What Is Microsoft’s New Commerce Experience (NCE)?
In the fall of 2021, Microsoft announced changes to its licensing and subscription model as they move to end their Cloud Service Provider (CSP) program and launch the New Commerce Experience (NCE), which has been active as of January 1st, 2022. The New Commerce Experience (NCE) will help TREYSTA with the intricacies that come with Microsoft licensing.
Microsoft, with the release of NCE, will begin a monthly subscription option to correlate with any current annual subscriptions. This will give your business the flexibility to add or decrease licenses on a short-term basis as needed. Monthly subscriptions will be 20% more expensive than the annual licenses but will come with adaptability which may outweigh any additional cost. Please continue below for more information regarding monthly subscriptions.
Those who already know their yearly licensing needs, NCE will have 12- and 36-month subscriptions as two smart cost-saving options. Both subscriptions will allow your business to lock in a price for a standard term, which will give protection against any future price increase, while also allowing for either a monthly or annual payment schedule for your budgeting needs. Both subscriptions will allow for seat-count increases but will not include any decreases that may be needed.
How Does This Affect Your Business?
Beginning on March 1st, 2022, there will be a price increase to the following Microsoft licenses:
Enterprise:
- Office 365 E1: $10 (from $8)
- Office 365 E3: $23 (from $20)
- Office 365 E5: $38 (from $32)
- Microsoft 365 E3: $36 (from $32)
SMB:
- Microsoft 365 Business Basic: $6 (from $5)
- Microsoft 365 Business Premium: $22 (from $20)
Microsoft has been preparing their users for an additional 20% premium to licensing costs if they want to remain on a month-to-month term basis with licensing. Per CNBC.com, “Between the months of January and June, Microsoft will be charging the same price for monthly and annual offers, the company has said. After that, the monthly increase begins. For subscriptions to its Microsoft 365 bundles, there will be an increase between 8.5% to 20% per user, subject to the level of service.”
This news is ever changing as Microsoft has recently pushed this 20% premium start date to June 30, 2022 (instead of the previous date of March 10, 2022). This will give TREYSTA three additional months before subscriptions must be renewed in the New Commerce Experience (NCE). However, the ability to place new orders on the existing Cloud Services Provider (CSP) platform will end on March 10, 2022.
TREYSTA Is Here For You And Your Business
As we move closer to July, TREYSA will provide more information regarding the current situation. As a Microsoft Indirect Reseller, and Silver Partner, TREYSTA is here to help you navigate the New Commerce Experience (NCE).
We greatly appreciate your continued business and support through this time of growth and change. If you have any further questions or concerns regarding this price increase, please do not hesitate to reach out. Our team is more than happy to discuss this situation with you.
Learn more about Microsoft’s New Commerce Experience (NCE) price increase.
