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How the Microsoft New Commerce Experience (NCE) Benefits You

Changes in licensing are afoot at Microsoft and that means a more streamlined experience for you. So what is the Microsoft New Commerce Experience (NCE)? More importantly, what does it mean for you?

Download the datasheet for an at-a-glance summary of the changes.

Microsoft is in the third phase of a multi-stage, multi-year transformational journey that started in 2019 with the introduction of NCE for Azure hybrid cloud and was followed by the availability of perpetual software.

The latest is seat-based offers for Microsoft 365, Windows 365, Dynamics 365, and Power Platform. The goal is to deliver a more simplified engagement and purchasing experience that reduces licensing complexity and costs—for both customers and the managed it services providers, like Logicalis, who guide them along on their digital transformational journey.

But with change sometimes comes confusion, so we wanted to help clarify what NCE means for you.

Microsoft NCE: Greater flexibility, advanced scheduling

The more flexible NCE enables you to choose licensing options that better meet your business needs. You can mix and match subscriptions across your Microsoft products based on budgets, seasonality, workforce changes, business risk, and others. For example, you can leverage a monthly subscription for seasonal or part-time employees and the 12-month term or 36-month term for a more permanent or full-time workforce.    

There will also be more opportunities to try new products through free trials and rather than locking you into a subscription first.

Additionally, if you opt for auto-renew, you can plan and schedule renewals in advance so additional changes can be automatically made upon renewal, as well as align subscriptions to the same end data for easier renewal management. These advanced features free you from having to remember the end dates of multiple licenses and rushing to make changes before those licenses expire. This will assist you with providing more “coterminous” capabilities for cloud services from Microsoft.

Finally, Microsoft has taken significant steps to streamline its subscription structure—and provide more favorable pricing—so that it better reflects that of other suppliers. This now means that if you stop using the subscription or no action is taken at the end of the term, the subscription will auto-renew and you’ll be committed to full payment for the term. For those moving into contract renewals and wish to look for new options for product consumption; NCE may be a great fit.

The good news is that there’s now a seven calendar-day cancellation window with full or pro-rated refunds available. For example, if you cancel on Day 3 of the new term, you’ll receive a pro-rated refund for the term.

Looking down the road at Microsoft NCE

Of course, Microsoft has big plans for the future of NCE! Upcoming feature releases include the following offers and options (subject to change):

  • Three-year terms – Enjoy the locked-in price of longer 3-year terms for more seat-based products, in addition to Dynamics 365.
  • Home Use Program (HUP) – Enable employees to receive a discount on certain Microsoft 365 purchases and other consumer offers.
  • Multi-geo add-ons – Tap into the nearest Microsoft datacenter for faster performance (currently only available under EA) for the Microsoft 365 Suite.
  • Consumption-based billing – Rely on consumption-based billing for some seat-based offers, such as Microsoft 365.

New features and add-ons are being introduced all the time, so stay tuned!

Logicalis: Helping you navigate your Microsoft NCE journey

As a managed IT services provider, Logicalis can help you develop a cohesive renewal plan across all your Microsoft cloud products, enabling a more cost-efficient and streamlined cloud subscription experience. Plus, Logicalis can help you make changes and schedule automated renewals and cancellations in advance, freeing you from managing multiple subscriptions with varying terms and renewal dates—or paying for subscriptions you won’t use. Make changes such as:

  • Increasing or decreasing seats
  • Changing billing frequency
  • Changing certain subscription terms
  • Upgrading to a new offer within the same product category (for example, Microsoft 365 E3 to Microsoft 365 E5)
  • Partially upgrading to fewer seats (requires manual seat assignment)

Not sure which plan is best for you? Logicalis can work with you to outline the best option for your needs and budget. If you’re not sure where to start or if committing to a longer-term subscription poses a business risk, start with the monthly subscription. You can always cancel, increase or decrease the number of seats, or upgrade to the 12-month or 36-month options at the end of each month. See the full list of options and important dates

Let us incentivize you to NCE

To help sweeten the deal, Microsoft is offering current and new NCE commercial customers the opportunity to switch to NCE and receive 20% off monthly subscriptions now through June 30, 2022. Or take an additional 5% off the already discounted price of a 12-month.

Unless otherwise specified, there’s a 2,400-seat limit for the promotional pricing. For quantities in excess of 2,400 seats, the regular rate will go into effect above the 2,400 limit. Other exceptions include:

  • Subscriptions within their first month of purchase/renewal
  • Inactive subscriptions
  • Subscriptions with existing promotions
  • Trial subscriptions
  • Subscriptions with add-ons
  • Depreciated/Retired Subscriptions
  • Subscriptions for Government, Academic, or Non-Profit Customers
    [PLEASE NOTE: This is promotion is for commercial accounts only; hence the exclusion. If customers fall within this specific vertical, please contact us and we will verify any promotions you may fall into]

And if you have any questions about your Microsoft subscriptions or want to explore new Microsoft options for your organization, contact us.

Andrew Hertenstein is a Global Cloud Solution Architect at LogicalisUS.