The New Commerce Experience (NCE) is a simplified customer journey for performing transactions under a consistent and standardised purchase motion. This applies to subscriptions such as Office 365, Microsoft 365, Dynamics 365, Windows 365 and Power Platform.
Effect 1: As a customer, you have the choice of a monthly, annual or three-year contract. What does that mean in concrete terms?
- 1 month
You can change your contract at any time. This option is 20% more expensive than an annual subscription.
- 12 months
You opt for a one-year contract, paying a fixed amount each month in advance. You can only scale up during this year.
- 36 months
If you sign up for three years at once, you pay the same price (monthly or yearly) for 36 months. Again, this option can only be scaled up.
Effect 2: At this point in time, you can make changes at any time. That freedom will largely disappear, as from now on you’re committed to your contract. Although upscaling is possible during the contract period, downscaling is not (both in terms of product type and numbers purchased). You also can’t terminate the contract at any time, which you could do until now. However, you do have the option to cancel the contract in the first 72 hours.
Effect 3: Flexibility vs price. You can also choose to take out several types of subscriptions at the same time, creating a mix of monthly commitment and annual commitment.
The New Commerce Experience isn’t the only big change for licences. Many features have been added to Microsoft’s products over the past eight years, but there’s been no price increase during this period. This will change from March onwards, as Microsoft has announced a price increase for six of their products. The price increase will vary depending on the product, but it will be between 15% and 20%.
Important: This price increase applies to each new contract after 1 March as well as to each contract renewal from the same date.
Price increase on the following products (for all contract types, not only NCE, as well as Enterprise Agreement, MPSA, etc.):
- Microsoft 365 Business Basic
- Microsoft 365 Business Premium
- Office 365 E1
- Office 365 E3
- Office 365 E5
- Microsoft 365 E3
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