The Microsoft New Commerce Experience explained

If you didn’t already know Microsoft announced that its Cloud Solution Provider program would be evolving to meet the ever-changing needs of businesses both big and small. This accumulated in the announcement of Microsoft’s New Commerce Experience (NCE). 

So, what does this mean for businesses? 

The NCE will change the way in which you purchase Microsoft online services such as Dynamics 365, Microsoft 365, Windows 365 and the Power Platform. The whole purpose of this is to reduce the complexities of licensing and deliver reduced costs for those committing to Microsoft in the long term whilst at the same time providing additional features to make the CSP comparable against the Enterprise versions. 

So, what subscription options are available for the New Commerce Experience? 

One of the major changes seen regarding the NCE is the fact that new monthly subscriptions will be run alongside existing annual subscriptions. As of March 2022, a new 36-month subscription was launched. 

Monthly subscriptions 

The way the NCE is set up allows customers to consume online services on a monthly basis without requiring them to sign up to an annual agreement. This gives those customers that need to make regular adjustments the flexibility they need on a monthly basis* based on the number of users and plans. 

However, this does come at a cost of 20% more across all online service plans than you would be on an annual agreement. 

 *Licenses can be decreased or cancelled within 72 hours of being purchased or alternatively at the end of the monthly term. 

12-month subscription 

This offering via NCE allows customers the chance to consume online services on an annual basis. The difference when compared to the legacy CSP model customers on a 12-month subscription is the fact that you will now have the option to either pay monthly or annually. 

Better still, the pricing will remain the same for the duration of the term which can help customers to save money and repel any price increases during that term. It is important to note that you can add more users to the 12-month subscription but are unable to reduce the number of users. 

36-month subscription available for Microsoft 365 and Dynamics 365 

The multi-year pricing will enable customers to secure 3-year pricing upfront for a long-term licensing agreement. Through this term, you will be allowed to choose to be billed monthly, annually or all of it up front. As with the other agreements above, you can only add users not remove them during the term. 

So, what else do I get included with the new commerce experience? 

Multi-Geo 

This feature enables businesses to both provision and store data at rest in a number of geo-locations that they have selected in order to meet local data residency rules. You will find that this option is not available for those on Enterprise level agreements. 

Furthermore, this will help businesses that are unable to get Enterprise level agreements the chance to secure multi-geo pricing. 

Home Use Program (HUP) 

This feature will enable employees of businesses that use online services via CSP to get a 30% discount if they buy a Microsoft 365 subscription. 

Hybrid Use Benefits 

HUB will make it easier for businesses to take advantage of their Microsoft investments made via the CSP program. 

Next Steps? 

As well as the above already in operation, Microsoft revealed that as of April 1st 2023 it would be increasing prices again on its online services. For more information regarding the NCE or the upcoming price increases please contact your Advantage Account Manager or if you aren’t a customer of Advantage please call us directly so we can help you to plan for the above changes. 

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