To further adapt to today’s ever-changing technology and provide a more seamless experience for clients and users, Microsoft recently announced the evolution of its Cloud Solution Provider Program (CSP), the New Commerce Experience (NCE). The NCE is part of a transformational journey that’s elevating how clients do business with Microsoft, bringing clients more flexibility to mix and match Microsoft cloud subscriptions. Beginning this month, Microsoft will transition seat-based cloud offers to the NCE for Microsoft 365, Dynamics 365, Power Platform, and Windows 365.
So, what exactly does the availability of the NCE mean for you and your organization? We’ve compiled some key updates and changes for you to be aware of with the transition to the platform soon to be underway.
Organizations in need of license flexibility or month-to-month options will be able to select monthly commitment terms for a premium price (+20% starting July 1, 2022). In contrast, organizations that commit to annual terms will lock in their price annually. Annual commitments have the option to pay upfront or continue to pay monthly for the 1 yr. term. Following the move to the NCE, refunds will no longer be granted for decreasing license quantities or canceling licenses during the term.
Here are a few highlights to the subscription option changes with the NCE:
- New subscription term options Monthly, Annual (Paid Monthly or Upfront), 36-Month
- New monthly-term offers with a 20% price premium starting July 1, 2022.
- The cancelation period is 3 days, including the day of purchase. This means that if a partner orders at 11:59 p.m., that will count as the first day in the cancellation period.
- Seat changes may only increase, you are no longer able to decrease your user count until the renewal date.
With the rollout of the NCE, Microsoft also announced pricing increases for commercial users that are set to go into effect on March 1, 2022. These changes will be made globally with pricing adjustments to accommodate local markets in certain regions. The summary of the new pricing structure per user is as follows:
Migrate your current Microsoft 365 subscriptions to the new annual Microsoft NCE model before March 31st, 2022 and receive a 5% discount on all current licenses.
We will continue to monitor the details of the transition to Microsoft’s NCE and will keep you updated as more information is shared. If you already partner with BerganKDV for your technology services and are impacted by this change, our team has already contacted you with next steps with this transition. If you aren’t one of our current clients but have additional questions regarding the NCE, our team would be happy to assist. Contact us today to learn more about this transition or to hear about what technology solutions we can offer your organization.