Microsoft NCE – what you need to know before March 1st

What’s happening with your Microsoft Licence in 2022?

As of March 1st 2022, Microsoft is changing their licencing model to the New Commerce Experience. This new experience is aiming to simplify the customer experience.

The old way: CSP Licencing

To understand or even appreciate the new licencing model it would be best to see why CSP licencing needed to be updated. The CSP model was very busy as each of the 6 licences had its own terms and conditions. This meant there wasn’t a unified approach to each of the licencing options, which was confusing and time-consuming for users. As Microsoft is all about productivity, this licencing model did not represent who they are as a company and wanted to change that.

The New way: Microsoft NCE

Microsoft wanted to evolve its licencing model for a better customer experience. Microsoft New Commerce Experience (NCE) not only brings together each of the 3 purchasing motions but simplifies it with a single set of terms and conditions. These 3 new models are:

A- Breadth Motion 

B- Enterprise motion 

C- Self-service 

The 3 types of purchase agreement under NCE

Since January 2022, all seat-based licences such as M365, Windows, etc, have been available in NCE and CSP licencing. But please note, Microsoft is phasing out CSP licencing so as of March 2022, new licences will only be available in NCE.

Here are the 3 different purchase agreements:

1. Monthly.
2. Annually
3. 3-year term. March 2022 Microsoft will be launching its first 3-year term agreement.

To fully understand the licensing options, take a look at our article that details this.

T&Cs across these purchase agreements

As with most contracts, the longer you commit, the more beneficial pricing is available to you. With the yearly/3-year agreement, you could save up to 20% on your licences for committing to Microsoft over a long period. But monthly contracts also are beneficial due to their flexibility (even though you will be paying the premium pricing for it). If you do want that flexibility and beneficial pricing, you can use a blend of these licences.

Regardless of which purchase agreement you go for, all 3 have the same T&Cs. Whether you chose the monthly, annually, or even 3-year contract you get price protection for the duration of that agreement. If Microsoft’s standard pricing increases, you won’t be affected by it until you start your new agreement.

Although you cannot decrease your licences during your contractual term, you can add new ones. This is why a blended approach may be the best option for the long term. After you have increased your licence, it will then be updated on the same day, and your bill will be adjusted to this.  

Similarly, to the quantity of the seats, you can upgrade your licence types with immediate effect during your contract, e.g., you want the latest version of Microsoft 365. However, once you have added licenses to your contract, you can’t reduce this until the end of the contract.

What’s best for me? Hints and Tips

For any change, planning is key. Before the final change in March or before your current agreement is finished, consider what agreement would be best for your organisation. Our experts at ComputerWorld can also help you get the best solution for your business as they can tailor these plans in the most beneficial way.

As mentioned, the blended approach is most likely to be the best option for your business to have the flexibility and the best pricing. Work out how many minimum numbers of licences you need, e.g., looking at how many full-time staff you have. This minimum amount would be the number of long-term licences you would apply for so that you can benefit from premium pricing. The rest of the licences for part-time, project staff, seasonal, etc should go on the monthly licence agreement for that flexibility.

Need expert support?

Reach out to our Microsoft specialists to fully understand the changes, help you prepare and avoid the price increase.