Microsoft has been making lots of changes recently – take their Windows 11 upgrade, for example. With remote work more common, and the overall shift in the past couple of years on how we work, Microsoft continues to make changes to their programs to adapt to these shifts. This includes their cloud services offerings – enter the New Commerce Experience (NCE). Microsoft is making this change to try and predict growth and spend better, and to simplify the cloud subscription process.
What’s different about the New Commerce Experience?
Microsoft’s NCE is a multi-phase, long-term change to their cloud service program, aimed at simplifying licensing, and addressing how customers prefer to purchase. Microsoft initially added the New Commerce Experience for Microsoft Azure in 2019, and in October of 2021 is including seat-based offers in the cloud for Microsoft 365, Dynamics 365, Windows 365 and Power Platform. Agreements can be annual or multi-year for these cloud services. Microsoft will also be implementing a price increase next year.
Important dates and details from Microsoft themselves to note:
– March 1, 2022: All subscriptions for Modern Work and Dynamics require procurement through the NCE Platform.
– March 1, 2022: There will be a 15% price increase for all M365 SKUs.*
– Enterprise: Office 365 E1: $10 (from $8), Office 365 E3: $23 ($20), Office 365 E5: $38 ($35), Microsoft 365 E3: $36 ($32).
– SMB: Microsoft 365 Business Basic: $6 (from $5), Microsoft 365 Business Premium: $22 ($20).
– Nonprofit: No changes to nonprofit pricing or purchasing methods.
– Please note Microsoft is NOT changing pricing for Microsoft 365 E5, Microsoft Business Standard or the Frontline SKUs. Please note this price change does impact all public sector customers worldwide.
*All of the above are priced per user.
What Does this Mean for Your Business?
Microsoft has customer incentives to utilize the New Commerce Experience early, which locks in prior prices. So, you can avoid the 15% price increase if you know your cloud needs now.
Additional pricing items to keep in mind:
- Discounted pricing on annual agreements
- Discounted pricing on multi-year agreements
- 20% fee for monthly subscriptions on top of the 15% price increase
- Windows 365 SKUs will only be available in the monthly term agreement option but will not incur the 20% premium.
While prices may be going up, scalability of cloud options is also increasing. The purpose of the New Commerce Experience is for Microsoft cloud offerings to be available in a way that makes the most sense for customers.
Microsoft continues to provide new information on the New Commerce Experience, so check back on this article for updates.