The New Commerce Experience (NCE) from Microsoft explained
The New Commerce Experience (NCE) is Microsoft’s subscription model introduced in March 2022 enabling resellers/partners to have access to tools that enabled them to easily manage and simplify their customers’ subscriptions from the existing Cloud Solution Provider (CSP) experience.
Microsoft implemented the NCE unto the market to add flexibility through subscription types and the ability to mix and match via NCE.
The new NCE introduced a change in the way and terms licensing is sold compared to how it was under the original Cloud Solution Provider (CSP) Program.
In het kort
What are the reasons for the introduction of the NCE?
- To bring to the licenses and software space a competitive, cost-effective alternative to the Enterprise Agreement (EA).
- NCE brings with it reduced complexity and discounted terms on long-term commitments.
- Also to introduce new features designed to make sure you get the most out of your purchase.
- Limit the option to freely increase and decrease license count for a set period or even cancel throughout the term of the subscription.
- Long-term commitments that cannot be undone mid-subscription with the NCE.
Microsoft using a discount bait to get customers to accept the NCE decided that, until the end of March 2022, it was offering a 5% discount on annual Microsoft 365 commitments. Users who took advantage of this discount avoided price increases by changing over to NCE before the end of March 2022.
What factors were considered with/for the pricing models in the NCE?
NCE with the new pricing models for the licenses took the following into account:
- Monthly conditions
- What the annual commitment monthly invoicing is
- What the annual commitment annual invoicing looks like
- Longer terms available for some licenses.
Subscription management plans in the NCE
On the NCE subscription, Service Providers and users may acquire for example a Microsoft 365 license on a monthly basis without any annual commitment. This allows for a change in flexibility for license users and sellers who make regular changes to their Office 365 or Microsoft 365 license plans or user accounts.
12 Month Plans
There is a 12-month subscription option for NCE users who may want to commit their license through this period. Comparing this to the previous CSP structure, customers who sign up to this 1-year subscription may choose to be billed on either a monthly or annual basis. This 12-month subscription ensures the pricing remains unchanged for the entire duration. Users are able to avoid price increases in that subscription period. However, this subscription permits the user(s) to increase their user count, but they cannot decrease it.
Why take advantage of the NCE as an organization?
Microsoft has positioned the NCE to bring standardization in all their products and services terms to allow for a simplified and streamlined acquisition that will give your organization an experience.
The New Commerce Experience will also enable an accelerated cloud journey with other benefits like;
- Gaining control and predicting your budget through invoices that provide reliable insight into cloud expenditure.
- Also, predictability in finance ensures organizations can invest in advanced computing power and access the optimal technology for their needs without breaking the bank!
Microsoft Cloud price changes in 2023 NCE
Rates as of March 1, 2023 Microsoft offer fixed and flexible licenses. If you fix the Microsoft 365 licenses for 1 year, you save 20% in costs. If you want to use a flexible license, you pay the normal rates. Even if you pay the normal rate. You can find a way to get a discount from your NCE partner.
The Fixed Microsoft 365 licenses new prices in the NCE
- MS365 Business Basic license is €5.10 per month.
- MS365 Business Premium license is €18.58 per month.
- MS365 E3 license is €35.40 per month.
The Flexible Microsoft 365 licenses new prices in the NCE
- MS365 Business Basic license is €6.12 per month.
- MS365 Business Premium license is €22.32 per month.
- MS365 E3 license is €42.48 per month.
How to save on Microsoft NCE subscription
Saving on the Microsoft New Commerce Experience subscription can be done in several ways, but let’s share some with you.
First, signing up for an annual subscription instead of opting for a monthly plan may provide better savings as Microsoft offers discounts when customers commit to longer terms.
Also, using coupon codes available online or through third-party sites can help users save money on their subscription. For example, there are codes that offer discounts on specific products or services, as well as codes offering flat discounts off the total purchase amount.
How to negotiate a Microsoft NCE contract and save more
You get the most savings with NCE when you have a strategy to negotiate with your Microsoft NCE, CSP or LSP partner. First of all, you have to understand how NCE partners work and how they get paid by Microsoft.
Secondly you always need a plan to negotiate with your Microsoft NCE partner. If your partner does not want to give any discount, prepare for a benchmark. A benchmark will motivate your NCE partner to think twice. Q-Advise knows the payment structure, the how and on which products you can save most during an NCE negotiation. Our advice is, don’t start late with your NCE renewal, but at the same time use time to your advantage.
Our experts at Q-Advise after the introduction of the NCE, have studied and understand how it works with the periodic promotions limited to time and how you can take advantage of it.
Contact us and let’s assist you with the switch and answer all your questions.