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Microsoft New Commerce Experience

Microsoft New Commerce Experience

Microsoft recently unveiled a multi-stage, multi-year investment in the Cloud Solution Provider (CSP) program to help companies reduce complexity and achieve better purchasing flexibility. The Microsoft New Commerce Experience brings the CSP program into alignment with other programs, such as the Enterprise Agreement. It includes new licensing and monthly subscription options so that all customers have a consistent purchasing experience and are subject to the same terms and conditions for cloud purchases regardless of the Microsoft sales motion.

With the help of our Partner AppRiver, we are here to help you through this transition as seamlessly as possible. Below are some of the most popular questions regarding the new Microsoft Pricing.

Microsoft Pricing FAQs

Q1. What is the New Commerce Experience (NCE)?

Microsoft’s New Commerce Experience will soon be the platform on which all CSP products and services, such as Microsoft 365, are provisioned. As a part of Microsoft’s global effort to streamline, the New Commerce Experience will make the selling process, requirements, and capabilities much more consistent across the Microsoft ecosystem.

Q2: When will the New Commerce Experience be available?

Microsoft announced January 10, 2022, as the General Availability date for commercial CSP transactions and incentives for the New Commerce Experience, and customers will be able to place transactions using new commerce terms through us at that time.

Q3: How long can I continue to manage my seats under the legacy terms?

Renewals will be supported in the legacy platform through June 30th, 2022. Additional seats can also be added via the legacy CSP platform during the remaining subscription term but any new services must be ordered using the New Commerce Experience starting March 10th, 2022.

Q4: When will subscriptions be required to move to the New Commerce Experience?

All subscriptions ending after June 30th, 2022 must be renewed in the New Commerce Experience at the end of the subscription term.

Q5: Do I need to wait until an existing subscription expires before moving to the New Commerce Experience?

Customers may transition to the New Commerce Experience without waiting for existing subscriptions to end. We encourage customers to speak with their account manager to schedule an NCE Consultation to ensure you are able to take advantage of Microsoft’s promotional period for the New Commerce Experience.

Q6: What subscription terms are available in Microsoft’s New Commerce Experience?

Microsoft is making 1-month, 12-month, and 36-month subscription terms available in the New Commerce Experience. Monthly subscription terms will be priced 20% higher than the monthly cost of annual or multi-year subscriptions, consistent with the terms of the Microsoft Web Direct program. Multi-year subscriptions enable a customer to lock in the annual pricing for three years, consistent with the terms of Enterprise Agreements.

Q7: Can customers increase or decrease seat counts during a subscription term?

Customers can add seats to an existing subscription at any time during a subscription term, and all additional seats will have the same per-user cost as the existing seats during the subscription term. Seats can only be decreased at the end of the 1-month, 12-month, or 36-month subscription.

Q8: How does Microsoft’s New Commerce Experience impact cancellations and refunds?

If your service terms allows cancellation, Microsoft will only allow those cancellations within the first 72 hours of a transaction. If a refund is allowed, the refund will be prorated for the canceled order. This limited cancellation window applies to every new, add-on, or renewal transaction.

Q9: Why is Microsoft charging more for the new monthly term option?

The New Commerce Experience is designed to bring the CSP program into alignment with other purchase motions in new commerce, as well as existing Microsoft licensing programs, such as the Enterprise Agreement. This ensures that all customers have a consistent purchasing experience and are subject to the same terms and conditions. The higher pricing for the monthly-term option is in line with standard practice in the Microsoft Web Direct program, with licensing programs of competitors, and in other subscription-based businesses and industries.

Q10: Will customers be able to transfer their subscriptions to another provider during the term of an agreement?

New Commerce Experience subscriptions are not transferable during the subscription term. Customers may also have a mix of annual and monthly term subscriptions for the same service.

Q11: Are there any incentives for moving subscriptions to NCE?

Microsoft will run a promotional period for new commerce seat-based offer transactions starting January 10, 2022, and ending June 30, 2022. During this promotional period, monthly-term pricing will be the same as the standard monthly rate for annual-term transactions. Annual-term transactions will be priced at a 5% discount through March 31, 2022. Microsoft reserves the right to extend the 5% promotion through June 30, 2022.

Q12: How will the New Commerce Experience impact the previously announced price increases to Modern Workplace SKUs?

In August 2021, Microsoft announced commercial pricing increases for six key Microsoft 365 packages, effective March 1, 2022. Those pricing increases will apply to the 12-month term pricing, and 1-month term pricing will be an additional 20% higher. If a subscription is scheduled to increase in March, legacy customers may postpone the increase and save an additional 5% on their subscriptions by committing to an annual agreement in the New Commerce Experience before the March price increase takes effect.

We Can Help With These Changes

We will work with your Florida or Kansas City Business to make sure flexibility in licensing is met where needed while ensuring you the best pricing possible. Reach out to us at 813-749-0895 to see how we can help support you through these changes.

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