Microsoft New Commerce Experience – Decision needed before 3/1/22

So, here is all the Microsoft “information” concerning their new licensing program. First, the fancy new name is New Commerce Experience (always have to change the name to cover price increase). Please remember we are just a Microsoft partner so please don’t blame the messenger. Finally, read below for our translation of the Microsoft statement and what it means for your business in real terms.

FROM MICROSOFT: “On Oct. 14, Microsoft introduced seat-based cloud offers to the New Commerce Experience (NCE) program for Microsoft 365, Dynamics 365, and Power Platform, as well as Windows 365, to streamline and simplify licensing programs. As we approach the general availability release, it is paramount we start planning your licensing strategy. On the NCE programs, all existing month-by-month clients who enjoy a reduction of seats on any given day will have a 20% price increase. Microsoft will not provide pro-rata refunds for the early termination of any subscription in NCE Per Seat outside of an initial 72-hour cancellation window. Coincided with this NCE program are M365 price increases that were announced on August 19 to be in effect on March 1, 2022. This is an average of 15% price increase. The expectation will be that upon choosing on annual term offers, commits for the full term of payments allows to preserve better pricing, whether the subscription is paid upfront or in monthly installments.​”

FROM CROSS COMPUTERS: “First and most important, we will work with all our customers to find what is best for your business. Whether you choose to endure the price increase or migrate away from Microsoft, we will be there to provide support and alternative solutions if needed. We will also do our very best to deliver clear and concise billing so everyone understands the cost and what services they are receiving.

So, here are the options as of February 2022:

1. MAKE NO CHANGES. Every customer has the option to make no changes to their plan. Current plans provide maximum flexibility of cancellation but will incur a minimum of 20% price increase while most predict the final increase will actually be 25-30%.  The keynotes are that each customer can cancel any license at any time and no long-term commitment is required.
2. ACCEPT NEW PROGRAM: Upon acceptance, each company would commit to a yearly program (paid upfront) with no refunds upon cancellation of users. The expectation will be that upon choosing on annual term offers, commits for the full term of payments allows to preserve better pricing, whether the subscription is paid upfront or in monthly installments. This is an average of 15% price increase.
3. MIGRATE AWAY: Each customer has the option to stop using Microsoft software at any point. We have alternative solutions in our catalog and are ready to help. Each customer must understand that their company will lose access to proprietary programs such as Outlook, Powerpoint, and Excel. Conversion and interaction with Microsoft documents and spreadsheets will become more difficult but costs will be reduced. We also expect user training on new software will incur cost and loss of productivity in the short term.