New Commerce Experience Explained
NCE for Microsoft seat-based cloud offers
Microsoft CSP seat-based cloud offers on new commerce experience (NCE) for Microsoft 365, Dynamics 365, and Power Platform, as well as Windows 365 are available from January 2022. We have created this blog to highlight the key differences between the legacy CSP and the New Commerce Experience, as well as other information to help you our partners prepare for the transition from legacy CSP to the NCE.
Note that Microsoft CSP NCE only currently affects commercial customers. Education and NFP customers are not affected.
You can find the official Microsoft announcements can be found below:
- Coming to the Cloud Solution Provider program: seat-based offers in new commerce
- Partner Center August 2021 announcements: New commerce experience for Microsoft 365, Dynamics 365, Power Platform, and Windows 365 seat-based for breadth motion
Before we talk about the key differences between CSP and NCE, let’s talk about the key features of the current CSP offer. The key features of the current CSP offers are:
- 12-month subscription term (some Dynamics 365 SKUs come with 36-month term).
- Flexibility to cancel subscription and adjust seat count any time with charges prorated.
- Price protection during the subscription term.
The main differences between NCE and legacy CSP offers are as follow:
- Enforcement of cancellation policy – Partner can only cancel with prorated refund within the first 72 hours (the cancellation window), proration calculated daily. After 72 hours, you can no longer cancel a subscription or reduce the number of seats until the subscription anniversary. You will be billed for a full term, even if the customer stops paying for or using the subscription.
- New 1-month term offer – A new 1-month term offer will be available at a 20% price premium for customers who need flexibility to adjust seats.
- Schedule changes at subscription renewal – Partners can turn on or off auto-renewal, and schedule change of seat count at the time of subscription renewal.
- Upgrade – As cancellation is not available outside the 72 hour cancellation window, a full or partial upgrade is available for customer to upgrade to higher tier product during mid-term.
For years, Microsoft CSP was an outlier, not only among Microsoft’s other commercial programs but also in the industry, because subscription terms weren’t enforced with the annual-term offers in CSP. Microsoft will change that with NCE while bringing several new features, including Home Use Program and Multigeo add-ons for Microsoft 365 to Microsoft CSP program in a future release.
What do you need to do?
With Microsoft enforcing the ‘no cancellation after 72 hours’ policy for Microsoft CSP, it is important that you start communicating the change and plan for the move to NCE with your customers. You may also need to update your contract with your customers. Customers will not be able to cancel their subscriptions mid-term as they will need to commit to the full term of payments in any circumstance, whether the subscription is paid up–front or in monthly instalments.
If a customer is uncertain about or unable to commit to using a subscription for the entire term, or maintaining at least the number of seats originally purchased, you can advise them to strongly consider buying the monthly term option, so that they can cancel or reduce seat counts at the end of any month’s term. You can also blend and combine different term subscriptions of the same offer for a more customized solution for the customer.
Speak to your account manager today to understand how the New Commerce Experience will impact your business and your customers.
Partners can take a phased approach to adopting new commerce and can continue selling in the previous CSP platform until March 2022. Key upcoming milestones (subject to change from Microsoft) are as follow:
Mid-January 2022: New subscription for monthly offer monthly billing and annual order annual billing available through rhipe via manual order.
March 2022: NCE available through rhipe PRISM portal.
March 10 2022: New subscription orders only possible on the New Commerce Experience.
July 2022: All legacy CSP subscriptions must be renewed into NCE subscriptions.
October 2022: Microsoft incentives are available only for transactions in the new commerce experience.
To accelerate the adoption of the New Commerce Experience, Microsoft is offering 16.7% discount for monthly term offers from January to June 2022, and 5% discount for annual term offer from Jan to March 2022. To help our partners adopt NCE, we are also offering up to 10% cashback for new M365 E5, O365 E5, M365 E3 and M365 Business Premium subscriptions under NCE for net new CSP customer with rhipe. Speak to your account manager today to find out more.
Partner blog: Coming to the Cloud Solution Provider program: seat-based offers in new commerce
Customer blog: Seat-based offers through the new commerce experience
Operations readiness collection New commerce experience for CSP seat-based offer
Customer messaging documentation: Customer messaging documentation for Cloud Solution Provider (CSP) partners