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Application Support

Microsoft New Commerce Experience and Licensing Updates

I have been working with Microsoft licensing since 2008 and I have seen a lot of updates along the way. This new change, the Microsoft New Commerce Experience (NCE) has been put in place to align the licensing to Microsoft’s other offerings such as Azure, and it sets to bring major changes to the way Microsoft licenses are purchased.  The Microsoft New Commerce Experience (NCE) is being introduced by Microsoft to clients using online solutions.  Ultimately the NCE is a new way of transacting the online licenses which is done currently via Cloud Solution Providers (CSP) like Synergy Technology.   

 

There are several solutions affected with the change to the NCE:  

  • Microsoft 365 Business Basic  
  • Microsoft 365 Business Premium  
  • Office 365 E1  
  • Office 365 E3  
  • Office 365 E5  
  • Microsoft 365 E3  
  • Dynamics 365 solutions including Business Central, Dynamics 365 for Customer Service and Sales (formerly named CRM). 
  • Power Platform  
  • Windows 365  

 

I mentioned earlier that the NCE subscription model has been in place for Azure services and Microsoft has confirmed that the NCE will offer a simplified and flexible purchase experience for customers.  Please note that there is a price increase for some of these solutions, please see our blog here. 

 

The NCE brings 3 subscription models which is a change to the way licenses are purchased via CSP.  CSP is a monthly charge which is paid as you go per user per month.  The 3 new subscription models are:  

 

Monthly Subscription  

This will enable license increase and decrease once a month, on a monthly basis, per full calendar month.  Invoiced per user per month by your partner Synergy Technology.  

 

12-month subscription  

A leaner price per user than the monthly subscription, offering a price protection for 12 months.  The full 12 months is committed to your partner for all users on this subscription.  User counts can be increased daily and only decreased annually.  The licenses can only be cancelled in the first 7 days of purchase or the full term will run for confirmed users. On expiry of the 12-month term there is a 7 days window to decrease license numbers.  

 

36-month subscription (multi-year) 

A leaner price per user than the monthly subscription, offering a price protection for 36 months.  The full 36 months is contractual to your partner for all users on this subscription.  User counts can be increased daily and decreased only every 36 months.  The licenses can only be cancelled in the first 7 days of purchase or the full term will run for committed users. On expiry of the 36-month term there is a 7 days window to decrease license numbers.  

 

The NCE means that clients can still transact these affected Microsoft solutions on a monthly subscription raising and decreasing licenses once per calendar month.  However, there will be a lower price point for the 12-month subscription and 36-month (multi-year) subscriptions, which also offers a price protection for the terms accordingly. The new subscriptions can be purchased by mixing the monthly, 12 monthly and multi-year subscriptions for their licensing needs. For contractors and license flex the monthly subscription may be the best option.  

 

Here at Synergy Technology our account managers are reviewing the renewal dates for our clients.  Due to the complexity of the new commerce experience transition working with a partner like Synergy Technology will save you a lot of time and help you get the Microsoft licensing right.  If your business needs assistance or if you are looking to review your Dynamics 365 or Business Central licensing our consultants are happy to help and advise.  Please contact us here.  

  Monthly 12 Months 36 Months / Multi-Year
Payment Monthly. 20% uplift. Monthly or Annually 12-month commitment. Monthly, annually or Prepay 36-month commitment.
License opportunity changes Increase anytime. Decrease 7 day window each month. Increase any time. 7 day window to decrease on commencement and every 12 months. Increase any time.7 day window to decrease on commencement and every 36 months.
Cancellation Once a month within the 7 day window. On 12-month anniversary within a 7 day window. On 36-month anniversary within a 7 day window.
Pricing 20% increase. 12-month fixed price. 36-month fixed price term.
Benefits Can flex licenses monthly. Price protected for 12 months. Price protected for 36 months.

More Reading 

If you are using on premise licenses take a look at the Dynamics 365 Deprecations and End of Life Support  

 

Looking to upgrade or migrate from on premise licensing to Online licensing?  Click here.

 

Looking to implement Dynamics 365 customer engagement or Dynamics 365 Business Central.  Contact us.  

Thanks for reading,  

 Catherine Carlyle 

Head of Marketing  

8.11.21. 

New Commerce Experience