Key changes at Microsoft: Navigate smartly through the New Commerce Experience (NCE)

January 4, 2024

In the early days of January 2024, it is crucial to stay alert to significant changes associated with Microsoft’s New Commerce Experience (NCE). The transition to NCE has been underway since January 2022 and is not yet fully completed, meaning we find ourselves in the midst of this transition.

Starting from January 11, 2024, users of legacy models will be migrated to a new system, where licenses can only be obtained on an annual or monthly basis, and subscriptions are set for a specific duration. This change represents a significant departure from the past and requires a deep understanding and strategic planning.

A quick look back: What does NCE entail?

Microsoft’s New Commerce Experience (NCE) for Cloud Solution Providers (CSPs) signifies a substantial evolution of the cloud service program. Originally introduced for Microsoft Azure in 2019 and later expanded to various Microsoft services, NCE aims to simplify licensing and align it with customer preferences during acquisition. It offers diverse term options (monthly, yearly, or multi-year) to enhance customer choice.

What is changing?

From January 11, 2024, Microsoft will begin migrating all remaining commercial license-based subscriptions to the new commerce at the end of each subscription period. Subscriptions will be converted to an annual commitment and retain the existing billing term (yearly or monthly).

Cancellation policy: The new commerce subscriptions come with updated cancellation rules. In contrast to the old system where you could cancel at any time, the rules in the new commerce model allow changes within seven business days after subscribing. After this window, your subscription terms will be locked.

Important to know:

Changing commitment or billing terms requires cancellation followed by a new purchase. If canceled on the same day, the subscription is immediately terminated.

Adjustments to the number of licenses, increases, or product upgrades can be scheduled for a future date. Downgrades of products require cancellation and a new purchase.

Add-ons and bundles:

For those using add-ons, migration supports moving them along with the base subscription. Ensure that all active add-ons qualify for migration, or the entire package may not migrate. There are two primary migration methods: the first involves migrating the base subscription with all eligible add-ons, while the second method allows individual migration of add-ons.

What does this mean for you?

The question arises – how will these changes affect your organization? Does the new model provide the agility and cost-effectiveness that modern businesses need? More importantly, how can you navigate these changes to ensure your organization is compliant and can fully benefit from what NCE has to offer?

If you have licensing-related questions on this topic, feel free to reach out to us. Our team of experts is ready to assist you.

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