Microsoft's New Commerce Experience (NCE) is changing how organisations purchase and renew Microsoft 365 subscriptions. If you're approaching a contract renewal, it's worth understanding what's changing and how it affects your business.
What Is the New Commerce Experience?
The New Commerce Experience is Microsoft's updated approach to how businesses buy cloud services. Rather than the traditional annual or multi-year commitment model, NCE introduces a more flexible, monthly billing approach with greater control over subscriptions.
For most organisations, this shift is largely administrative—the products and pricing remain consistent. However, the way you manage and renew your subscriptions will change.
What's Changing?
- Monthly billing: Subscriptions are now billed monthly instead of annual upfront payments. This improves cash flow predictability and reduces the burden of large upfront commitments.
- Flexible changes: You can adjust your subscription quantities and add or remove services on a monthly basis without waiting for an annual renewal date.
- Licensing updates: New licensing options and combinations have become available, giving you more flexibility to tailor subscriptions to your needs.
- Partner relationships: If you work with a cloud solution provider (like Cloudservices), your relationship and contract terms may need to be updated to align with NCE.
Does This Affect My Pricing?
In most cases, pricing remains the same or becomes more favourable. The shift to monthly billing actually works in your favour because it reduces the need to commit to large annual budgets.
However, the transition period does require attention. Some organisations on legacy agreements may see pricing shifts during renewal. This is why it's important to review your terms with your IT provider before your renewal date arrives.
When Does This Affect Me?
Your organisation will move to NCE when your current Microsoft 365 agreement renews. This could be immediate if you're renewing soon, or several years away if you have a longer contract term. Either way, planning ahead is wise.
What Should You Do?
If your renewal is approaching, now is a good time to:
- Review your current usage: Understand which Microsoft 365 apps and services your team actually uses. You may find opportunities to optimise your subscription mix.
- Plan for flexibility: The shift to monthly billing means you can adjust your subscriptions more easily. Plan to review quarterly whether you're on the right plan.
- Discuss transition timing: Work with your IT provider to schedule your NCE transition for a time that works for your budget cycle.
- Understand your new agreement: Take time to review the terms of your new NCE agreement. The structure is different from legacy agreements, so understanding the changes is important.
The New Commerce Experience is ultimately a positive change that gives organisations more control and flexibility. The key is to plan ahead and ensure you're making informed decisions about your Microsoft 365 investment during the transition.
