Microsoft 365
New Commerce Experience
What is the New Commerce Experience (NCE)?
- The New Commerce Experience (NCE) is Microsoft’s New ‘per seat’ model for Microsoft 365, Dynamics 365, Windows 365, and Power Platform subscriptions.
- Microsoft’s goal is to move everyone to an annual agreement
Office 365- Microsoft 365 Value!
- This is the first substantive pricing update since the launch of Office 365 over a decade ago.
- Over this time, Microsoft 365 has provided significant regular feature upgrades.
- Microsoft notes, the value it has added over the last 10 years and the additions they plan for the future are the reasons for an increase.
- Over this 10-year period Microsoft has added 24 new applications to various M365 subscriptions, some of which include SharePoint, OneDrive, Teams, Bookings, Forms, Lists, Yammer, To Do, Whiteboard, OneNote, Visio for web and others.
Which Microsoft products will increase on March 1, 2022?
SMB
- Microsoft 365 Business Basic: $6 (from $5)
- Microsoft 365 Business Premium: $22 (from $20)
Enterprise
- Office 365 E1: $10 (from $8)
- Office 365 E3: $23 (from $20)
- Office 365 E5: $38 (from $35)
- Microsoft 365 E3: $36 (from $32)
What options do you have?
You do have Options
Prepay for an annual subscription vs monthly before February 28, 2022
- Locks in current pricing with no per user increase
- Forgoes the 20% monthly premium increase
Prepay for an annual subscription vs monthly before June 30,2022
- Forgoes the 20% monthly premium increase
What can you do during the annual subscription?
During the annual subscription agreement
- Upgrades – you can go from one paid subscription to another if the target subscription is priced higher
- Partial upgrade – you can add to already subscribed products – locks in current pricing and is coterminous with original subscription
- You may have both monthly and annual subscriptions for the same Microsoft product
Who will not be affected?
- NCE will not be available for Government, Non-Profit, and Educations licenses at this time which means these subscriptions will remain on CSP Legacy for now.
- Users with home/family and educational Microsoft 365 plans will not see an increase.
- Not all commercial Microsoft 365 licenses will see an increase.
Recommendations
Is your Business in growth mode?
Prepay annual subscription before February 28, 2022
- Purchase licensing for all users.
- Add products at an annual fee rate locked-in and the agreement co-terminate.
Does your Business employee count fluctuate or are you seasonal?
Prepay annual subscription before February 28, 2022
- Purchase licensing for user count based upon forecasted minimums for the year.
Subscribe to monthly user counts for fluctuation before June 30, 2022
- This allows for the ebb and flow of the user subscriptions going forward on a monthly basis; ideally seats that would be unused for 3 or more months throughout the term.
For individual recommendations, schedule time with our Centaris Team to review your specific situation.
Critical Decision Timeline
July 1, 2022 – Legacy CSP Renewals will no longer be allowed which means the 20% monthly premium will apply on all monthly subscriptions for all Microsoft 365 products.
Timeline … Act before these dates
March 1, 2022 - Price increases will take effect on the six products mentioned previously; All new and renewing subscriptions are required to be purchased under NCE.
July 1, 2022 - Legacy CSP Renewals will no longer be allowed which means the 20% monthly premium will apply on all monthly subscriptions for all Microsoft 365 products.
