WHAT MICROSOFT’S NEW COMMERCE EXPERIENCE MEANS FOR YOU
A new program has been announced by Microsoft which means that how you subscribe to Microsoft O365 and other subscription services through Daisy is changing. Called the “New Commerce Experience” or NCE, this is a natural evolution of how you can continue to purchase Microsoft’s online suite of services via Daisy, for example:
Microsoft has launched the NCE with the aim of improving flexibility for dynamic business and providing cost savings for those consumers who are able to make longer-term commitments.
Key dates announced by Microsoft:
- NCE is now generally available
- Introductory promotions launched
- Monthly discount to annual price till 30th June 2022
- Annual discount ends 31st March 2022
- From 1st March 2022, revised pricing on a select number of SKU’s will be issued (20% estimated increase to current annual pricing)
- From 10th March 2022 all new subscriptions must be purchased in NCE
- Legacy subscriptions must be renewed into NCE by 30th June 2022
Subject to change at Microsoft’s discretion
Subscriptions under NCE
|Monthly rolling||12 months||36 months|
|How can you pay?||Monthly||Annual and/or monthly||Upfront, annual and/or monthly|
|Decrease seats||We can only decrease the number of seats within the first 72 hours of the subscription or at the end of the subscription period (monthly)||Only able to decrease within the first 72 hours after the subscription goes live. After that, there is no ability to decrease seats until renewal||Only able to decrease within the first 72 hours after the subscription goes live. After that, there is no ability to decrease seats|
|Change licensing||Yes, you can change the subscription type monthly (e.g. E1, E3, E5)||You can increase functionality (the subscription type) e.g. E1 > E3 > E5 at any time but CANNOT decrease subscription functionality E5 > E3 > E1 until renewal||You can increase functionality (the subscription type) e.g. E1 > E3 > E5 at any time but CANNOT decrease subscription functionality E5 > E3 > E1 until renewal|
|Pricing||Approximately 20% more expensive than the annual pricing||Standard, this will include the pricing uplifts TBC in sterling for some licences.||Standard, this will include the pricing uplifts TBC in sterling for some licences. This is the best option for customers who want the longest price lock.|
|Advantages||Flexible term length||
Cost-saving when compared to monthly SKU
Prices locked for length of subscription
Cost-saving when compared to monthly and annual SKU.
Prices locked for the length of the subscription
|Availability||Generally available in 20221||Available now||Generally available in 20222|
|Maximum cancellation notice||72 hours||
1Some NCE seat-based offers will not have a monthly option available at launch. Please check with your account manager to make sure it is available
2Currently available for Dynamics 365 SKUs
NCE is only available up to 2,400 seats
Pricing Increases March 2022
Microsoft has also announced price increases coming in March 2022. Please see the announcement below from the Microsoft blogs page:
On March 1, 2022, we will update our list pricing for the following commercial products: Microsoft 365 Business Basic (from $5 to $6 per user), Microsoft 365 Business Premium (from $20 to $22), Office 365 E1 (from $8 to $10), Office 365 E3 (from $20 to $23), Office 365 E5 (from $35 to $38), and Microsoft 365 E3 (from $32 to $36). These increases will apply globally with local market adjustments for certain regions. There are no changes to pricing for education and consumer products at this time3.
Whilst we can make assumptions, these increases are currently only announced in USD. The actual changes in sterling have not been confirmed and this will not occur until 30-days prior to the increase review date in March 2022.