Software giant, Microsoft will allow its customers to add cloud software subscriptions to their Enterprise Agreement licenses starting from July 4 within a single contract.

The move will allow customers to access the service, both cloud and on-premise, depending upon their requirements. The company is aiming to increase channel sales of cloud applications, which is available on by way of a Web site portal.

The new licensing agreement will provide increased flexibility to the users and allow access to several consulting, system monitoring and virtualization services through Microsoft's Software Assurance program, according to Mark Croft, director of volume licensing product management.

"This is a partner-led proposition," Croft said. "This keeps the LARs on top of the sales motion, whether it's on-premise or the cloud. It's where we see the LARs really expanding their [product] portfolio."

Microsoft also wants to remove licensing issues for companies deciding to opt for cloud based services some certain tasks. Enterprise Agreement licenses are offered to firms with more than 250 or more users or devices but includes only includes on-premise products.

Beginning with contracts renewed on July 4 and later, these contracts can be written to cover both on-premise and cloud software and the pricing will be depend on eth basis of on-premise and cloud based components, he expressed.