The New Commerce Experience (NCE) brings the Cloud Solutions Provider (CSP) program into alignment with the other programs, such as the Enterprise agreement, so that all customers are subject to the same terms and conditions for cloud purchases.
The transition to the NCE started back in 2019 with Azure and now its time to move on to the next step. Microsoft is looking to align all the sales streams and provide a unified experience for cloud purchases. To do so, they introduced a new set of offerings for Microsoft 365, Dynamics 365, Power Platform, and Windows 365. To support all these new functional changes, a new set of features is added to the CSP program creating a whole new experience for you and your customers.
NCE Timeline
August 2021: The plan to introduce Microsoft 365, Dynamics 365 in the NCE was publicly announced.
October 2021: Microsoft released the NCE technical preview for partners to test the waters, send their feedback and get familiar with this new component.
January 2022: Microsoft officially launched the NCE in its CSP program with incentives and promotional offers for all CSP partners. From January onwards, legacy and NCE worked together.
March 2022: All new purchases were enforced through NCE along with a price increase and ending of promotional offers.
July 2022: Legacy subscriptions must be renewed in the NCE.
Changes in CSP
Product availability:
- New products (Microsoft 365, Dynamics 365, Power Platform, and Windows 365) are available to the CSP while the legacy ones are available with a new phase.
Subscription terms:
- Microsoft is willing to enhance customer’s commitment but also offer more flexibility to partners and customers who do not want to commit.
- Monthly term offers and annual term offers will become available for all products while triennial will become available for some products.
o Monthly-term offers for some products with a 20% higher price , compared to annual.
o Annual commitment offers for all products with price protection provided for the commitment terms.
o Three-year term offers for some products with price protection.
Cancellation
- You can no longer suspend or cancel seats during the term but only at an annual anniversary date.
- You can continue to add seats but you cannot remove seats during the term.
Billing options:
- Microsoft offers multiple payment options for each term to align with market needs and pave the way for annual and triennial purchases.
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- A new monthly term payment option which is 20% more expensive than the annual term.
- Upfront payment is offered for every term.
- Monthly or annual payment terms are offered for triennial subscriptions.
These are important changes and may impact the commercial terms you have agreed to with your customers today, and you may need to review your customer agreements. MachPanel’s team is ready to engage with you to plan the move to the NCE. Being your trusted advisor, we will guide and assist you to make the best choice for your customers.
Pricing
Pricing is shifting to be more market centric starting by having a price list for each market country that you sell. The selection of market countries that you sell to gives you the respective number of prices for its market country.
- Price lists are expressed in the currency of that market, for e.g., if you selling to the US, you will then use the prices for the US expressed in US Dollars.
- In the case of selling in two or more countries, two or more respective prices will be expressed.
- Microsoft will issue invoice for you in your local currency.
- For EU, Microsoft will give price lists for each market country in the European union.
Suspension
The new commerce subscription can be cancelled or resumed at any time without cancellation or termination. However, you will continue to be billed unlike in legacy, but the suspension will immediately block the customer’s access to Microsoft 365 services, applications, and files.
Promotions
- Promotions are also applied as a percentage discount to a given subscription with a given payment option and for a limited time duration.
- While in the promotion period, you can add seats to the subscription with the same promotional price.
- When the subscription is to be renewed, the promotion will be applied if its still active in terms of time.
Trials
As in legacy, trials are available for 25 seats and it cannot be changed or cancelled during the trial period.
Trial gets auto converted to paid subscription for an annual term with 25 seats. This can only be changed within the 72hour window.
About MachPanel: Fully automate your Microsoft Offerings with MachPanel.
MachPanel globally trusted Cloud solution provider addresses all the key challenges faced by Microsoft CSPs for seat-based offers in the Microsoft new commerce experience. In parallel to fully automated Selling, provisioning, Subscription management and billing experience, its unique ability to allow you to Package your Microsoft 365 offerings with multiple billing cycles, Commitment terms and most importantly set your own customized margins helps you become a winner.