There’s a new Microsoft licensing plan called the New Commerce Experience. Here is everything you need to know.
Microsoft has launched a new licensing program designed to reduce licensing complexity and cost, as well as to provide flexibility to support a range of purchasing scenarios. The program is called the New Commerce Experience (NCE) and comprises both subscription licensing and the way Microsoft invoices customers. The NCE is being offered for Microsoft 365, Dynamics 365, Windows 365, and Power Platform licenses beginning January 2022.
What this means for you:
1. Subscription Options:
Customers can now choose between 1 month, 12 months, or 36 months subscription options.
With the NCE you can purchase your Microsoft 365 or Dynamics 365 Business Central licenses on a monthly basis with no annual commitment. This subscription provides flexibility for customers who need to make monthly changes to their Microsoft 365, Office 365 or Business Central licenses plans and seat count. The cost for this subscription is 20% higher than the annual or three-year subscription but, in exchange for the increased cost, you get the ongoing option to reduce license counts at will, which the annual plans do not permit.
With this NCE option, you can purchase your licenses as a 12-month subscription and have the option to be billed on a monthly or annual basis. As well, with the 12-month subscription your pricing will be locked in for the entire term allowing you to protect yourself from potential future cost increases during that time. This subscription will allow you to increase but not decrease the seat count.
Microsoft has introduced a Multi-Year Pricing to the NCE, allowing you to secure a 3-year pricing for longer licensing term commitments. With this subscription, you will have the option to be billed monthly, annually, or upfront. This subscription will allow you to increase but not decrease the seat count.
Once a subscription has been activated, you only have 72 hours from activation to cancel or reduce the license count. After that, no reductions or cancellations are permitted. You will have to wait until your renewal date (depending on the subscription term: 1 month, 12 months or 36 months) to reduce license counts.
3. Adding & Subtracting Seats:
Like cancellations, seat counts on a new commerce subscription can be reduced within the first 72 hours. However, if there is a midterm order of additional seats, you will also have a 72-hour window to reduce that back to the original number of seats. Of course, upgrades to “larger packages” are allowed at any time.
4. Seat Pricing:
If you want to add seats, they will be priced at the original subscription purchase price (not the current price). Overall, this means that the price for additional seats will always be locked in at the beginning of the term.
Please give us a call if you would like to better understand your new license costs and options. We will gladly answer any questions you have about these Microsoft pricing and program changes.