Recommendations and best practices to help guide your business.

What is the Microsoft New Commerce Experience?

Microsoft recently unveiled a multi-stage, multi-year investment in the Cloud Solution Provider (CSP) program to help companies reduce complexity and achieve better purchasing flexibility. The new commerce experience brings the CSP program into alignment with other programs, such as the Enterprise Agreement. It and includes new licensing and monthly subscription options for commercial licenses so that all customers have a consistent purchasing experience and are subject to the same terms and conditions for cloud purchases regardless of the Microsoft sales motion.

Nimbus Logic is here to help our customers navigate these changes and the corresponding effects on your business.

What is the timeline and what does that mean for you?
The New Commerce Experience will be generally available starting in January 10, 2022, and Microsoft will require all new subscriptions to take place in NCE starting March 10, 2022. The NCE launch promotional period (January 10, 2022 to June 30, 2022) is designed to ease the transition.

New Commerce Experience

Things to consider:

Number of seats and terms each client needs

  • Additional users and services may be added at any time
    No seat reductions will be allowed during a license term

Agreement length

  • Choice of monthly, annual, and multi-year agreements
  •  Monthly agreements = premium pricing and monthly flexibility

New cancellation terms

  • Cancellation window (3 days) leaves you with a limited time to correct mistakes on an order

When Microsoft Legacy CSP transactions end

  • • Clients can stay on the legacy system and add seats until their renewal
    • Beginning March 10, 2022, no new services will be allowed in Legacy CSP; however. customers may renew existing subscriptions through June 30, 2022

Recommendations

  • For SKUs impacted by the March price increase, consider canceling legacy subscriptions and migrating to the Annual NCE agreement before March 1, 2022 to avoid the price increase for a year AND reduce current cost by 5%.
  • Even though Microsoft suggested they will extend the 5% promo through June, to guarantee the best pricing move to an annual term before March 31, 2022.
  • Customers can have both monthly and annual subscriptions for the same SKUs. Minimize cost with an annual subscription for the average annual employee count, while using monthly subscriptions for seats expected to be unused for 3 months or more each year.