Introducing the Microsoft New Commerce Experience (NCE) and what it means for Dynamics 365 Customers
Microsoft has recently announced changes to how customers purchase and manage their Dynamics 365 and Power Platform licenses.
Microsoft’s New Commerce Experience (NCE) means that customers are now able to choose from a 1 month, 12 month or multi-year subscription term.
Key Dates for the Transition to Microsoft New Commerce Experience
- 10 January 2022 – Microsoft New Commerce Experience (NCE) launches.
- 10 January to 31 March 2022 – Existing customers who renew between the 10 January and 31 March 2022 can benefit from a 5% discount on their first year of an annual term subscription – please contact us for further information.
- 30 June 2022 – From the start of July, all new and renewing subscriptions will have to be purchased through NCE. This may mean a change to either the license term or pricing for some current customers.
Important Changes to Microsoft Dynamics 365 Licensing
- Cancellation Policy
All subscriptions will be offered on a 72 hour cancellation window. Once outside of this window, subscriptions cannot be cancelled or reduced mid-term and refunds will not be available. Additional licenses may be added at any point during the term.
- Flexibility / Changing Requirements
If a customer needs to increase or decrease license seats on a regular basis, they can choose a Monthly subscription term. Monthly licenses are however charged at a 20% higher price than the Annual License and prices are only valid on a per month basis.
If a customer requires flexibility, we recommend a hybrid of different license terms – i.e. a core number of seats on the Annual License Term with remaining seats on Monthly Term subscription to maintain flexibility.
- Payment Terms
Customers who decide to take advantage of the fixed price offered with Annual and Multi-Year subscription terms will be required to pay the cost of the full term at the start of the agreement. For customers who require more payment flexibility, the Monthly subscription term may be more suitable, however this is charged at a 20% higher price than Annual and Multi-Year Terms.
- Price Changes
In addition to launching the New Commerce Experience, Microsoft also announced price increases for Microsoft 365 and Office 365 solutions from 1 March 2022. This price increase reflects the value of the solutions and the added areas of innovation around communication and collaboration, security and automation.
We appreciate that this is a significant change to Microsoft Dynamics 365 licensing. Your QGate Account Manager will be in contact with you shortly to discuss this and help you to decide which license term(s) are the right choice for your business.
If you have any questions in the meantime, please contact us.
