What is Microsoft’s New Commerce Experience
In January 2022, Microsoft is launching the New Commerce Experience. This change will impact the way you purchase Microsoft 365 licences and provide cost savings for long term commitments, whilst introducing additional features to make CSP a comparable alternative to the Enterprise Agreement.
In addition to the New Commerce Experience, there will also be a price increase that will take effect from 1st March 2022 for the following licences:
- Microsoft Business Basic
- Microsoft 365 Business Premium
- Office 365 E1, E3 and E5
- Microsoft 365 E3
When does NCE launch?
Here are some of the key dates that you should be aware of:
10th January 2022 – The New Commerce Experience (NCE) launches
1st March 2022 – the price increases across Microsoft 365 licences come into place
Subscription options for NCE
With the launch of NCE, Microsoft will be introducing monthly subscriptions to run alongside any annual subscription. They will also be launching a 36month subscription in March 2022, allowing you to save on any future cost increase by committing to the coming years. Here’s a summary of the three subscriptions available through NCE:
With the NCE you will have the ability to purchase your Microsoft 365 licences on a monthly basis without an annual commitment. Microsoft is now offering this to provide flexibility to customers that need to make monthly changes to their Microsoft 365 or Office 365 licences plans and seat count. This subscription does come at a 20% price increase across all licence plans.
12 month subscription
Through the NCE, you’ll have the opportunity to commit to your licences through a 12 month subscription. Unlike the legacy CSP model customers who consume on a 12 month subscription, you will have the option to be billed on a monthly or annual basis.
With the 12 month subscription, your pricing will be locked in for the full year allowing you to benefit from the additional cost savings of any price increases due in that time. This subscription will allow you to increase but not decrease the seat count.
36 month subscription
Microsoft is now introducing a 3 year pricing option for a longer term licencing commitment. With this subscription, you’ll have the option to be billed monthly, annually, or upfront. This subscription will allow you to increase but not decrease the seat count.
It is recommended that you speak to a Datastore365 expert about moving to the NCE before 1st March 2022 to avoid the Microsoft 365 price increases.
We would also suggest auditing your current licences ensuring you are not paying for licences you don’t need or paying a premium for features you’re not using.