Microsoft has been striving to bring together the various channels via which a customer can purchase Microsoft services, thereby simplifying the customer's purchasing path and reducing the complexity of licencing.

To accomplish this, Microsoft developed a new business model for Microsoft Azure in 2019 called the New Commerce Experience (NCE). They'll also be expanding NCE to incorporate Microsoft 365, Dynamics 365, and Power Platform across their seat-based subscription services starting in January 2022. Over the following six months, the existing deal will be phased in.

As your trusted Microsoft Partner, Redgate IT is here to help you to understand the impact that NCE will have on how you procure Microsoft 365 subscriptions and licenses. So, let’s start by understanding what NCE actually is.

What is the NCE?

The New Commerce Experience (NCE) is the 'per seat' subscription model for Microsoft 365, Dynamics 365, and Power Platform subscriptions, and it's the newest in Microsoft's Cloud Service Provider (CSP) program's progression.

Microsoft is offering a one-month subscription SKU to serve customers who have more fluid requirements around Microsoft 365 (for example, firms with seasonal workers may need numerous Microsoft 365 licences for a short period). This subscription will have a one-month duration, which fits well with enterprises that have sporadic subscription requirements.

Customers can commit to a subscription and number of licences for either a 12-month or 36-month period for a more predictable user base with more assurance around a particular subscription type and quantity of licences. The customer will receive a unit price discount compared to the equivalent one-month subscription SKUs in exchange for this commitment.

Customers can also mix and match the various subscription plans. For example, if a company employs 50 full-time employees, it can purchase 50 Microsoft 365 E3 licences for 12 months and receive the best commercial terms. However, if the same company hires ten more seasonal employees for a month, they can use a one-month SKU subscription to licence them. Then, when they no longer require an ongoing financial commitment, they can cancel their subscriptions at the end of the month.

Dates to Note

01 Jan 2022
NCE for Modern Workplace and Dynamics will reach general availability, allowing organisations to purchase any new subscription under the current Commerce model or the NCE.

01 Mar 2022
New subscriptions will be supplied as NCE only. Microsoft will also raise the price of most Microsoft 365 SKUs by 15-20% in March.

01 Jul 2022
All subscriptions for Modern Workplace and Dynamics must be purchased on the NCE Platform, and any subscriptions with a renewal date after that date will be renewed through NCE.

How Does This Affect You?

The launch of NCE will alter the way CSP customers buy M365 subscriptions. As a result, it will be even more critical for consumers to get their subscription type and licence amount correct from the beginning of the agreement. Redgate IT can help with this.

We'll provide a FREE consultation to help you match your user and business needs with the optimal Microsoft 365 subscription SKU. Based on the characteristics of your workforce and the mix of temporary and full-time users, we can also recommend the appropriate subscription type (one month, 12-month, 36-month).

 To Sum Up

• From January 2022, CSP customers will subscribe to a new subscription model called NCE.

• Customers will be required to commit to a specific Microsoft 365 subscription type and a set number of licences for the subscription period by NCE.

• One-month, 12-month, and 36-month subscriptions will be available.

• Customers can raise their licence count during their subscription period, but they cannot decrease it*.

• The one-month SKU subscription is preferable for customers who need the flexibility to reduce their licence quantity.

• Annual and multi-year subscribers receive a discount.

* Only during the first 72 hours after making the initial modification can users make a subscription change (cancellation or reduction in the number of licences). For example, if you supply 100 more E3 licences but later realise you only needed ten, you can fix the error by modifying within 72 hours.

How can Redgate IT help?

With so much change and the launch of the new NCE agreement, now is the ideal moment to examine your Microsoft 365 estate and requirements to ensure that you get the most out of your current subscriptions and services. In addition, we can offer you a free health check of your Microsoft 365 tenant or a discussion with one of our experts to assist you.

Our Free Health Check looks at your usage statistics to determine how many licences are underutilised or inactive, so you're fully informed about your environment before implementing any adjustments. Redeem this offer now!

got questions?
check out our FAQs below or, get in touch!

What are the new Microsoft 365 Subscriptions' terms?
The periods are one month, 12 months, or 36 months, with a one-month term carrying a 20% price premium. Each customer's Microsoft 365 subscriptions will be aligned with a Redgate IT contract. If a customer has three different Microsoft 365 subscriptions, there will be three contracts.

Is it possible for a consumer to cancel their subscription in the middle of the term?
Yes, but any outstanding charges related to that term will be borne by the consumer.

Is it possible for a client to cancel their membership in the middle of it?
Customers can change subscriptions if there is an upgrade path between their current subscription and the one they want to shift to. On the other hand, the consumer will be unable to change their subscription if there is no upgrade option available.

Is it possible to fix this if a subscription was created incorrectly or with the incorrect amount of licences?
Yes. Customers have a 72-hour window in which to make adjustments to their orders. For example, if a customer orders 100 x E3 licences on Tuesday at 1700 hours (GMT) but later realises they only need 10 x E3 licences, they have until 1659 hours (GMT) on Friday to alter their order.

Is it possible to reactivate a subscription that was accidentally cancelled?
No. A cancelled subscription cannot be reactivated. It would be necessary to purchase a new subscription with a new term.

My current membership expires before the 1st of July, 2022.
If your current subscription expires before the 1st of July, 2022, you have the option of renewing it for another 12-month term or purchasing an NCE subscription.

My current membership expires after the 1st of July, 2022.
If your current subscription expires after the 1st of July, 2022, your renewal will be based on NCE subscriptions, and the NCE restrictions will apply.