Have you dealt with Microsoft licensing over the past few years? Confused by the different procurement models? Microsoft has simplified this just for you through the NEW COMMERCE EXPERIENCE on CSP.
Microsoft has introduced 3 key procurement models:
|Breadth Motion||Enterprise Motion||Self Service Motion|
|Ideal for customers currently on CSP, or customers between 1 -2400 seats||Enterprise Agreement is ideal for customers with a complex environment and has global requirements||Web direct with Microsoft for both corporate or domestic customers|
Microsoft CSP and the move to NCE, what are my options?
- Secure your move over to NCE on an annual commit before 1 July 2022 and save up to 20% on extra monthly trade-offs
- Secure your move to NCE monthly commit, this option attracts a 20% fee on trade-off for flexibility
With the introduction of the NCE, Microsoft will have a phased approach to get customers over to the new program. The below timelines will assist you to understand the journey of the different phases.
|Jan 1 – March 31, 2022||Annual offer promotion for NCE|
|March 10th||All new purchases are done through NCE|
|March 15th 2022||Price Increase on certain Office 365 licenses|
|July 1 2022||All renewals and purchases are done through NCE|
Key Differences between NCE Annual Commit and Monthly Commit
|Monthly Commit||Annual Commit|
|30 Day Term||12-month Term|
|Reduce/ Downgrade license in the month for the following month||Reduce/ Downgrade licenses at 12-month renewal date|
|Add/ Upgrade licenses during the monthly term||Add/ Upgrade licenses during the 12-month term|
|Monthly Payment||Annual Payment|
|20% Tradeoff for Flexibility||Limited Flexibility and standard pricing|
Questions? Read on …
What is NCE?
New Commerce Experience is a simplified way for businesses to purchase licenses underpinned by a single Microsoft Cloud Agreement (MCA) thus allowing customers to focus on longer commitments for their Microsoft products allowing customers to plan around the procurements and these yearly commitments.
Key Difference between CSP and NCE?
Licenses purchased through NCE will have a 12-month commitment term associated with them that can be paid annually upfront. New licenses can be added or upgraded but not reduced or downgraded through the contract term. It is crucial for customers to get the right licenses purchased upfront.
What if I prefer paying monthly for my licenses, is this possible?
Yes, however, there is a 20% premium as a tradeoff for flexibility on all licenses. As this is a monthly commitment, you can reduce licenses in the month for the following month or add licenses as the need arises.
What is the cancelation policy on NCE?
Monthly Commit – cancel in the month
Annual Commit – cancel at the end of the 12-month term
Should licenses be added during the term in error, this can be canceled within 7 days only, after which you would be committed to the licenses for the remaining term as above.
Can I have a combination of annual Commit and Monthly Commit?
Yes, you can commit monthly to licenses that change frequently due to many factors, such as contract workers, temporary projects, etc. the rest of the licenses can be purchased on an annual commit.
Will Microsoft be introducing a longer term than 12-months?
Yes, Microsoft will be introducing a 36-month option, more details to follow on the Mint website and future blog releases.