Microsoft New Commerce Experience
Microsoft has recently announced a change in how customers purchase and manage their licences through their Cloud Solution Provider (CSP) Program.
In January 2022, Microsoft is launching New Commerce Experience (NCE). This change will impact the way you purchase Microsoft 365 licences.
However, 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 commercial licences:
- Microsoft Business Basic
- Microsoft 365 Business Premium
- Office 365 E1, E3 and E5
- Microsoft 365 E5
Microsoft is offering a 5% discount for annual Microsoft 365 commitment, available until the end of March 2022.
However, bearing in mind there is a price increase coming on 1st March 2022, committing to your licences before the end of February will not only allow you to benefit from the discount, but also lock your price for 12 months AND avoid the price increase on 1st March.
Read on to find out more about New Commerce, or download our FAQ document here.
When does New Commerce launch?
Here are some of the key dates to be aware of:
10th January 2022 – The New Commerce Experience (NCE) launches, and Microsoft will release their 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 licences 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. The monthly subscription will give you the flexible easy on/easy off seat counts that the legacy CSP program has provided. HOWEVER, this will be priced at 20% more than the Annual subscription.
Microsoft have also launched a 36 month subscription, allowing you to save on any future cost increase by committing to the coming years. The 36 month option will be the cheapest, but this will offer the least flexibility. For example, you cannot decrease seats until the end of the subscription term; after the 72 hour cancellation period you will continue to be billed until the end of the 36 month agreement.
With the NCE you will have the ability to purchase your Microsoft 365 licences 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 licences plans and seat count. This subscription does come at a 20% price increase across all licence plans.
12 month subscription
Through the NCE, you’ll have the opportunity to commit to your licences through a12 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 a 3 year pricing for longer term licencing 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 should you do about NCE?
It is recommended that you speak to 3C Technology about moving to New Commerce 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 licences you have to make sure you are not paying for licences you don’t need, or paying for features you’re not using.
We can work with your business to carry out a licence review with you, and advise which licences you may wish to have on annual and monthly commitments (you can mix and match the subscription terms) in order to maximise your savings.