Microsoft have announced that in 2022 they are changing how customers purchase and manage their licenses through their Cloud Solution Provider (CSP) Program. Launched on the 10th of January, the NCE is the latest pricing model for Microsoft 365, Dynamics 365, Windows 365 and Power Platform Subscriptions. The NCE will alter the way you purchase these service licenses. Microsoft designed this change to simplify billing processes while providing cost saving benefits for longer-term subscriptions.
Although not directly related to the New Commerce Experience, Microsoft have announced that Microsoft 365 licenses will increase in price by an average of +15% on March 1st 2022. However, before the end of March 2022, Microsoft are offering a 5% discount for customers who make annual commitments to Microsoft 365. This means that committing to your licences before the end of next month not only makes you eligible for the price reduction, but helps you to avoid the coming NCE price increase too.
The Microsoft New Commerce Experience Timeline
10th January 2022 - The Microsoft New Commerce Experience launched, and Microsoft released their introductory promotional pricing offers, including the 5% discount on annual term offers. We recommend that you begin looking at the new subscriptions now to avoid missing out on the available promotions.
1st March 2022 - the Microsoft 365 license price increase comes into effect. All new and renewing subscriptions will be bought through the Microsoft New Commerce Experience from this point onwards.
June 2022 - Monthly term promotional pricing will be effective through the Microsoft New Commerce Experience. July 2022 – All commercial annual term subscriptions in the existing CSP business should be transitioned through the NCE.
July 2022 – All commercial annual term subscriptions in the existing CSP business should be transitioned through the NCE.
1st October 2022 - All customers will have to purchase through the Microsoft New Commerce Experience.
Subscription options for the NCE
Microsoft are offering three subscription plans for the Microsoft New Commerce Experience: monthly, annual and thirty-six month.
Monthly subscription
Microsoft are offering the opportunity to purchase Microsoft 365 licences on a flexible monthly basis via the NCE. This is ideal for customers who need to make frequent changes to their Microsoft 365 license plans and seat count. However, the downside is that this subscription comes at a 20% price increase across all license plans.
Annual subscription
Another option provided by the NCE is to commit to licenses through a twelve-month subscription. Microsoft are now offering you the option to be billed on a monthly or annual basis with the NCE, offering you more control over your spending. Your pricing will be locked in for the entire term with the annual subscription, helping you to avoid any price increases that occur during that year. With this particular subscription, you can increase the seat count at any time, but can only decrease it during the cancellation or adjustment window.
36 month subscription
For longer term licensing commitments, you can leverage the Multi Year Pricing provided by the Microsoft New Commerce Experience. This option arrives slightly later than the other two subscriptions, hitting the market in March 2022. This subscription allows you to secure three-year pricing, and gives you the choice to be billed monthly, annually or upfront. Like the annual subscription, you can increase your seat count, but only decrease it within the cancellation or adjustment window.
What does the Microsoft NCE mean for current customers?
While any change can be intimidating, you should look at the Microsoft New Commerce Experience as a positive opportunity for your business. Microsoft specifically designed it to create a less complex, more consistent purchasing experience for current and future customers. The NCE also provides an opportunity to assess the current Microsoft licenses you are paying for to ensure that you are not funnelling funds into unnecessary or unused licenses or features.
Plus, the Microsoft New Commerce Experience offers these additional benefits:
- A single contract to transact through (Microsoft Customer Agreement)
- A 72-hour cancellation window post-purchase with pro-rate refunds
- The opportunity for growth enablement through digital transformation
- More flexible buying opportunities allowing for scalability
- A simplified Azure billing process with Azure plan
How Brick9 can prepare you for the NCE
At Brick9, our Microsoft expertise makes us the perfect partners to guide you through the transition to the Microsoft New Commerce Experience. We want to ensure that you are getting the most out of your Microsoft licences, now and in the future. We encourage you to get in touch with us to discuss licencing options before 1st March 2022 so we can help you take advantage of any promotions or discounts and avoid the upcoming Microsoft 365 price increases.
There’s not long to go before the introduction of the NCE. Speak to one of our representatives today to ensure that your business is fully prepared.
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