pupil A3 is the like-for-like replacement for what the Student Use Benefit gives pupils today.

If your school manages devices with Intune, or is “cloud first”, staff will need A3, and pupils who use managed devices are likely to need A3 too. Shared trolleys and carts can sometimes be licensed per device instead, so there is room to find the right mix. Every paid edition is available with or without Teams.

Storage may become a factor

Today, your tenant receives 100 TB of base storage. After your first renewal on or after 1 January 2028, that allocation disappears and storage grows only with paid licences:

If your pool runs out, Microsoft gives you 30 days to fix it before OneDrive and SharePoint become read-only. Schools with large OneDrive or SharePoint footprints, or years of old pupil accounts, should check their usage now.

Key dates for schools

• 1 December 2026: Microsoft 365 Education A2 becomes available.
• 1 May 2027: Single pricing applies at your next renewal or extension. Office 365 A1 stops selling through partners.
• 1 January 2028: OVS-ES, School 3, the Student Use Benefit, Office 365 A1 and free Exchange Online for Alumni all retire. A0 and the new A3 and A5 editions become available. The new lineup and storage model apply from your first renewal or extension on or after this date.

What should your school do now?

Although 2028 feels a long way off, the changes will land in a budget year you are planning now. Here are six steps to take:

1. Find your dates. Check when your current OVS-ES term ends and when your next anniversary falls.
2. Count your staff and pupils. Your pupil numbers matter far more after 2028 than they do today.
3. Check how pupils use Microsoft 365. Do they open SharePoint, Teams or email? Are their devices managed through Intune? On Windows, iPad or Chromebook?
4. Check your storage. Review how much OneDrive and SharePoint storage your school uses today.
5. Compare your options. Look at CSP and EES side by side, including cost, flexibility and commitment length.
6. Talk to your partner early. A clear plan avoids rushed decisions and budget surprises.

Microsoft also publishes a helpful FAQ on the education changes.

How SchoolCare can help

SchoolCare has supported UK schools and trusts for more than 40 years, and we manage Microsoft licensing for schools across the country. We understand how these changes affect real school budgets.

If your school buys Microsoft through SchoolCare, we will be in touch to confirm your staff and pupil numbers. We will use them to recommend the right licence for your staff and pupils, model your costs under the new pricing, and check your storage before your renewal.

Not a SchoolCare customer yet? We can review your current agreement and help you plan a smooth move away from OVS-ES.

Contact the SchoolCare team to find out where your school stands.