The more things change, the more they stay the same.
Microsoft’s cloud licensing program is changing. The licensing agreement program CSP (Cloud Solutions Provider) – is not going away, but it is changing. Effective 3/1, Microsoft’s cloud subscriptions will now are shifting to something called the New Customer Experience (NCE).
NCE has quite a few changes, here are the ones that impact you:
The Products Listed Below Will Increase In Price on 3/1/2022.
These are price increases on the annual commitment SKUs (more news on the month-to-month later on).
If you want to avoid the price increase that will take effect on 3/1, you can move over to NCE before 3/1 with an annual commitment.
- Price Increase:
- Microsoft 365 Business Basic – 17%
- Microsoft 365 Business Premium – 9%
- Office 365 E1 – 20%
- Office 365 E3 – 13%
- Office 365 E5 – 8%
- Microsoft 365 E3 – 11%
With this price increase and the migration to NCE, Audio Conferencing will now be included in all Teams-included Microsoft 365 and Office 365 licenses – this will offset or replace the price increase for most of the licenses above.
Cancellation Windows:
This window has been extended from the previous 72 hours, to seven calendar days (168 hours).
There Are More Options Available:
You have the flexibility to mix commitment term lengths as it makes sense for your business (i.e. monthly commitments for seasonal workers and annual for FTE):
True Month-to-Month
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- This is the biggest change in that the true month-to-month comes with a premium price tag.
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- As part of this change, the month-to-month SKUs will include a 20% premium (on top of the price increase).
- To ease the transition, there is a promo that allows those who want this true month-to-month option to bypass the 20% premium through 6/30/2022 if they convert to or buy the NCE subscription.
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- This is the biggest change in that the true month-to-month comes with a premium price tag.
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Annual Commitment (Paid Monthly)
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- This is not new, but a continuation of the current monthly version; however, the annual commitment will be enforced under that option.
- The number of licenses that clients sign for on the front end are what the client will be locked in for the duration of the term.
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- They can add licenses that will automatically co-term to the term’s end date, but they cannot reduce licenses.
- You can upgrade licenses during the term, but you cannot downgrade licenses.
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Annual Commitment (Paid Upfront)
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- The number of licenses that clients sign for on the front end are what the client will be locked in for the duration of the term.
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- They can add licenses that will automatically co-term to the term’s end date, but they cannot reduce licenses.
- You can upgrade licenses during the term, but you cannot downgrade licenses.
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- The number of licenses that clients sign for on the front end are what the client will be locked in for the duration of the term.
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Three-Year Commitment (Paid Monthly)
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- This version is also new.
- This is an entirely new option that will lock in current pricing for 3 years.
- The number of licenses that clients sign for on the front end are what the client will be locked in for the duration of the term.
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- They can add licenses that will automatically co-term to the term’s end date, but they cannot reduce licenses.
- You can upgrade licenses during the term, but you cannot downgrade licenses.
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- The 3-year commitment options aren’t available at this time. There is no ETA on it, but we are hearing that it will be available around 7/1.
Three-Year Commitment (Paid Annually)
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- This version is also new.
- This is an entirely new option that will lock in current pricing for 3 years.
- The number of licenses that clients sign for on the front end are what the client will be locked in for the duration of the term.
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- They can add licenses that will automatically co-term to the term’s end date, but they cannot reduce licenses.
- You can upgrade licenses during the term, but you cannot downgrade licenses.
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- The 3-year commitment options aren’t available at this time. There is no ETA on it, but we are hearing that it will be available around 7/1.
Three-Year Commitment (Paid Upfront)
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- This version is also new.
- This is an entirely new option that will lock in current pricing for 3 years.
- The number of licenses that clients sign for on the front end are what the client will be locked in for the duration of the term.
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- They can add licenses that will automatically co-term to the term’s end date, but they cannot reduce licenses.
- You can upgrade licenses during the term, but you cannot downgrade licenses.
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- The 3-year commitment options aren’t available at this time. There is no ETA on it, but we are hearing that it will be available around 7/1.
Timeline:
NCE Adoption Promotions:
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- Monthly offer promotion (bypassing the 20% premium) – now through 6/30/2022
- Annual offer promotion (5% discount) – now through 3/31/2022
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Price Increase – Impacts both CSP and NCE
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- Impacted licenses: Business Basic, Business Premium, O365 E1, O365 E3, O365 E5 & M365 E3 – 3/1/2022
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- Unless you are locked into an annual agreement before 3/1/2022, your first bill after that date will reflect the price increase.
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- Impacted licenses: Business Basic, Business Premium, O365 E1, O365 E3, O365 E5 & M365 E3 – 3/1/2022
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- NCE Policy:
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- New subscriptions (including agreement additions) must be purchased through NCE – 3/10/2022
- Legacy subscriptions must be renewed into NCE – 7/1/2022
- Forced Transition to NCE – 7/1/2023
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- NCE Policy:
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Incentives – NCE
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- Incentives for legacy CSP – Ends 12/31/2022
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For a recap, Microsoft did make some nice graphics that provide most of the highlights from the information above.
The 3-year commitment options aren’t available at this time. There is no ETA on it, but we are hearing that it will be available around 7/1.
Yes – that is a lot. Let’s take a breather…. Alright, now what can you do to prepare.
How can you avoid the price increase?
The only way to avoid/push off the price increase is by locking yourself in to a multi-year commitment (can be paid monthly, annually, or upfront) before 3/1.
How will this benefit me?
This is a question with couple different answers, so we are going to approach it from a couple different angles.
NCE Overall: We didn’t cover it much in the article above, but Microsoft’s goal with NCE as a whole is to make partners (like Mirazon) a bigger part of their sales and support model while simplifying how customers can buy licenses. NCE simplifies Microsoft’s offerings into 3 silos that are designed to make partners (like Mirazon) the focal point of their sales and support. This will allow your partner to be able to better help you out with any deployments and support-related issues.
NCE’s Cloud Subscriptions: The biggest change here is that customers are given more flexibility with the terms and licenses that you can deploy. With the added options, you can better tailor and intermingle your licenses and terms to meet your businesses needs. Additionally, if you enter into an NCE annual or multi-year commitment agreement prior to 3/1, when the price increase goes into effect, you are able to pass the price increase off for the length of your term.
What happens if I don’t do this in time?
There is a clear timeline here, but there is plenty of time for you to make the move over to NCE. There aren’t any deadlines where you will just lose your license, but you will have to be moved over to NCE soon. Your partner will be able to best advise you on your options.
What if I need help or have questions?
We know change can sometimes be frustrating. That’s why we are here to help! If you need any assistance navigating through this change, reach out to us – it’s what we are here for. And by the time we get through this transition, we will all be happier for it.