What does Microsoft’s New Commerce Experience (NCE) mean for your business?

The wide range of licencing options that Microsoft provides are well known to many of its clients. Each option has its own unique set of restrictions, guidelines, requirements, and difficulties.

Microsoft is launching a new subscription licencing model called the New Commerce Experience (NCE) to simplify the purchasing process for customers. This licencing model promises to streamline subscriptions while providing consumers more freedom to customise their purchases to their particular company requirements.

The NCE model will apply to seat-based subscriptions such as Dynamics 365, Microsoft 365, and the Power Platform. Its goal is to reduce complexity and costs for customers while offering more tailored solutions.

What are the significant changes?

The New Commerce Experience provides end customers who use per-seat licensing with a range of buying choices, such as:

NCE short-term commitment: monthly subscription

Customers have the option to subscribe to this service on a monthly basis, allowing them to change the amount of seats they buy each month without being tied down to a lengthy agreement.
Customers who choose monthly subscriptions will have to outlay a 20% premium in recognition of the flexibility offered.
This alternative enables customers to cancel their subscription with only 30 days' notice, and also provides them with the ability to add or remove seats at the end of each month, based on their evolving business needs.
Price increases are not protected and will increase in line with any price changes made by Microsoft.
New purchases come with a 72-hour cancellation window.

NCE long-term commitment: 12 month subscriptions

Customers who choose a 12-month term will be safeguarded against any price increases for the entire 12-month period.
The subscription can only be cancelled within the initial 72-hour period (with pro-rated billing). Once the 72-hour window has elapsed, customers cannot cancel and must commit to the full 12 months.
Customers cannot reduce the number of seats purchased during this period, but they can add seats, which will be pro-rated billed.
Subscriptions can only be terminated at the end of each 12-month term.

Can you mix subscriptions?

It is possible to mix subscriptions under the NCE framework. Customers have the option to purchase a blend of monthly-term and 12-month term subscriptions. This feature can be particularly beneficial for businesses that employ seasonal workers.

What if I need to cancel?

Every subscription has a 72-hour cancellation period. The subscription cannot be cancelled beyond this point until the full term has passed. Customers who are hesitant to sign up for a 12-month term benefit most from monthly subscriptions because they have the option to cancel at the end of each month, if necessary.

Does the NCE apply to all customers?

At present, the NCE model is limited to commercial pricing. There have been no official announcements made with regards to any modifications in not-for-profit, academic, or government models. Nevertheless, there remains a possibility for future adjustments.

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