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Microsoft New Commerce Experience (NCE) – what you need to know

Posted: Thursday, January 13, 2022

Author: Andy Portlock

What is NCE?

The New Commerce Experience (NCE) is the latest pricing model for Microsoft 365, Dynamics 365, Windows 365, and Power Platform subscriptions. It has been designed to minimise complexity in billing processes and provide cost savings for longer-term subscriptions.

 

What dates are these changes coming into effect?

1ST MARCH 2022:       Price increase in March on 6 SKUs (Read on for details)
10TH MARCH 2022:    Any brand-new subscriptions will be through NCE
1ST JULY 2022:           Second NCE enforcement for existing subscriptions


Subscription and price changes

Initially, NCE will give you Annual and/or Monthly commitment options depending on the licence type.

For annual subscriptions cancellations or seat reductions will only be allowed within 72 hours of placing an order. Monthly licences will be charged at 20% above the annual price. Upgrades mid-term will be allowed. Not all licences will be available on a monthly commitment. (Read on for details)

 

Monthly subscription products available:

Annual will be available for all products, but monthly will only be available for a selection.
Please see the list below: (subject to change)

 Microsoft 365 Apps for Business Microsoft 365 F1 Visio Plan 1
Microsoft 365 Apps for Enterprise Microsoft 365 F3 Visio Plan 2
Microsoft 365 Business Basic Office 365 E1 Power BI Premium Per User
Microsoft 365 Business Premium Office 365 E3 Power BI Premium Per User Add-On
 Microsoft 365 Business Standard Office 365 E5 Windows 10/11 Enterprise E3
Microsoft 365 E3 Office 365 E5 without Audio Conferencing Select Dynamics 365 offers
Microsoft 365 E3 – Unattended License Office 365 F3 Windows 365 Business
Microsoft 365 E5 Power BI Pro Windows 365 Enterprise
Microsoft 365 E5 without Audio Conferencing

 

Price increases

After a decade of continuous innovation providing us with new apps (Teams, Planner, Power Platform, Whiteboard, Shifts, Forms, etc.) and over 1,400 new features and capabilities, for the first time in 10 years, Microsoft has finally announced their first substantive pricing changes for 2022.

On March 1, 2022, Microsoft will update its pricing for the following commercial products:

  • Microsoft 365 Business Basic (+20%)
  • Microsoft 365 Business Premium (+10%)
  • Office 365 E1 (+25%)
  • Office 365 E3 (+15%)
  • Office 365 E5 (+9%)
  • Microsoft 365 E3 (+13%)

All increases will apply globally with local market adjustments for certain regions. There are no changes to pricing for education and consumer products at this time.

 

Promotional Offer

Microsoft are offering two, time-sensitive NCE promotions – capped at 2400 seats per subscription. There is a 5% discount for annual commitments based on current prices and for monthly commitments, the 20% premium will be postponed until July 2022.

Importantly, by switching subscriptions to an Annual Commitment before the 1st March, you will not only receive a 5% discount on current pricing for 12 months, you will also avoid the scheduled Microsoft price rises due to come into effect on 1st March 2022.

 

Benefits of NCE

You can try new products more easily with more options –

  • The new Windows 365 is available now
  • Added free-trial choices
  • New add-ons available only on New Commerce

Offers to meet your specific or changing needs –

  • New monthly term subscription options

Get more value with commitment –

  • Choose the best pricing on annual terms, and get long-term price protection
  • Lock in pricing for further with multi-year terms for Dynamics 365 (and coming soon: Microsoft 365 and other offer types)
  • Switch from monthly to annual terms whenever you need and save money with commitment.


Ensuring your ROI

Microsoft has continuously re-invested to meet the changing needs of its customers and since its release four years ago, Microsoft 365 has added the following key features as well as many others –

  • Improved Communication and collaboration through Microsoft Teams:
    Meetings, chats, calls, collaboration, and the ability to automate business processes.  Microsoft Teams enables end-users to remain productive and drive business value efficiently.
  • Enhanced security and compliance:
    Added capabilities to reduce risk and remain secure, like data loss prevention (DLP) for documents and emails, Office messaging encryption, and attack surface reduction capabilities.
  • AI and automation:
    Microsoft Power Platform-tools have added new AI-supported capabilities that save time and drive efficiencies through task automation. Power BI drives data insights, source information, and aids communication in ways that are more accessible for everyone.
  • Increased value to Microsoft 365 Business Premium:
    Microsoft added Azure AD Premium Plan 1, Azure Information Protection Premium Plan 1, Office 365 DLP, Microsoft Defender for Office 365 Plan 1, Shared Computer Activation and Azure Virtual Desktop (WVD)

If your business is not already using Microsoft to drive productivity, efficiency and change within your business – talk to us today about how we can help you leverage the solutions you already have to enhance your business goals.


What are your options:

  1. Transition your existing license to NCE before 1st March 2022.
  2. Audit your license estate and define your requirements for the future, and move before 1st March 2022.
  3. Do nothing, and experience enforced renewal in June 2022 and the associated price increases.

 

Which option is best for your business?

We are here to help you understand and navigate these changes. Your dedicated Utilize Account Director will be in touch soon to discuss which option is right for your business and to guide you through the NCE implementation process.


Join our Free ‘NCE Explained’ webinar

We are also hosting an informative hour long webinar ‘Introduction to NCE’ webinar on the 3rd of February – Designed to clearly explain how this affects your business, you will have the opportunity to ask us any questions you may have.

Please click here to register and join.

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