Recently Microsoft has announced a change in how customers can purchase and manage their licenses through their Cloud Solution Provider (CSP) Program.
Microsoft launched their New Commerce Experience (NCE) in January of 2022. The NCE impacts the way you purchase Microsoft 365 licenses. The launch of the NCE is intended to make licensing less complex and provide cost savings for long term commitments by Microsoft.
When did NCE Launch?
Here are some key dates to be aware of:
January 10, 2022 - launch of the New Commerce Experience
March 1, 2022 - price increases for select Office 365 and Microsoft 365 plans.
March 10, 2022 - All new Office 365, Microsoft 365, and Dynamics licenses must be purchased through NCE
July 1, 2022: All CSP subscriptions must be renewed through NCE (On or after July 1, on the end date of your current CSP 12-month subscription, you must renew it on NCE terms). Clients need to move to NCE or penalties will be applied.
What Are Your Options?
Take no action: Price increases for certain plans will take effect on March 1 2022. In October of 2022 clients you will need to move to the NCE or pay penalties.
Move to the NCE before March 1: You can move to NCE before March 1 on an annual commitment and have your pricing locked in at today's rate as well as defer price increase for the duration of your 1 year commitment.
Sign an Annual Commitment: You may choose to stay on an annual commitment for all of your licensing while knowing that if you need less licensing in the future you can only reduce during your anniversary date.
Mix and Match Annual and Monthly Plans: You can choose to mix and match 1 year and monthly commitments to account for fluctuating seat counts. For example if you have 50 users average but decrease by 5 regularly, you can purchase 45 seats on an annual commitment and 5 on a monthly commitment, allowing you to add or remove those 5 as needed throughout the year. Note that there is a 20% price increase on all monthly plans but you will have more flexibility.
Microsoft will continue to offer the ability to purchase Microsoft 365 licenses on a monthly basis without an annual commitment, however this option does come at a 20% price increase across all license plans. You can use this option alone or in combination with yearly subscriptions to account for monthly seat count changes.
Need help or have questions about the NCE? We're here to help. Reach out to your CRM or contact us here.