A change in procurement model is coming for organisations that procure their M365 licensing via their Cloud Service Provider (CSP). Microsoft recently announced the latest evolution of the CSP program, the New Commerce Experience (NCE), which is being enforced for all new subscriptions from March 2022.
This NCE pricing model will impact how user organisations purchase all Microsoft online services such as Microsoft 365. It is designed to reduce license complexity and provide cost savings for longer term commitments, introducing additional features to make CSP offerings comparable to the long-standing Enterprise Agreement (EA), while offering more flexibility to customers that don’t want the perceived inflexibility of an EA three year term.
From 10th March 2022 all new customer subscriptions will be agreed through NCE and renewals of existing services by 30th June 2022 will be subject to the NCE terms. Your CSP will be transitioning your existing subscriptions to the new commerce experience, and there are introductory offers and discounts available for those transitioning earlier in the model’s transition window.
Pricing models will change, and customers have a choice of monthly, annual or 3-year commitments with different pricing options dependent on the length of commitment.
Customers need to be confident of their licensing usage and requirements, removing or recycling unused subscriptions and addressing any over licensing, prior to signing up for longer term incentivised pricing. APPtechnology offer a free Health check of your current M365 usage, to ensure that you can approach this change to the New Commerce Experience with confidence.
Using tooling we analyse your organisations current usage levels for Microsoft 365 and identify how your subscription licensing can be improved, while also identifying gaps in your organisation’s product take-up in comparison to your peers. Setup takes 30 minutes, your Report is available the same day, and is available free of charge. There is a SaaS service available if following the Health Check output, should you wish to continue to monitor and optimise your M365 licensing, but there is no obligation to commit prior to your Health Check.
If you would like to discuss the process, availability or the typical levels of M365 cost improvements that we see across organisations, then please reach out to APPtechnology via our License Optimisation page at Full Office 365 License Optimisation Service.