Navigating Microsoft’s New Commerce Experience (NCE)

As a Microsoft Licensing Consultant, I'm constantly helping clients navigate the ever-evolving world of software procurement. In this article, I want to put some more focus on the New Commerce Experience (NCE) and how it impacts pricing for Cloud Solution Providers (CSPs).

"Gone are the days of rigid, one-size-fits-all pricing models". Microsoft boasts that NCE has a more flexible and dynamic approach, empowering businesses to tailor their purchases to their specific needs. Microsoft’s NCE is the pricing model that builds on the CSP program. It is designed for cloud services and should help you to simplify procurement for all business customers. While it is true that the pricing model has more options, it's not necessarily more flexible. You can lock-in prices, but aside from that there are other changes - like the fact you only have 7-days to cancel if you have processed the incorrect license order (not that big an issue if you have proper license management).

Microsoft also states that the NCE marks a significant transformation in how customers and partners interact with Microsoft’s cloud services and license procurement. Making sure that it is more streamlined, easier to build on top of. See for instance the amount of portals that CSPs have been able to create in a short period of time, and you understand this might be true.

Introduced within the Cloud Solution Provider program, the NCE has overhauled Microsoft’s licensing structure within the CSP program, and this is the signal that Microsoft is aiming to move most products to this contract type - and even go as far as moving away from the EA and into the NCE/MCA directly as well (first signs already showing). NCE aims to streamline the purchase and management of Microsoft cloud services, including but not limited to M365, D365, Power Platform, and W365.

NCE impact on pricing

1. Lock in prices for predictability: Unlike the previous CSP model, NCE allows you to secure committed offers for periods ranging from 1 or 3 years (selected products only). This ensures price stability and helps you budget effectively.

2. Mix and match for optimal control: NCE empowers you to choose monthly or committed offers for different products within your organization. For example, you can lock in long-term contracts for core software used by permanent staff, while maintaining monthly flexibility for temporary employees or seasonal projects. It works in tandem with your Enterprise Agreement as well!

3. Benchmark and compare for cost savings: NCE uses Microsoft’s partner-driven pricing model, where individual partners set their own pricing. This opens up the opportunity to compare prices across multiple partners and negotiate the best deal for your specific needs. Not happy with your current prices? See if you can get better somewhere else!

4. Leverage regional pricing for global businesses: NCE allows you to compare prices across different regions, potentially leading to significant cost savings for international organizations with affiliates in various countries. This is an important and overlooked aspect, as currency differences might work out in your favor (if you can handle the FX differences)!

5. Look beyond just price: While cost is crucial, it's not the only factor to consider. Evaluate the additional services and support offered by different partners. This may include features like ease of license management, access to usage insights, and dedicated customer support.

Let’s show some examples! With NCE you can:

• Lock in a 1-year committed offer for Office 365 Business Premium for your full-time employees.?This ensures predictable costs and simplifies budgeting.
• Choose a monthly subscription for Office 365 E1 for your temporary contractors.?This provides the flexibility to scale up or down as needed without long-term commitments.
• Compare prices from multiple CSPs.?This ensures you get the best possible deal on your licenses.
• Choose a partner that offers additional services like automated provisioning and user management.?This saves you time and administrative overhead.

Remember, NCE is not a one-size-fits-all solution. By carefully evaluating your organization's needs and comparing offers from different partners, you can optimize your Microsoft licensing costs and unlock the full potential of NCE.

If you're unsure where to start, reach out to me to discuss your specific needs and explore your options. I’m here to help!

[email protected]

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