Microsoft is changing the way we purchase and manage customer Licensing – It is called the New Commerce Experience. Below, we will explore what the main changes will be and how that will affect your agreement with supportIT. If you are a client of supportIT, you will receive further email communication at the end of January to discuss the preferred license/subscription terms.
1) What is the New Commerce Experience (NCE)?
On January 10th 2022, Microsoft launched the New Commerce Experience (NCE). This change will impact the way our clients purchase Microsoft 365 licenses. Clients will have the option to commit to a monthly or 12-month subscription when they purchase the license and can opt to be on a monthly billing cycle or pay for the full year in advance.
2) Why did Microsoft launch NCE?
Microsoft has launched the NCE intending to provide cost savings for long term commitments and to offer customers greater choice and flexibility in how they buy.
3) Will all subscriptions have to be on NCE?
Yes, all commercial subscriptions will have to be on NCE from the 01st of March. Not-for-Profits are exempt.
4) How will supportIT manage the process?
Clients will receive a quote based on their existing subscriptions. Once approved, the quote will generate terms and conditions. Once the T’s & C’s have been signed, the license will be applied. Note that there will be a 72 Hour cancellation period once the license is applied. There will also be a notification process once the term of the initial contract is up so clients can review their licenses at that time.
5) What happens if I add new users after the initial agreement is in place?
Those new licenses will co-term with the existing agreement and will be added to the monthly invoice or billed pro-rata for the remaining term of the agreement.
6) Can I remove users/ subscriptions after the contract has been agreed upon?
Unfortunately, no. The client is tied into that number of users for the term of the contract. However, users can be replaced if it is a replacement hire.
7) What if a client decides to move to a new supplier during the term?
A contract cannot be moved or cancelled. If a client decides to move supplier during the agreed term, they will have to either leave the Microsoft subscription with supportIT OR reimburse the value of the time remaining on the contract.
8) Price Increases?
Unfortunately, this isn’t the only announcement from Microsoft. In addition to the NCE, there will be a price increase that will take effect from 1st March 2022 for; Business Basic, Business Premium, Office365, E1, E3 and E5, Microsoft 365 E3. However, if clients sign up to NCE before the 01st of March 2022, existing pricing will be fixed for the year.
9) Subscription Summary
|Monthly||12 Month Subscription|
|Payment Options||Monthly||Monthly & Annually|
|Cancellation Adjustment Window||72 Hours||72 Hours|
|Seat Changes||Increase Always, Decrease within Cancellation adjustment window||Increase Always, Decrease within Cancellation adjustment window|
|Benefits||Flexibility||Cost Saving and Locking|
Clients will receive a legacy Office365 Bill with their usual monthly contact invoice that will close off their existing subscription model and they will receive a new NCE subscription bill by the 12th of the following month. Unfortunately we have yet to see what the billing looks like, but once we do we will update the FAQ’s with anything that needs to be highlighted.