Microsoft's New Commerce Experience (NCE) has emerged as a pivotal innovation, reshaping how businesses approach Microsoft's products and services.
Since its initial rollout for Azure in 2019, and its adoption for seat-based cloud subscriptions in 2022, NCE has fundamentally altered the landscape of software licensing. It offers Microsoft partners enhanced flexibility and strategic control over subscription management.
Understanding NCE is crucial for any business leveraging Microsoft products.
It's not just about adapting to a new subscription model; it's about aligning with a more streamlined, cost-effective way of managing digital tools.
This article delves into the essence of NCE, offering a comprehensive guide on how to navigate this new terrain. From exploring the flexibility in subscription models to understanding the strategic implications of license management under NCE, we cover all you need to know.
Straight from the outset, we’ve covered what the acronym NCE means. Let’s now break down when it was launched, the features it offers to Microsoft partners, and that state of play as we head into 2024.
Microsoft NCE is a significant evolution in how businesses and partners interact with Microsoft's suite of products and services.
Initially launched in 2019, NCE represents a shift towards a more flexible, streamlined approach to purchasing and managing Microsoft subscriptions like Microsoft 365, Dynamics 365, Windows 365, and the Power Platform.
Microsoft NCE introduces several notable features and benefits:
Since its introduction in 2022, NCE has been on a continuous path of evolution, simplifying the complexity traditionally associated with managing Microsoft licenses, for example in allowing alignment of the end dates of subscriptions for more streamlined billing. It also provides cost savings, especially for annual and multi-term subscriptions.
In 2024, the public sector, including Education and Government licenses, will be fully integrated into the NCE, marking a significant milestone in its adoption across all sectors.
NCE simplifies Microsoft’s service offerings in several ways:
Microsoft NCE is a transformative approach, offering enhanced flexibility, simplified billing, and improved service management.
This evolution marks a significant shift in how businesses and partners interact with Microsoft’s offerings, paving the way for more efficient and cost-effective software management strategies.
While most Microsoft subscriptions are now using NCE, the switch is still upcoming for the public sector, as mentioned previously. Here you can learn about the processes and challenges that come with making the upgrade from Legacy.
Migrating to Microsoft's NCE involves several crucial steps, especially for partners managing license-based services like Microsoft 365, Dynamics 365, and Microsoft Intune.
Microsoft has announced some key dates regarding the new NCE segments features rollout.
This process is designed to offer more flexibility and capabilities in managing these services.
NCE represents an opportunity for Microsoft partners to sell subscriptions with more simplicity, while also securing longer term revenue with less fear of sudden churn.
Microsoft's NCE introduces significant changes to the licensing and subscription models for its products, impacting how businesses plan and manage their software needs.
The switch to NCE offers flexibility and control over subscription options, enabling businesses to adapt their software usage more closely to their operational needs.
For instance, the NCE provides three main subscription options: standard monthly subscription, 12-month subscription, and 36-month subscription.
The monthly option offers flexibility without a long-term commitment, allowing businesses to adjust their seat count and plans each month as needed.
Conversely, the 12-month subscription locks in pricing for a year, offering cost savings and protection from price increases.
However, with the added flexibility and efficiency, NCE does come with some stricter rules. Cancellation is only available for the first 72 hours of an agreement, and after this you’ll be billed for your full term. You can suspend your subscription as an alternative but will still be billed.
You’re also unable to reduce your seat count during the term of your agreement. This is worth considering prior to subscription.
With the introduction of NCE, subscription management and billing have undergone considerable changes.
The NCE model emphasizes longer contract terms, with options for monthly, annual, and multi-year terms. While this model includes a monthly subscription option, it comes at a 20% premium, making it less attractive for businesses seeking flexibility.
The NCE model impacts how businesses handle their license counts. Under the new structure, license quantities can only be increased but not reduced during the subscription term, unless canceled within a specific window.
This change necessitates more strategic planning from businesses regarding their license needs to avoid unnecessary expenses.
Microsoft’s partner network is crucial in providing their products to businesses globally and offering ongoing support throughout the length of their subscriptions. We’ll look here at how NCE will affect those partners and what they’ll need to be aware of before NCE becomes fully implemented.
Microsoft partners play a critical role in facilitating the adoption of NCE among businesses.
They help clients understand the new subscription models, guide them through the migration process, and assist in optimizing their license management under the new terms.
Partners are also responsible for keeping their clients informed about the latest changes and opportunities within the NCE framework.
For Microsoft partners, the NCE program offers new incentive opportunities and a more streamlined approach to selling and managing Microsoft products. The benefits for partners include:
However, this also comes with the responsibility of ensuring that their clients' transitions to NCE are smooth and beneficial. Partners need to be well-versed in the intricacies of the NCE model to advise their clients effectively on the best subscription options and strategies for maximizing their investment in Microsoft products.
It requires a strategic approach to software licensing and subscription management, emphasizing the importance of careful planning and understanding the long-term implications of subscription choices.
Businesses and partners alike must stay informed and adaptable to navigate these changes effectively.
By the time 2025 rolls around, NCE should be the standard for purchasing subscriptions from Microsoft. Let’s examine how this will impact businesses now, and in the coming years.
Microsoft's roadmap for NCE indicates a continued emphasis on simplifying and streamlining how businesses manage and purchase their cloud solutions.
Starting in January 2024, all existing commercial plans under the Cloud Solution Provider (CSP) will automatically upgrade to NCE on their respective renewal dates. This transition is part of Microsoft's strategy to address the complexities and costs associated with managing licenses, offering more tailored options for various purchasing scenarios.
The focus is on providing flexibility and supporting a range of purchasing scenarios to enable customers to buy more easily while optimizing costs.
The NCE plan includes term subscriptions that reward loyalty and commitment to Microsoft, standardizing offers and terms.
This shift represents not just a technical migration but a strategic opportunity for businesses and partners in the Microsoft ecosystem to leverage new efficiencies, pricing structures, and subscription models offered by NCE.
As Microsoft continues to evolve its NCE, businesses need to stay proactive, informed, and strategic in their approach to software licensing and subscription management.
This will enable them to leverage the full potential of NCE for growth and efficiency in the ever-changing digital landscape.
Microsoft NCE marks a significant shift in how businesses engage with Microsoft's cloud services and software subscriptions.
Here are some key takeaways to help you navigate and leverage NCE effectively:
In conclusion, Microsoft NCE presents an opportunity for businesses to streamline their cloud services and software subscriptions, aligning with a more modern and efficient approach.
By embracing NCE, your business can benefit from improved flexibility, strategic license management, and partnership opportunities, all of which are key to thriving in the evolving digital landscape.