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The Microsoft New Commerce Experience

In January 2022, Microsoft launched the New Commerce Experience (NCE). The Microsoft NCE sits within the Cloud Solutions Provider (CSP) program for Azure services, replacing the legacy Microsoft Cloud Agreement.

What is the Microsoft New Commerce Experience?

The New Commerce Experience is Microsoft’s new subscription model, designed to change the way customers purchase Microsoft 365 (M365), Dynamics 365 (D365), Windows 365 (W365), and Power Platform licences.

The goal of the Microsoft New Commerce Experience is to maximise customers choice and flexibility with a new, streamlined approach to purchasing, and greater choice of purchasing options for customers.

Customers will find that managing their subscriptions has suddenly become much simpler, as now the ‘Microsoft Customer Agreement’ will be the only agreement customers will have to sign for all M365, D365, W365, and Power Platform products, replacing the legacy system which had over 30 licencing agreements, each with its own T’s & C’s.

The NCE has also introduced a number of features, making the CSP New Commerce Experience comparable to Microsoft’s Enterprise Agreement (EA).

What is new with Microsoft NCE?

The Microsoft NCE program brings a number of new changes to the CSP program. Here’s a rundown of the changes in comparison to the legacy system.

Subscription options

In the legacy system, customers had the choice of either monthly or annual term agreements. Now, customers will have the choice of monthly, annual, or multi-yearly (36 month) term agreements for the NCE subscription options.

Pricing

In the legacy system, month-to-month and annual subscriptions were charged at the same price.

Now in the Microsoft NCE, customers will face a 20% rise in price for monthly subscriptions, whereas annual subscription prices will remain the same.

Cancellation Policy

In the legacy system, customers could be refunded on any cancellation within any time window. In  the Microsoft NCE, customers will only be refunded within 72 hours of purchasing, on any subscription model.

Trials

In the legacy system, customers could manually covert to paid offers. In the New Commerce Experience, trails will be valid for 30 days and cannot be cancelled, and will automatically convert to paid offers.

Multi-Geo

Enables businesses to provide and store data in all geo-locations they have chose to meet residency data requirements.

Currently only available to customers on Enterprise Agreements (EA), however, Multi-Geo will be available to all customers who purchase Microsoft services through a CSP in 2022.

Home Use Program (HUP)

The HUP will give employees a 30% discount to purchase a M365 subscription.

Hybrid Use Benefits

Allow organisations to capitalise on Microsoft investments via the CSP program.

Microsoft NCE Subscription Options

With Microsoft’s legacy system, monthly subscriptions were the only option. The NCE introduces flexibility by offering customers a choice of three subscription models.

Note: The 72 hour cancelation window applies to all subscription options.

Monthly subscription

Like the legacy system, the New Commerce Experience enables customers to purchase M365 licences on a monthly basis, offering flexibility, but at a 20% price increase when compared to the annual or multi-yearly options. In terms of seat changes – that is the number of users a customer wants to add to their contract – customers can always increase the number of seats during the contract, but can only decrease seats within the cancellation window or at the end of the agreement.

Annual subscription

Customers who choose the annual subscription contract will have the option of either monthly or annual payment options, at the standard pricing point. In terms of seat changes, the same applies, where customers can always increase the number of seats but only decrease within the cancellation window or at the end of the contract. The annual NCE subscription option brings financial security by price locking at the start of the contract, ensuring no fluctuating costs in the duration of the contract.

Three-year subscription

The Multi-yearly option brings flexibility and stability for a customer’s payment options, offering monthly, annual, or upfront payment options. Pricing is standard and offers longer-term price locking, bringing cost savings for customers in the long-term. Again, customers can always increase seats but only decrease within the cancellation window or at the end of the agreement.

Microsoft 365 price increases 

From the 1st of March 2022, the following will see price increases, changing a customers purchasing process: 

 

 

01

Enterprise (annual term)

O365 E1 £7.50 (from £6)
O365 E3 £20.20 (from £17.60)
O365 E5 £33.40 (from £30.80)
Microsoft 365 E3 £31.70 (from £28.10)

02

Enterprise (monthly term) 

O365 E1 £9 (from £7.20)
O365 E3 £24.24 (from £21.12)
O365 E5 £40.08 (from £36.98)
Microsoft 365 E3 £38.04 (from £33.72)

03

SMB (annual term)

M365 Business Basic £4.50 (from £3.80)
M365 Business Premium £16.60 (from £15.10)

04

SMB (monthly term)

M365 Business Basic £5.40 (from £4.56)
M365 Business Premium £19.92 (from £18.12)

05

Monthly Subscriptions

A 20% premium charge from July 2022

What should you do about the price increases?

Microsoft is raising the prices of its monthly subscriptions, however there are two ways to continue buying Microsoft products and avoid the increase.

1. If a license expires before March 2022, renew it and you’ll remain on Microsoft’s current pricing plan.

2. If your license expires after March 2022, sign up to Microsoft’s promotional pricing and you can use the NCE to lock in your subscription costs for up to 36 months (subject to availability on multi-year subscriptions). This will enable you to improve revenue predictability and reduce licensing complexity.

Support with Microsoft’s New Commerce Experience

BCN Group are a Microsoft Cloud Solution Provider (CSP) and Microsoft Gold Partner. Out team have the knowledge and expertise required to take your business’s journey with Microsoft to the next level.

Better still, contact us now and you can beat the price increase due on March 1st 2022. You can also benefit from all the available discounts.

We believe the New Commerce Experience provides an excellent opportunity to take stock of your current licences, and to compare your current costs with other Microsoft 365 subscriptions. Our IT consultants are ready to ensure your business needs are covered and get your business in the best possible financial position when the price increases comes into effect.

Get in contact with one of our Microsoft specialists today so your business is prepared for the Microsoft NCE Program.