The arrival of Microsoft New Commerce Experience (NCE) has changed the way contracts are bought and managed through the Cloud Solution Provider (CSP) program. With Microsoft NCE, complexity is reduced, there is more choice, contract options are more flexible and costs are saved on long-term licenses. Additional features make CSP a comparable alternative to the well-known Enterprise Agreement (EA).
With Microsoft NCE, all Microsoft cloud solutions are available in a monthly and annual payment model (1 to 3 years). The solutions remain exactly the same, only you have to choose between a monthly or annual model when purchasing. It is possible to combine both models in one Microsoft tenant.
What changes for you and your customers?
With Microsoft NCE, the pricing of cloud solutions will change. Monthly solutions will be priced based on the recommended retail price and discounts will also be based on that price. These prices are 20% higher than annual licenses.
Prices are changing for the following cloud solutions:
- Microsoft 365 Business Basic
- Microsoft 365 Business Premium
- Office 365 E1
- Office 365 E3
- Office 365 E5
- Microsoft 365 E3
View the complete Microsoft pricelist for up to date pricing.
License options for NCE
The monthly model remains flexible and you can both up- and downgrade during the month, where with annual licenses you can only increase the number of seats and/or upgrade the solution within the contact period. Monthly licenses are 20% more expensive compared to annual licenses.
Unlike the old 12-month CSP contract, with Microsoft NCE you have the option to create an annual contract and then choose for a monthly or annual payment.
With the 12-month contract, the price remains fixed throughout the term, with the advantage that you keep the current contract price even with any price increases that occur during the contract period. As mentioned earlier, with an annual license, the number of seats can only be increased, not decreased. It is also possible to upgrade to more comprehensive solutions.
For organisations that fluctuate a lot in the number of employees, it is interesting to combine both models in a Microsoft tenant. Use the cheaper annual licenses for permanent employees and activate monthly licenses for temporary workers!
|Action||CSP (legacy)||NCE yearly||NCE monthly||Additional information|
|Pause contract||Yes||Yes||Yes||Billing continues after pause in NCE|
|Billing pause on pausing contract||Yes||No||
|Yes||Yes||Yes||Cancellation in NCE as described in data retention policy|
|Cancel contract||No, only pause with removal 90 days after expiry period ends||Yes, within 7 days of start contract||Yes, within 7 days of start contract||Cancellation in NCE as described in data retention policy|
|Cancel in the first 7 days||No||Yes||Yes||After 7 days no cancellations in NCE|
|Cancel after the first 7 days||No (cancellation is not possible in legacy)||No||No|
|Pro rata refund||Yes, When paused after more than 30 days after sale / renewal||Yes, within 7 days after entry into the contract,
(Pro rata calculated daily)
|Yes, within 7 days after entry into the contract,
(Pro rata calculated daily)
|Upscale seats intermediate||Yes||Yes, possible anytime||Yes, possible anytime||Increase seats can be cancelled or reduced
during the first 7 days after the adjustment has been requested
|Lowering seats intermediate||Yes||
Manual lowering of seats is possible during het cancellation time (within 7 days of contract commencement, either on first purchase or renewal)
|Manually lowering of seats is possible during the cancellation window (within 7 days of contract start date, either on first purchase or renewal)||Lowering seats is not possible outside the cancellation window (7 days after the start of the contract, either on first purchase or renewal)|
|Lowering seats at renewal||Yes||Yes||Yes||Lowering seats is possible manually in NCE within the first 7 days after the renewal takes effect|
|Interim change in billing frequency||Yes||No||No|
|Scheduling changes (SKU upgrade, seat number, billing frequency, term) at renewal||No||Yes, can be done upfront||Yes, can be done upfront|
|Interim SKU upgrade within the same product category (e.g. E3 to E5)||Yes, for MKB SKU’s||Yes, for MKB and Enterprise SKU’s||Yes, for MKB and Enterprise SKU’s||No deadline is set for the user to transfer licenses from E3 to E5, but the user is shown a warning in Microsoft 365 Admin Center that there is a risk of noncompliance|