Microsoft announced they will be changing how companies purchase Microsoft 365, Office 365, and Dynamics 365 licenses, and Dynamic Quest is well-versed in the new program to help make the transition for our clients as smooth as possible.
The current CSP model will be phased out and replaced with the New Commerce Experience (NCE), a program that provides options for both month-to-month flexibility and long-term commitments for price protection.
With NCE fast approaching, we wanted to answer potential questions that our customers may have.
CSP offered monthly subscriptions and pricing. The count of licenses could go up and down as needed, which provided flexibility. However, there was no price protection if Microsoft changed its pricing.
NCE changes this to offer monthly subscriptions, annual subscriptions, and tri-annual subscriptions. The monthly subscriptions provide the same flexibility as before but Microsoft will add a 20% premium to the standard price for it and does not provide any price protection.
The annual and tri-annual subscriptions require a 12 and 36 month commitment, respectively, but provide price protection during that time. In addition, they offer monthly, upfront, and (for tri-annual subscriptions) annual payment options.
Importantly, annual, and tri-annual subscriptions can add licenses that will be co-termed but cannot decrease licenses until the renewal date.
Customers will find the NCE platform offers more flexibility and accommodations. These include three unique ways to acquire licenses.
January 1, 2022
Subscriptions will begin to move from the legacy CSP platform to the NCE platform over time (see key dates below).
January 1, 2022 – June 30, 2022
As an incentive, Microsoft will keep monthly NCE subscriptions at the “annual” rate (i.e.: without the 20% premium) through June 30, 2022.
However, any price hikes (such as the March 1, 2022, described below) will still be applied. Starting July 1, 2022, the 20% premium will be applied.
March 1, 2022
Microsoft will raise the price on 6 subscriptions by roughly 15%. To lock in current pricing, annual or tri-annual agreements should be signed by February 28, 2022.
March 10, 2022
All new subscriptions must be NCE.
July 1, 2022
All renewal subscriptions must be NCE.
Similar to how you can cancel orders, seat counts can be reduced within the first 72 hours of purchase. After 72 hours, you will not be able to reduce seats on annual subscriptions. However, some organizations may have a midterm order where they add seats. From this order, you will also have a 72 hour window to reduce back to your original order.
As your trusted advisor, Dynamic Quest will work with you to assess the needs of your organization. Our assessment will help you identify the service offering that works best for your business. Contact our sales team for more information and to take advantage of time-limited discounts.
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