Microsoft New Commerce Experience (NCE)

What is the New Commerce Experience (NCE)?

Microsoft has recently announced a change in how customers purchase and manage their licenses through their Cloud Solution Provider (CSP) Program. 

In January 2022, Microsoft launched New Commerce Experience (NCE). This change will impact the way you purchase Microsoft 365 licenses. 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 licenses:

Microsoft Business Basic

Microsoft 365 Business Premium

Office 365 E1, E3 and E5

Microsoft 365 E3

What is the biggest difference between the NCE and the Cloud Solution Provider program?

The licenses that you purchase through the NCE will have a 12-month term associated with them, which can be paid up-front or monthly. For example, if your company buys licenses for Microsoft 365 and later realizes that only two are necessary, you are still required to pay for those licenses until the end of 12 months.

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 its 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 licenses 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	12 Month Subscription	36 Month Subscription
Payment Option	Monthly	Monthly and Annually	Monthly, Annually and Prepay
Cancellation / Adjustment Window	72 hrs	72 hrs	72 hrs
Seat Change	Increase always. Decrease within cancellation/adjustment window	Increase always. Decrease within cancellation/adjustment window	Increase always. Decrease within cancellation/adjustment window
Pricing	20% increase over 12-month subscription	Standard	Standard
Benefits	Flexible	Cost Saving and price locking	Cost saving and price locking longer term

Monthly subscription

With the NCE you will have the ability to purchase your Microsoft 365 licenses 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 licenses plans and seat count. This subscription does come at a 20% price increase across all license plans.  

12-month subscription

Through the NCE, you’ll have the opportunity to commit to your licenses through a 12-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 3-year pricing for longer-term licensing 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 is the 72-hour rule?

Microsoft is only allowing customers to scale down their licenses within the first 72 hours after the purchase. Afterward, you are only able to scale up, and you will be locked in to pay those licenses for the entire year.

Under the current CSP model, if you were to buy licenses today and later realize you need to decrease the seats, you can do that at any time. Now under the NCE, there is a 72-hour mark to make any necessary changes.

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 licenses you have to make sure you are not paying for licenses you don’t need or paying a premium for features you’re not using. We have a variety of tools to do a license optimization review with you and can even advise which licenses you may want an annual and monthly commit on to maximize your savings. Speak to us about our license audit options.

Partner with a Microsoft 365 expert

As one of Microsoft’s closest partners, and over 8 Microsoft Competencies, we’re here to help you navigate the New Commerce Experience. We want to ensure you’re getting the most from your licenses and leverage the licensing discounts available. Sound good? Simply get in touch to speak with one of our experts.

Already a customer of ours? Drop us an email at [email protected] to discuss the best options for your licensing.