Last August, Microsoft announced its New Commerce Experience (NCE).
If you use Microsoft cloud services, the changes may affect you. We've broken down exactly what Microsoft announced, the key dates you need to remember and how to prepare for the next steps.
What is Microsoft's NCE?
The NCE is an adjustment to the Cloud Solution Provider (CSP) programme - the platform that companies like boxxe use to offer Microsoft cloud services. It aims to make seat-based cloud services like Microsoft 365, Dynamics 365, Windows 365 and Power Platform more accessible.
First, billing cycles will align with the start of each calendar month.
Next, you can now have more options for accessing Microsoft services. Here's how each option compares:
Best for organisations that prioritise flexibility
Monthly subscriptions will still be available, and it's still the best choice if you need the flexibility to change your seat count and plans on a month-by-month basis. However, this flexibility will now come with a +20% price premium. To help ease the transition, Microsoft is offering a discounted rate for monthly subscriptions until 30th June 2021 (contact us to learn more).
Best for organisations that prioritise stability
An annual subscription still offers more control than today, giving you the option to be billed either monthly or annually. Even better, fixed subscription costs for 12-months provides extra protection against further price increases within your term. Again, Microsoft is offering a discounted rate on all annual subscriptions under the NCE, but this will expire on 31st March 2022.
Despite being announced last August, Microsoft's NCE's rollout will be staggered throughout 2022. Here are the key dates you should know:
- 10th January 2022: General availability opened
- 10th March 2022: New customers can join NCE only, and M365 pricing changes
- 31st March 2022: The discounted rate for early adoption of annual subscriptions under the NCE expire
- 30th June 2022: Existing customers must transition to NCE, and the discounted rate for early adopters of monthly subscriptions under the NCE expire.
What you need to do next
Contact your boxxe account manager to discuss the impact of NCE on your current licenses, and your options moving forwards. Remember, discounted rates are available throughout Q1 and Q2 2022 - get in touch with us now if you want to take advantage. Together with our team of Microsoft specialists, we'll make the transition to Microsoft's new licensing model as easy as possible.
Will legacy and new commerce experiences coexist, and if so, for how long?
Legacy and new commerce subscriptions will both be available for some time, but Microsoft hasn't confirmed exactly how long this will continue yet.
How do I migrate to the new commerce experience for Microsoft 365, Dynamics 365 and Power Platform?
Between our team of Microsoft experts and your account manager, we'll work closely with you to help set migration expectations, understand migration impacts and provide readiness training.
Can I combine annual and monthly terms – for example, could I have a core set of users on an annual subscription and set seasonal users up on the monthly term?
Yes. If that's what's best for your organisation, you could combine an annual Microsoft cloud service subscription for core seats, and use a monthly subscription to manage seasonal users.
Can I increase or reduce seat counts on a subscription in the middle of the term in NCE?
The seat count on a subscription can be increased during the middle of an annual term. However, if more than 72 hours have elapsed since the subscription order was placed or renewed, the seat count cannot be decreased until next renewal of the subscription.