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NCE changes at a glance explained

Author: Jeremy Redmond | Director of Cloud & Modern Workspace Solutions

Starting January 2022, Microsoft launched its New Commerce Experience (NCE) within its Cloud Solution Provider (CSP) program. With this change, NCE will offer customers new options for purchase of Microsoft 365 licensing. Effective March 10th, 2022 new purchases must go through the NCE program and effective June 1st, 2022 all renewals will go through the NCE program. We will outline some of the changes in the program below.

Monthly Payments with Monthly Terms:

This model is the one most familiar to existing customers in the legacy program. Customers can add or decrease license quantities on the fly on a month-to-month basis. However, this convenience comes at an increase of 20% over an annual agreement. This option is best used for customers who may have a fluctuation of employees from month to month. It is recommended to combine this option with the annual terms option to get the best combination of cost and flexibility.

Monthly Payments with Annual Terms:

With this model, customers will be charged per license per month just like the option above. This option allows upgrading licenses to a higher tier license on the fly such as Microsoft 365 E3 to E5. You can also increase the license quantity at any time however decreasing the license quantity needs to occur on the anniversary data renewal of the initial purchase. This plan does not have a 20% increase in cost so is one of the most cost-effective. It is recommended to use this option if you do not have fluctuation of employees from month to month.

Annual Payments with Annual Terms:

This model follows the same as above however the customer is billed upfront the entire annual term. Some license options have the choice of one-year or three-year options. It is recommended to use this option if you do not have fluctuation of employees from month to month and your company prefers a capital expense over an operational one. 

Cancellation Changes:

If you would like to cancel your licensing agreement this must be done 72 hours from the initial sign-up. If you cancel after this timeframe the term must be paid and there is no pro-rate of terms.

F3 Recommendation:

The recommendation will be unique to your company scenario however in most cases the ‘Monthly Payments with Annual Terms’ will be your best option. This allows you to have the most cost-effective option. In cases where you have a fluctuation of employees, it is recommended to purchase the bulk of licenses with ‘Monthly Payments with Annual Terms’ and combine that with ‘Monthly Payments with Monthly Terms’ allowing you the greatest flexibility and the most cost-effectiveness.

Should I Sign Up Now?

Until March 31st, 2022, F3 Technology Partners is offering a 5% discount for all Annual Term plans for one year. This only applies for the initial year and renewals will occur at the regular rate.

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