Microsoft’s New Commerce Experience for CSP: What you need to know

Microsoft continues to evolve for customers as it looks to support the everchanging needs of end users and businesses alike. Over the past year we’ve seen example after example of this, with major announcements aimed at transforming the way organizations work with Windows 365 and Windows 11, to simplifying its approach to licensing with its 15-month transition from Microsoft Open Licensing Program (MOLP) to the Cloud Solutions Provider (CSP) program.

And as we close out the year, Microsoft remains committed to providing a more streamlined experience for customers to acquire and manage their cloud and software spend.  To achieve this, Microsoft is expanding its CSP program by introducing   New Commerce Experience (NCE) offers for Microsoft 365, Dynamics 365, Windows 365 and Power Platform.

Like a lot of the recent changes and announcements we’ve seen from Microsoft throughout 2021, NCE is part of a transformational journey aimed at addressing customer needs.

Everything you need to know about the NCE update for CSP

Subscription Term Options

Currently, CSP offers a 12-month subscription term with the option to pay annually or monthly. With the introduction of NCE, there will be 12-month and monthly subscription terms as follows:

• Monthly Subscription Term: This monthly subscription term provides customers with the ability to only commit and pay on a monthly basis, thereby providing additional flexibility to address the needs of their organization.
• Annual Subscription Term: Consistent with the current CSP offers, customers can commit to 12-month term which offers either an upfront or monthly billing option.

Premium Pricing for Monthly Subscriptions

With the introduction of the monthly subscription term, there will be a 20% premium above the annual subscription cost.

While the NCE monthly terms option comes at a premium, you are still able to take advantage of monthly billing via the annual subscription term.

Note: Microsoft will be offering a promotion for their NCE offers starting in January.

Enforced Cancellation Policy

NCE will offer a 72-hour cancellation window for subscriptions added.. If those subscriptions are not cancelled within 72 hours of being provisioned, they must be paid for the remainder of the subscription term (monthly or annually).

Seat Reduction Policy Change

The ability to reduce seats is aligned to the 72-hour cancellation policy. For a customer to reduce seats, that request must occur in that first 72 hours. This policy applies to the initial subscription count as well as additional seats added to that subscription.

Timeline

January 2022

• General Availability of seat-based offers under NCE
• Introduction of a promotional offer on all NCE Annual subscriptions of a 5% discount. This promotion applies to all seats added per subscription with a cap of 2400 seats
• Introduction of a promotional offer on all NCE Monthly subscriptions to match the current legacy annual cost (this promotion applies to all seats added per subscription with a cap on 2400 seats)

March 2022

• Requirement to purchase NCE offers for all new subscriptions
• Retirement of the 5% discount on NCE Annual subscriptions

June 2022

• Requirement to renew existing subscriptions in to NCE
• Retirement of 20% discount on monthly NCE subscriptions

June 2023

• Retirement of all existing CSP subscriptions in to NCE

While this may seem like a lot of changes, a few key components are remaining the same:

Product Availability

The same products available on legacy CSP will also be available on the NCE.

Support

You will still enjoy the same level of support from your knowledgeable and dedicated SHI CSP support team.

We know change is difficult, but it really is the only constant – and as always, SHI is here to help you navigate through these changes and make the transition as smooth and headache free as possible.

If you have any questions, we encourage you to reach out to your dedicated SHI Account Executive or contact us directly. In the meantime, learn more about the benefits of CSP and why organizations choose to partner with SHI.