Interstellar BSL would like to ensure that you are aware of the changes that Microsoft is implementing on the CSP Licensing Model including Office 365, Microsoft 365, Dynamics 365, and Azure. The new program called New Commerce Experience with some critical points that will affect you as a customer.
What is the New Commerce Experience?
Microsoft is designing the new commerce experience to simplify and streamline how customers buy from Microsoft and to offer them more options for tailoring these purchases to their business needs and goals. It will also make the selling process, requirements, and capabilities more consistent across the Microsoft product ecosystem.
The most important thing is to understand how critical your tenant subscription dates are. A subscription term is determined by the date an order is placed on the Microsoft system. The renewal date is then 1 year from that date. Currently, every subscription has pricing guaranteed for the duration of the 12-month subscription term.
- Cancellation
A new commerce subscription can be canceled only during the first 72 hours of the subscription term.
- Customer billing after the cancellation period
If the subscription is not canceled in the term’s first 72 hours, the customer will be billed for the remainder of the subscription term.
- Addition and reduction of seats
Seat counts can be increased on a subscription at any time, but seat counts can be reduced only within the first 72 hours of the term, or within the first 72 hours after a midterm addition of seats (with the reduction limited to the number of additional seats).
- Premium pricing on monthly term offers
A monthly term subscription will be priced 20% higher than the annual term subscription for the same SKU (for example, an annual term subscription seat that costs $10/month would cost $12/month for the monthly term option).
- Promotional discounts
To encourage the adoption of new commerce in CSP, Microsoft will implement introductory promotional price discounts at 5% on new commerce commercial seat-based subscriptions until June 30, 2022.
Summary
Simply put, it’s the present and future of how Microsoft sells cloud products and services to customers. With NCE, Microsoft is implementing new policies based on commitment. The CSP program will now make provision for monthly, annual, and triannual commitment options on products to provide customers with the ability to choose a commitment, price and billing model that best suits their needs.