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Microsoft NCE – What is it all about?!


What is the New Commerce Experience (NCE)?

Microsoft announced a change in how customers purchase and manage their licences through its Cloud Solution Provider (CSP) Program.

In January 2022, Microsoft launched the New Commerce Experience (NCE). This change will impact the way you purchase Microsoft 365 licences. But fear not. Microsoft has launched the NCE intending to reduce complexity and provide cost savings for long-term commitments, whilst introducing additional features to make CSP a comparable alternative to the longstanding Enterprise Agreement (EA).

But this wasn’t the only announcement from Microsoft. In addition to the NCE, there was a price increase that took effect on the 1st of March 2022 for the following licences:

  • Microsoft Business Basic
  • Microsoft 365 Business Premium
  • Office 365 E1, E3 and E5
  • Microsoft 365 E3

Monthly subscription

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 a 12-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 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.