The option to switch plans from annual to monthly is only available within 72 hours after placing an order for an annual subscription. Can I Change an Annual Term Commitment Offer to a Monthly Commitment Offer? After June, legacy customers will have to renew subscriptions in the New Commerce Experience to continue Microsoft services. Microsoft partner incentive rebates on legacy subscriptions will be removed in October 2022. Legacy subscriptions will remain in effect until each of the subscription term’s end. However, the ability to renew existing subscriptions on the legacy CSP platform will continue through June 30th 2022, ending on July 1st 2022. All new subscriptions must be made on NCE after March 1 st 2022. For Legacy CSP Customersįor Legacy CSP customers, there are a few key dates to remember. October 1 st 2022 – All customers will have to purchase through NCE, partner incentives and rebates are removed. July 1 st 2022 - Legacy CSP customers must renew to the NCE plan to continue subscriptions. March 1st 2022 – From March 1 st onward, all new and renewing subscriptions must be purchased through NCE (Legacy CSP customers will be able to finish their existing terms). The chart below reflects the increase from each individual SKU. This is the first significant price increase since Office 365 was launched 10 years ago and reflects the value of innovation that’s been added over the years.Īs a result, no matter what plan your company decides on with the NCE subscription (monthly, annually, tri annually), you will be paying more for Microsoft services after March 1 st, 2022. The amount of increase will depend on your SKU and begins on March 1st 2022. While it is not directly tied to the new commerce experience, Microsoft will be increasing its pricing on average for each of its bundles by an average of 15%. MS Application Price Increase Unrelated to NCE See our article about Microsoft Office 365 Business plan review. Listed below are the seat-based subscriptions impacted by the changes: Which Applications of Microsoft are Included with NCE? Users will still be able to add licenses during the term of a subscription, but will no longer be able to reduce the number of licenses during the term of a subscription. Users who opt for the convenience of a monthly subscription will incur a 20% increase in pricing from the annual subscription price - this applies to all Microsoft CSP licensing. > Billing options: monthly, annually, or 3-year upfront
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> Upgrades available, downgrades not available Tri Annual – (3-year plan) Same pricing as CSP.> Upgrades available, downgrades not permitted
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Annual – This subscription offers the same costs as existing CSP pricing.> Billing will be expected upfront on the first of every month > Upgrades are available for mid-level products, while there are no downgrades permitted > The change in NCE will enact a 20% increase to current subscriptions under the CSP plan. Monthly Subscription - This option allows for the most flexibility This updated process goes into effect on March 1, 2022, and the details you need to know are outlined below: There will be 3 subscription lengths: Monthly, Annual, and Tri Annual. With this new platform, Microsoft will be adding guidelines for how users can add and remove licenses to a subscription. Government and non-profit organizations will not be affected by this plan. The NCE plan is directed at commercial businesses only. This NCE plan includes term subscriptions that reward loyalty and commitment to Microsoft. NCE licensing creates a standardization of offers and terms by reducing CSP’s pre-existing array of options.
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The goal of introducing NCE is to enable customers to broaden their choices and buy more easily, while optimizing costs. Learn more about Microsoft 365: The ultimate guide to Microsoft Office 365 licensing.
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To achieve this, Microsoft launched the New Commerce Experience (NCE) for Microsoft Azure in 2019 – and in fall of 2021 expanded NCE to include Microsoft 365, Dynamics 365, Windows 365, and Power Platform for commercial seat-based offers. In addition, Microsoft aims to provide flexibility to support a range of client purchasing scenarios. Over the last few years, Microsoft has been targeting the reduction of licensing costs and complexity. This CSP plan is being replaced by a new program called the “New Commerce Experience." CSP to NCE: Why the Change?įrom the beginning of the launch in 2015 of the Microsoft CSP plan, many products have evolved.
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Microsoft has recently announced a change in how customers purchase and manage their licenses through their Cloud Solution Provider (CSP) Program.