New Commerce Experience (NCE)

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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
Increase seats Yes Yes Yes
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 72 hours
 
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.

3https://www.microsoft.com/en-us/microsoft-365/blog/2021/08/19/new-pricing-for-microsoft-365/

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.

FAQs

As your current subscriptions are based on an annual agreement, the price increases only come into effect on the renewal date of your existing subscriptions.

Yes, however you cannot “renew early” to beat the price increase. NCE long term commitment may be your better option for cost savings.
The current subscription is a 12-month commitment. Microsoft has been flexible with this to date however, this is being tightened up under NCE and is likely to be tightened on the current legacy program as well. If you need/want this flexibility guarantee, then a transfer to NCE may be the best option.
Yes, if you wish to take advantage of NCE at any time you can switch from your current program without penalty.
Yes, you can take a range of subscriptions within one tenancy. For example, take a watermark quantity on 36-months for fixed, long-term staff and subscribe a number on a monthly term for flexible or part-time staff.

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