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Everything You Need To Know About Microsoft NCE

What Is NCE?

Up until now, you have purchased Microsoft 365 licenses under what is called “Legacy CSP”. This arrangement has offered a lot of flexibility, allowing you to cancel licenses whenever you like.

Starting March 1st, 2022, Microsoft is launching the “New Commerce Experience”. This program is designed to provide a consistent and standardized purchasing experience.

New Commerce Experience

What Does NCE Mean For You?

Per-license rates will go up, and there will also be changes to monthly and annual commitment structures. Make sure to review the following price increases and other details so you know what to expect on your invoice in March.

How High Are The New Microsoft Rates?

Microsoft 365 Plan Old Rate (per license) New Rate (per license)
Business Basic $5 $6
Business Premium $20 $22
E3 $32 $36
Office 365 E1 $8 $10
Office 365 E3 $20 $23
Office 365 E5 $35 $38

What Options Do You Have?

  1. Monthly: While providing more flexibility, this commitment comes with a 20% premium fee (in addition to the rate increases).
  2. Annual: Both prices and quantity are locked in the full term at the current price of the commitment date (without the 20% premium fee included in the monthly arrangement).

Annual Or Monthly—How To Decide

Key Considerations Annual Monthly
1 month term commitment
20% premium on rates
Optimal flexibility
No price lock
Ability to upgrade mid-term
No cancellations or user reductions after 72 hours from purchase
Ability to increase user count
12-month term commitment
Current/legacy rates available
Price locked for term

Monthly Subscriptions Available:

  • Microsoft 365 Apps for Business
  • Microsoft 365 Apps for Enterprise
  • Microsoft 365 Business Basic
  • Microsoft 365 Business Premium
  • Microsoft 365 Business Standard
  • Microsoft 365 E3
  • Microsoft 365 E3 – Unattended License
  • Microsoft 365 E5
  • Microsoft 365 E5 without Audio Conferencing
  • Microsoft 365 F1
  • Microsoft 365 F3
  • Office 365 E1
  • Office 365 E3
  • Office 365 E5
  • Office 365 E5 without Audio Conferencing
  • Office 365 F3
  • Power BI Pro
  • Visio Plan 1
  • Visio Plan 2
  • Power BI Premium Per User
  • Power BI Premium Per User Add-On
  • Windows 10/11 Enterprise E3
  • Select Dynamics 365 offers
  • Windows 365 Business
  • Windows 365 Enterprise

All other products are available as an annual subscription only.

Important Dates To Keep In Mind

  • March 1st, 2022: Four Enterprise SKUs, and two SMB SKUs are increasing in price as noted in the chart above.
  • June 30th, 2022: All new licenses will need to be purchased through the NCE (and will be subject to term commitments and a 20% premium for monthly subscriptions).
  • July 1st, 2022: All term renewals must be renewed through the NCE.
  • February 1st, 2023: All remaining subscriptions must be moved to the NCE.

What You Need To Do Now

If you’re ready to lock in your current Microsoft 365 licensing for a 12-month term on NCE beginning March 1, 2022, connect with the GiaSpace team.

Do you need to discuss this further? Schedule 15 minutes with our team to go over the changes and determine the right course of action for your organization.

Thank you for your time and cooperation as we navigate these changes together.