Arraya Insights | February 28, 2022
Microsoft’s New Commerce Experience (NCE) is a multi-stage, multi-year transformational journey to deliver a simplified engagement experience.
The goal of the NCE is to make it easier to transact with Microsoft and drive cloud adoption for businesses. The Cloud Solution Provider (CSP) program is the primary foundation for the NCE.
While the NCE was initially launched in 2019, it’s now entering the third phase of its transformational journey in 2022.
This latest phase will provide customers with tools for easier adoption of new products and add-ons, in addition to new term commitment options that provide greater choice and flexibility.
As Microsoft moves into the next phase of the NCE, here’s what you need to know:
- Important Dates:
March 1, 2022: All new and renewing subscriptions will be purchased through NCE from this date forward.
October 1, 2022: All customers will be required to purchase through NCE.
- NCE Expands to Additional Solutions
Previously, NCE was only available to Azure. NCE has now expanded to Microsoft 365, Dynamics 365, Power Platform, and Windows 365.
- New, “Seat-Based” Offers in the CSP
With the expansion to Microsoft 365, Dynamics 365, Power Platform, and Windows 365, these subscriptions will use the new commercial “seat-based” offers within the CSP program. This is a step towards Microsoft’s effort to create a more unified experience.
The seat-based offers will provide partners with greater standardization of offers and terms and give customers more choice and flexibility in how and where they purchase.
- Price Changes
Due to the increased value Microsoft has delivered to customers over the last decade, there will be an increase in CSP pricing.
The following licenses will be affected:
- Microsoft 365 Business Basic: increase from $5 per user to $6 per user
- Microsoft 365 Business Premium: increase from $20 to $22
- Office 365 E1: increase from $8 to $10
- Office 365 E3: increase from $20 to $23
- Office 365 E5: increase from $35 to $38
- Microsoft 365 E3: increase from $32 to $36
Until March 1, 2022, Microsoft will be running a promotion that allows month-to-month CSP customers to agree to a 12-month commitment and avoid the price increase on the licensing listed above (for that 12-month term).
The New Commerce Experience comes with a change to CSP month-to-month customers with a 20% premium in cost for licenses that remain on a month-to-month subscription. The new 12- and 36- month term commitment options will allow you to avoid the 20% premium if you agree to an annual commitment.
- Say Goodbye to Open Licensing
Microsoft has moved away from Open License transactions to opt for cloud and hybrid licensing options instead.
As of January 1, 2022, the Cloud Solution Provider program is now the primary partner sales motion for all SMBs as a part of Microsoft’s effort to offer fully managed services and highly tailored solutions to customers. Commercial customers are no longer able to buy new or renew software licenses or online services through the Open License program.
The NCE will continue to invest in the CSP to help partners accelerate business growth, simplify licensing, and provide customers with more preferable, consistent, and flexible purchasing options.
Next Steps: Prepare for the Price Increase & Maximize Your Investment in Microsoft 365
Microsoft’s promotion that allows month-to-month CSP customers to agree to a 12-month commitment and avoid the price increase (for that 12-month period) is going to end soon.
This promotion ends March 1st. This is a great option for those who have a consistent user count as license counts can be increased at any time to scale your business, but downgrades will not be permitted.
At Arraya, we have a variety of Professional Service offerings that can help maximize your investment into Microsoft 365 and ensure that you’re getting the most out of your subscription.
Whether you’re looking to take advantage of the 12-month commitment promotion or discuss your subscription options, our Arraya experts can help. Contact us today to start a conversation.
Visit https://www.arrayasolutions.com/contact-us/ to connect with our team now.
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