The Microsoft New Commerce Experience (NCE) is on the way • Blisstech Solutions

Microsoft is introducing what it calls a New Commerce Experience (NCE) in 2022, with changes to licensing terms and pricing for Microsoft 365.

This will mean fairly big, and potentially expensive, changes for business customers who have Microsoft 365 licences.

The changes are complex and can be confusing, so let’s break it down:

What is changing with Microsoft New Commerce Experience (NCE)?

A drawing of a contract

Currently, customers using Microsoft 365 can purchase licenses directly from Microsoft or through a Microsoft partner, a company like Blisstech. Businesses can buy a flexible subscription, which means they can cancel at any time, or commit to a 12 contract.

If you buy direct from Microsoft, the flexible monthly price is around 20% more expensive than if you commit to a 12-month contract.

However, Microsoft partners are able to offer the flexible option at the same price as the 12-month contract option, which is exactly what Blisstech does.   It’s a bit like getting a mobile phone directly from the network or finding a better deal by going through a third-party phone shop.

Microsoft wanted to level the playing field so that partners have to offer the same pricing structure as Microsoft.

Under the NCE, new licences will be offered at a fixed price, wherever you get them from, and the more popular flexible options will be 20 per cent more expensive.

In addition to this, there will be variable price rises for the following licenses.

Current ERP until 1st March RRP from 1st March (12-month contract) RRP from 1st March (Monthly contract)
Microsoft 365 Business Basic £3.80 £4.50 £5.40
Microsoft 365 Business Premium £15.10 £16.60 £19.92
Office 365 E1 £6.00 £7.50 £9.00
Office 365 E3 £17.60 £20.20 £24.24
Office 365 E5 £30.80 £33.40 £40.08
Microsoft 365 E3 £28.10 £31.70 £38.04

EDIT: These are confirmed monthly price increases as confirmed by Microsoft in Feb 2022.  Please note that these are costs for the licenses only and do not include any management wraparound.

Who will it affect?

This is only affecting business customers who buy Microsoft 365 licences.  This is everyone from sole traders up to companies with thousands of employees.

It won’t affect home users.

Why is it changing?

Microsoft’s 365 pricing has not changed for years despite a huge amount of features being introduced.  In that respect the price rise is probably overdue.

In addition to this, Microsoft wants to align the pricing structure and terms between itself and partners. The costs will be the same whether you buy direct from Microsoft or from a partner.

When is it changing?

A photo of an hourglass with red sand

The new structure is being introduced on 1st March when all new subscriptions and renewals will be subject to the license price increases.

From the 10th of March, any new subscriptions must be purchased via NCE and are then subject to the 20% increase for flexible monthly licensing.

Existing subscriptions will remain on the old terms until 1st July or until the renewal date (whichever is later) when they must be moved over to the NCE.

Existing licences expiring between 10th March and 30th June can be renewed on the old terms (legacy) and put off the change for a further 12 months.

There is the opportunity to save money as if you chose to move over to NCE early, between 8th Feb and 1st March 2022, you can get a 5% discount on licenses for 12 months.

To summarise this:

8th Feb – 1st March – Opportunity to move to NCE early and take advantage of a 5% discount.

1st March 2022 – Prices increase.

10th March 2022 – New subscriptions will be subject to NCE pricing and terms from this date

1st July 2022 – All existing subscriptions will be migrated to NCE when the subscription renews.

What should you do next?

People sitting at a computer in discussion

We appreciate this is very confusing; it has been hard for us to understand it so we feel your pain!

Simply put, with NCE there are some decisions for businesses to make and deadlines they need to make them by.

Some companies will be looking for a mix of flexible and fixed-term licences, for example, those with a workforce made up of some short-term or seasonal workers and others on long-term contracts.  This is absolutely possible, but to meet your businesses requirements it is important to plan and understand how many fixed-term and how many flexible (but more expensive) licenses you need.

For some companies, these changes may mean a big increase in what they’re paying for Microsoft 365 licences, so it’s important to plan ahead and identify any potential savings.

At Blisstech Solutions, we can help you investigate all the options and plan for the best possible option for your business.  We will also be contacting our existing customers to inform them of the renewal dates and the options available to them.

Whether it’s flexible, fixed-term or a mixture of the two, we’ll help you make sure you aren’t spending more than you need to.

Get in touch now to find out more.

 

More Content

Man with magnifying glass

Cyber Essentials: A Guide to CE and its Benefits

Many people have heard of Cyber Essentials (CE), but do you know what it is and what benefits it can bring to your business? This article will discuss what cyber essentials is and how it can help your business and the role that a Cyber Essentials assessor plays in...
You’ve heard of Copilot… but what is it?

You’ve heard of Copilot… but what is it?

You might have heard about Microsoft Copilot, but what is it? And will it really make a difference to your workday or business? We explain it all here.

How to use footnotes and endnotes in Word

Tech Tip: How to use footnotes and endnotes in Word

This Tech Tip is another tip for Microsoft Word. If you use Word to write documentation, contracts or any other type of detailed document, then this tip is for you. Usually, when you write such a document, you may need to expand on certain sentences without making the...
Blisstech - Top M365 Tools - Blog image

Unlock the Hidden Productivity Gems within Microsoft 365

Microsoft 365 is a cornerstone for many businesses, but its vast potential often remains untapped. While applications like Word, Excel, PowerPoint, and Teams are widely used, there's a treasure trove of productivity-enhancing tools waiting to be discovered. Embark on...
Microsoft’s browser takes back the Edge with streamlined settings

Microsoft’s browser takes the Edge with streamlined settings

Trying to find your way through the Settings menu in Microsoft Edge might leave you overwhelmed but a new update is about to make it easier. Here we tell you how.

Which ransomware payment option is best? (Hint: none)

Which ransomware payment option is best? (Hint: none)

Cyber criminals are giving you more options when it comes to paying your way out of a ransomware attack. Our advice remains the same though. Find out what that advice is here.

New member of staff… new security risk?

New member of staff… new security risk?

New employees are a prime target for cybercriminals. They don’t know the ropes yet, and the chances of them becoming a victim are high. Here’s what smart businesses are doing about this problem…

Tech Tip: How to create a scheduling poll using Outlook

Welcome to a new Tuesday tech tip video where we will be exploring how to create a scheduling poll using Outlook. You know what it's like when you are trying to get everyone together for a meeting. Trying to find a time that suits everyone can be a real pain! There...
“Ask Copilot” is coming to your Taskbar (but only if you want it to)

“Ask Copilot” is coming to your Taskbar (but only if you want it to)

What if your computer could understand what you mean, not just what you type?
Microsoft’s testing something new in Windows 11 that could completely change how you search, click, and get things done.
It’s smart. It’s optional. And it might save your team a lot of time…

KEMP Virtual Santa Fun Run Logo

Blisstech Solutions sponsors KEMP’s Virtual Santa Fun Run

In 2020 everything has been different, and the traditional KEMP Hospice Santa Fun Run is no exception.  In a year where so many charity and participation events have been cancelled, it is great to see that this iconic local event is going ahead, albeit in a very...
Share This
Contact
Love Lane
Cleobury Mortimer
Shropshire DY14 8PE

01299 382 321
[email protected]
Copyright © Blisstech Solution Ltd
Registered No: 08125391 VAT No : 307 5490 05