Microsoft's Switch from CSP to NCE: What you Need to Know
Microsoft recently made an announcement regarding New Commerce for CSP seat-based offers. New Commerce Experience, or NCE, introduces several program changes to the existing CSP program.
Luckily, we have your back and are going to walk you through it all!
What You Need to Know
Microsoft will introduce New Commerce Experience (NCE) for seat-based offers including Microsoft 365, Dynamics 365, Power Platform and Windows 365. This also includes the following changes:
- New Pricing goes into effect on March 1, 2022.
- Annual term subscriptions that will offer price stability
- Premium-priced monthly term subscriptions that offer true flexibility to increase & decrease monthly licenses
- Mid-term subscription upgrades with automatic seat assignment
You can begin transitioning your existing subscription to NCE immediately, selecting either annual or monthly term subscriptions. Enjoy the option to mix and match subscription terms, which will help provide long-term price stability with monthly flexibility.
What You Can Do
Start by getting insights into your current situation and future needs. Speak with your CR-T contact to understand what options are available to help mitigate these changes.
A more in-depth analysis may be beneficial depending on the complexity of your situation. CR-T will provide visibility and support by helping you to see the cost savings and value in the promotions. That way, you ensure you have a right-sized, technology-led and time-appropriate plan.
Why?
- Office 365 has grown to over 300 million commercial paid seats.
- There has been no substantive price update (increase) since Office 365 was launched.
- This does not include localized FX fixes/adjustments or individual component price changes (i.e., August ‘21 EMS price increase).
- The new price reflects the increased value delivered to customers
- Microsoft has added 24 apps to O365 since its launch.
- These apps include Microsoft Teams, Power Apps, Power BI, Power Automate, Stream, Planner, Visio, OneDrive, Yammer, and Whiteboard.
- New features may include:
- Comms & Collaborations
- Security & Compliance
- AI & Automation
What this Means for M365, D365 and Power Platform Per-User Subscriptions on NCE
Greater Sales Agility and Customer Commitment
- Enforced cancellation policy
- Pricing benefits for annual-term subscriptions that lock in pricing for the entire term
- Multi-year plans for D365
- Increased offer and subscription upgrade availability
Operational Efficiency and Cost Savings
- Enhanced provisioning capabilities and subscription pause for dunning
- Improved subscription-management capabilities
- Easier price list and reconciliation file processing
- Automated subscription changes at renewal
More Choices for Customers
- Premium-priced monthly term subscription that allows cancellation or seat-count reduction as needed
- New Windows 365 (monthly term only, at annual term pricing)
- Easier adoption of new products and add-ons available separately
- Consumption-based billing for telco offers
When and How Much?
Microsoft will change its pricing for Microsoft 365 licenses beginning March 1, 2022. We want to make sure you understand what this means for your business and what you can do to be prepared. Please contact CR-T at 801-222-0930, or speak directly with your Technical Sales Consultant for further information.
On March 1st, 2022, Microsoft will update the pricing for the following commercial products:
Product | Price Change – $ | Price Increase – % |
Microsoft 365 Business Basic | From $5 to $6 per user | 20% |
Microsoft 365 Business Premium | From $20 to $22 | 10% |
Office 365 E1 | From $8 to $10 | 25% |
Office 365 E3 | From $20 to $23 | 15% |
Office 365 E5 | From $35 to $38 | 8.57% |
Microsoft 365 E3 | From $32 to $36 | 12.50% |
Learn more with the following Microsoft timeline in this PDF:
1Additional information can be found on Microsoft’s page at: https://www.microsoft.com/en-us/microsoft-365/blog/2021/08/19/new-pricing-for-microsoft-365/
