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Out with the Old and in with the New, the New Commerce Experience (NCE) on CSP!

The_New_Commerce_Experience_(NCE)_on_CSP

Have you dealt with Microsoft licensing over the past few years? Confused by the different procurement models? Microsoft has simplified this just for you through the NEW COMMERCE EXPERIENCE on CSP. 

Microsoft has introduced 3 key procurement models: 

Breadth Motion Enterprise Motion Self Service Motion
Ideal for customers currently on CSP, or customers between 1 -2400 seats  Enterprise Agreement is ideal for customers with a complex environment and has global requirements  Web direct with Microsoft for both corporate or domestic customers 

Microsoft CSP and the move to NCE, what are my options? 

Option 1: 

  1. Secure your move over to NCE on an annual commit before 1 July 2022 and save up to 20% on extra monthly trade-offs 

Option 2: 

  1. Secure your move to NCE monthly commit, this option attracts a 20% fee on trade-off for flexibility 

With the introduction of the NCE, Microsoft will have a phased approach to get customers over to the new program. The below timelines will assist you to understand the journey of the different phases. 

NCE Timelines 

Jan 1 – March 31, 2022  Annual offer promotion for NCE 
March 10th  All new purchases are done through NCE 
March 15th 2022  Price Increase on certain Office 365 licenses 
July 1 2022  All renewals and purchases are done through NCE 

Key Differences between NCE Annual Commit and Monthly Commit 

Monthly Commit  Annual Commit 
30 Day Term  12-month Term 
Reduce/ Downgrade license in the month for the following month  Reduce/ Downgrade licenses at 12-month renewal date 
Add/ Upgrade licenses during the monthly term  Add/ Upgrade licenses during the 12-month term 
Monthly Payment  Annual Payment 
20% Tradeoff for Flexibility  Limited Flexibility and standard pricing 

Questions? Read on … 

What is NCE? 

New Commerce Experience is a simplified way for businesses to purchase licenses underpinned by a single Microsoft Cloud Agreement (MCA) thus allowing customers to focus on longer commitments for their Microsoft products allowing customers to plan around the procurements and these yearly commitments. 

Key Difference between CSP and NCE? 

Licenses purchased through NCE will have a 12-month commitment term associated with them that can be paid annually upfront. New licenses can be added or upgraded but not reduced or downgraded through the contract term. It is crucial for customers to get the right licenses purchased upfront. 

What if I prefer paying monthly for my licenses, is this possible? 

Yes, however, there is a 20% premium as a tradeoff for flexibility on all licenses. As this is a monthly commitment, you can reduce licenses in the month for the following month or add licenses as the need arises. 

What is the cancelation policy on NCE? 

Monthly Commit – cancel in the month 

Annual Commit – cancel at the end of the 12-month term 

Should licenses be added during the term in error, this can be canceled within 7 days only, after which you would be committed to the licenses for the remaining term as above. 

Can I have a combination of annual Commit and Monthly Commit? 

Yes, you can commit monthly to licenses that change frequently due to many factors, such as contract workers, temporary projects, etc. the rest of the licenses can be purchased on an annual commit. 

Will Microsoft be introducing a longer term than 12-months? 

Yes, Microsoft will be introducing a 36-month option, more details to follow on the Mint website and future blog releases. 

Junaid Essop
Junaid Software Infrastructure Lead at Mint Group is an experienced technology specialist with a demonstrated history of presales-and-account development in the technology industry. With a passion for sales and business disruption through technology, he currently serves as a Software Infrastructure lead at Mint Group company. Entrusted to innovate and evolve the organisation’s vision, he successfully leads customers and partners to digitally transform and assists clients in their cloud journeys ,ensuring compliance, efficiency and simplicity and ensure business value an delivery. Preceding his role at Mint Group, Junaid worked for IT conglomerate, EOH, as the SAM Lead for the Microsoft business for both Commercial and Public Sector customers. Junaid is an Experienced Software Asset Manager , Skilled in Product Management, Wireless Technologies, Voice over IP (VoIP), Unified Communications, and Mobile Communications. Strong finance professional with a IT Diploma focused in Information Technology from JTC.

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