Important announcement

Microsoft have recently announced the introduction of their New Commerce Experience (NCE). This is part of a transformational journey that will change the way that customers transact with Microsoft.

The New Commerce Experience is a multi-phase, long-term investment in the CSP program aimed at helping partners to accelerate growth through predictability of revenue, simplify licensing and address how customers prefer to purchase. The NCE will be available in early January 2022 and will include seat based offers in CSP for Microsoft 365, Dynamics 365, Windows 365 and Power Platform.

Subscription Terms

Subscriptions are changing in the NCE and will be available on three different term options; Monthly, Annually and Multi-Year with different pricing dependent on the customers’ commitment. For customers who only commit to short term monthly contracts there will be a premium of 20%, but for those who commit long term there will be a price break.

Licences can be mixed and matched per client so you can have both annual commitment and monthly for the same subscription. For licences on an annual commitment, you also have the option to pay monthly.

Please note: with the NCE, the previous arrangement where Microsoft allowed you to suspend annual licences mid-term without penalty, will no longer be available.

Increasing / Decreasing seat counts and SKUs

In the NCE, you can increase your seat count or SKUs for both SMB and Enterprise SKUs at any time. However, you only have 72 hours from time of purchase to cancel a subscription. After that period, no refunds will be granted and you will be required to pay until the end of the commitment term.

In the New Commerce Experience, Partners can Pause customer subscriptions, but the partner will continue to be billed. Pausing a subscription will immediately mean it enters a “disabled” status where users cannot access files or services. Admins will still be able to access data until the end of the subscription term.

Switchover date

Both the legacy and New Commence Experience will run concurrently as of early January 2022, however all new subscriptions will be required to be procured on the New Commerce Experience from March 2022.

Price Protection

Whilst there are no price changes to SKUs included in the NCE, Microsoft have announced price increases to the following SKUs to start on 1st March 2022.

● Microsoft 365 E3 (from $32 to $36)
● Office 365 E5 (from $35 to $38)
● Office 365 E3 (from $20 to $23)
● Office 365 E1 (from $8 to $10)
● Microsoft 365 Business Basic (from $5 to $6)
● Microsoft 365 Business Premium (from $20 to $22)

UK pricing has not yet been announced but we are assuming that the increases will be the same %.

Please note: you can lock in price protection before this price increase by purchasing an annual commitment on the New Commerce Experience.

What do I have to do?

Partners will not automatically be moved to the New Commerce Experience. You will need to migrate existing subscriptions manually at the end of their terms. We are working to make this transition as easy as possible for you using Risc IT’s iStore and will be in touch closer to the time with further details.

Concerns

As always, we are here to help. We appreciate that this is a fundamental change in the way we have all engaged with Microsoft (Customers and Partners), but the resulting change will provide a level of stability and predictability which will benefit us all in the long term.

Going forward this page will act as a hub and we will endeavour to update it with further material and announcements on release. We will keep you updated and, of course, if you need to discuss this further, please feel free to get in touch.

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