Microsoft’s New Commerce Experience

Note: This information is based on announcements from Microsoft and may have changed since.

What’s Changing?

Microsoft currently has various licensing models and plans to significantly harmonize them. Microsoft calls this the ‘New Commerce Experience (NCE).’ This model will offer more flexibility to meet different usage needs and ensure consistent policies, agreements, and procedures for all of Microsoft’s cloud products and purchasing channels.

The NCE will initially apply only to agreements for business customers. NCE does not yet apply to the Not-for-Profit and Education channels, but we expect this to happen eventually.

Under a global Microsoft customer agreement, NCE will cover transactions for self-service (web direct), Enterprise, and CSP. As a result, all IT providers worldwide are required to transition their CSP billing of customer licenses to the New Commerce Experience.

What Changes Can You Expect Compared to the CSP Model?

• Standardized cancellation policy in line with existing non-CSP Microsoft license programs and subscription models, including Azure.
• New subscription period of one month, allowing you to adjust the number of users month by month according to your needs. This way, you can cancel licenses every month without further financial obligations.
• Flexibility to plan subscription changes before the renewal date, whether increasing or decreasing users.
• New option to lock in license rates by committing to a 36-month term (likely available only after July 1, 2022).

The NCE may raise some concerns, but our consultants and licensing specialists are ready to help you through this transition. They will guide you through the changes, explain what the NCE means for your existing subscriptions to Dynamics 365 and other Microsoft products, and explore options to ensure your business gets the most suitable licensing model.

Even if you currently purchase your Microsoft licenses from another Microsoft partner, we will gladly explain how NCE affects your licenses.

When Will These Changes Take Effect?

Between January 1, 2022, and February 28, 2022, you can:

• Cancel and renew existing subscriptions under the new NCE terms.
• Renew subscriptions under the current CSP model.

There is an early adopter promotion for NCE for orders placed between January and June 2022, offering savings on monthly and annual term orders.

Subscriptions with a 36-month term will not be immediately available in January; they are expected to be offered from July 2022.

Important to Know:

• Until February 28, 2022, you can renew or purchase subscriptions under the terms of the existing CSP model.
• February 2022 is the last month in which existing customers can renew their subscriptions under the old CSP model and the current billing terms for Dynamics 365, Microsoft 365, Office 365, and the Power Platform. To delay this change as long as possible, organizations can opt to cancel their agreement in February 2022 and immediately reorder under the same CSP terms for another 12 months.
• From March 1, 2023, all customer agreements will be under NCE terms.
• Prices for Microsoft 365 will change on March 1; those for Dynamics 365 will change on July 1.

What is Microsoft Changing in the Cancellation Policy?

Voor de nieuwe overeenkomst met een looptijd van 12 maanden of van 36 maanden zal Microsoft alle annuleringen voor de volledige resterende looptijd in rekening brengen. Als je een abonnement afsluit, heb je 72 uur om deze zonder kosten te annuleren (gebaseerd op de UTC-zone). Na deze annuleringsperiode van 72 uur is er bij annuleringen geen pro-rata restitutie voor de niet-verlopen termijn.

Gedurende de looptijd van een NCE-overeenkomst kan jij extra licenties toevoegen, maar abonnementen kun jij alleen beëindigen aan het einde van de periode van 12 of 36 maanden. Met andere woorden: Microsoft houdt jou aan de afgesproken periode.

Indien een organisatie licenties afneemt via NCE, kun jij de facturering pas aan een andere partner overdragen als de overeenkomst afloopt.

How Can You Reduce the Number of Subscriptions Month-to-Month?

Within the NCE, Microsoft offers a one-month subscription period, allowing you to decrease or increase the number of licenses each month. However, note that a one-month subscription is significantly more expensive than a yearly subscription—up to 20% more on an annual basis.

Unlike 12- or 36-month subscriptions, prices for the one-month term are fixed for only one month.

Can You Purchase Subscriptions in a Combination of Terms: 1 Month, 12 Months, and 36 Months?

Yes, within the NCE, Microsoft allows customers to combine licenses. This provides flexibility to support scenarios for permanent and temporary employees and gives more control if an organization wants to reserve some of its licenses that can be reduced or canceled within a month.

For example, an organization might choose to keep 85% of its Dynamics 365 licenses on a 12-month agreement. The remaining 15% can be held for a one-month term, allowing the total number of subscriptions to be reduced within this threshold if necessary.

Summary of NCE Subscription Terms

An overview of the subscription terms for Dynamics 365, Power Platform, Microsoft 365, and Office 365 licenses.

Questions?

Do you have a question or want to learn more about NCE? Click the button below and fill out the form. We will contact you within 24 hours.