What is the Microsoft New Commerce Experience (NCE)?
4th January 2022
Microsoft has recently announced a change in how customers purchase and manage their licences through their Cloud Solution Provider (CSP) Program.
In January 2022, Microsoft is launching New Commerce Experience (NCE). This change will impact the way you purchase Microsoft 365 licences. But fear not. Microsoft has launched the NCE intending to reduce complexity and provide cost savings for long term commitments, whilst introducing additional features to make CSP a comparable alternative to the longstanding Enterprise Agreement (EA).
But this isn't the only announcement from Microsoft. In addition to the NCE, there will be a price increase that will take effect from 1st March 2022 for the following licences:
- Microsoft Business Basic
- Microsoft 365 Business Premium
- Office 365 E1, E3 and E5
- Microsoft 365 E5
Microsoft is offering a 5% discount for annual Microsoft 365 commitments. The annual discount will be available until the end of March 2022. Committing to your licences before the end of March 2022 will not only allow you to benefit from the discount, but also avoid the price increase.
When does NCE launch?
Here are some of the key dates that you should be aware of:
10th January 2022 – The New Commerce Experience (NCE) launches, and Microsoft will release their introductory promotions. It’s advised that you look at committing to the new subscriptions to leverage the discounts available.
1st March 2022 – the price increases across Microsoft 365 licences come into place. From March all new and renewing subscriptions will be purchased through NCE.
1st October 2022 – All customers will now have to purchase through NCE.
Subscription options for NCE
With the launch of NCE, Microsoft will be introducing monthly subscriptions to run alongside any annual subscription. They will also be launching a 36 month subscription in March 2022, allowing you to save on any future cost increase by committing to the coming years. Here’s a summary of the three subscriptions available through NCE:
Monthly subscription
With the NCE you will have the ability to purchase your Microsoft 365 licences on a monthly basis without an annual commitment. Microsoft is now offering this to provide flexibility to customers that need to make monthly changes to their Microsoft 365 or Office 365 licences plans and seat count. This subscription does come at a 20% price increase across all licence plans.
12 month subscription
Through the NCE, you’ll have the opportunity to commit to your licences through a12 month subscription. Unlike the legacy CSP model customers who consume on a 12 month subscription, you will have the option to be billed on a monthly or annual basis.
With the 12 month subscription, your pricing will be locked in for the entire term – allowing you to benefit from the additional cost savings of any price increases due in that time. This subscription will allow you to increase but not decrease the seat count.
36 month subscription
Microsoft is introducing a Multi Year Pricing to the NCE, allowing you to secure a 3 year pricing for longer term licencing commitments. With this subscription, you’ll have the option to be billed monthly, annually or upfront. This subscription will allow you to increase but not decrease the seat count.
What should you do about NCE?
It is recommended that you speak to us about moving to the NCE before 1st March 2022 to avoid the Microsoft 365 price increases and leverage the discounts available.
The NCE is also a good opportunity to audit the current licences you have to make sure you are not paying for licences you don’t need or paying a premium for features you’re not using. We have a variety of tools to do a licence optimisation review with you and can even advise which licences you may want an annual and monthly commit on to maximise your savings. Speak to us about our licence audit options.
Partner with a Microsoft 365 expert
As one of Microsoft’s partners, we’re here to help you navigate the New Commerce Experience. We want to ensure you’re getting the most from your licences and leverage the licencing discounts available.
Sound good?
