What is NCE ?
The New Commerce Experience (NCE) is the latest pricing model for Microsoft 365, Dynamics 365, Windows 365, and Power Platform subscriptions.
NCE was designed to reduce complexity in billing processes and provide cost savings for longer term subscriptions.
What doe NCE mean for you and your business ?
NCE will change how you purchase Microsoft services such as Microsoft 365. Through NCE you will have the option of either an annual or monthly subscription, and these prices will differ from previous subscriptions. You can also have mid-term upgrades.
How will the new NCE subscriptions be priced?
Annual commitment will be aligned to current pricing in legacy, with monthly commitment being priced at a 20% premium.
It’s worth noting that, separately to the introduction of NCE, Microsoft are increasing the prices (between 10-25% subject to confirmation Feb/March 2022) of the following M365 SKUs from March 1st 2022: Microsoft 365 Business Basic, Microsoft 365 Business Premium, Office 365 E1, Office 365 E3, Office 365 E5 and Microsoft 365 E3.
The increases are applicable for new customers and customer renewals.
Why do monthly term subscriptions cost more than annual-term ones in NCE?
Microsoft advise the new monthly term subscriptions in NCE are billed by Microsoft at a 20% higher price (subject to confirmation Feb/March 2022) than annual-term offers of the same type because they give the ability to cancel at any time without incurring additional payments for the remainder of an annual term.
The premium pricing is in line with standard practice in the Microsoft Web Direct program and in other industries – for example, an airline ticket with a higher price that’s refundable instead of a lower-priced non-refundable ticket.
What are the refund policies for cancellation?
Microsoft advise a prorated refund of the initial subscription payment only within the first 72 hours after the order is placed or renewed.
After 72 hours of the term, the subscription cannot be cancelled and payment for the remainder of the term must be made.
Can I adjust the amount of seats on an annual commitment in NCE?
Microsoft state within 72 hours of purchase you can reduce the amount of seats, but once this time has elapsed the seat count is locked for the term with only additions allowed.
If you make additions during this time, you won’t be able to reverse the changes .
At renewal of the term the 72 hours period for cancelations/seat reductions will come back into effect and you can make any changes. You will be able to schedule these changes in advance to automatically apply at renewal.
Please note that for monthly term subscriptions, the seat count can be increased or decreased at any time (with decreases taking effect the following month).
| NCE Subscription Options | NCE Subscription Options | |
| Monthly | Annual | |
| Term Commitment: 1 full month | x | – |
| Priced at a premium above the Annual subscription option (20%) | x | – |
| Offers the most flexibility | x | – |
| No price lock | x | – |
| Monthly term offers will not be available for all Microsoft products | x | – |
| Windows 365 SKUs will only be available on monthly term offer, but not be subjected to 20% premium | x | – |
| Can be upgraded midterm | x | x |
| Enforced cancellation policy: No Cancellation or seat reduction allowed in term outside of initial 72 hours | x | x |
| Subscription seat increases can be made at any time | x | x |
| Term Commitment: 12 months | – | x |
| Priced in line with the current legacy pricing (Certain products will have a price increase after 1st March) | – | x |
| Price locked for the entire term | – | x |
| No annual option for Windows 365 SKUs currently | – | x |
Available Monthly Subscription Products
Annual will be available for all products, but monthly will only be available for a selection.
Please see the list below: (subject to change)
- Microsoft 365 Apps for Business
- Microsoft 365 Apps for Enterprise
- Microsoft 365 Business Basic
- Microsoft 365 Business Premium
- Microsoft 365 Business Standard
- Microsoft 365 E3
- Microsoft 365 E3 – Unattended License
- Microsoft 365 E5
- Microsoft 365 E5 without Audio Conferencing
- Microsoft 365 F1
- Microsoft 365 F3
- Office 365 E1
- Office 365 E3
- Office 365 E5
- Office 365 E5 without Audio Conferencing
- Office 365 F3
- Power BI Pro
- Visio Plan 1
- Visio Plan 2
- Power BI Premium Per User
- Power BI Premium Per User Add-On
- Windows 10/11 Enterprise E3
- Select Dynamics 365 offers
- Windows 365 Business
- Windows 365 Enterprise
Pricing Changes
Important Dates for the diary
1st March 2022 – Price increase in March on 6 SKUs (Read on for details)
10th March 2022 – Any brand new subscriptions will be through NCE
1st July 2022 – Second NCE enforcement for existing subscriptions
What are the Price Changes
From the 1st of March, prices will be changing on certain SKUs. Please see the price percentage changes listed below:
SMB:
Microsoft 365 Business Basic (+20%)
Microsoft 365 Business Premium (+10%)
ENTERPRISE:
Microsoft 365 E3 (+13%)
Office 365 E1 (+25%)
Office 365 E3 (+15%)
Office 365 E5 (+9%)
NCE in a Nutshell
This is the first price rise from Microsoft in about 10 years, however Hightrees isn’t happy with the changes for the following reasons :
If you pay monthly, either for budget purposes or for flexibility with your licences, you are getting a double price hike.
If, for whatever reason, you decide you need to downgrade your licences, if you are on an Annual scheme, this will not be possible.
You are liable for the term of your licence, meaning that HIghtrees may not be able to offer monthly payments without running credit checks against your business.
Hightrees, as well as many other Micorsoft resellers, have expressed our concerns and the impact these changes will have on many micro and small businesses.
We are still waiting for the final confirmation of the changes so we can let our clients know the impact to them.
