This month (October 2021), Microsoft introduce the New Commerce Experience (NCE), which will affect Microsoft 365, Dynamics 365 and Power Platform licensing. Microsoft is making these changes to promote a greater level of standardisation across their licensing offerings, bringing business apps licensing in closer alignment to Azure Subscriptions.
As a Microsoft Business Partner, selling as a Cloud Solution Provider (CSP), QGate has no control over these changes. We are, however, committed to working with our customers to support them to choose the license options that best suit their requirements and minimise costs.
For existing customers, current licensing will still be available for subscription renewals until March 2022, when previous subscription options will be removed. New customers will only have access to Microsoft New Commerce Experience terms from October 2021 onwards.
Summary of Changes
- Enforcement of the License Subscription Term. Previously the Annual Term was not technically enforced, meaning that a subscription could be ceased or reduced before the end of the Annual Term. NCE will not allow cancellation or reduction of count before the end of the subscribed term.
- Alongside Annual Subscriptions, two new Subscription Terms are now available: Monthly and 3 Year. As might be expected, the flexibility offered by the Monthly Term is reflected in a higher price than offered on the Annual Term. Likewise, the 3 Year Term offers the benefit of longer-term price stability.
- Cancellations will only be available within 72 hours of being subscribed. This means changes should be considered ahead of renewal so as not to miss the window.
- Payment will need to be made for the full term at the beginning of the term and when the quantity is increased on NCE terms.
What does this mean for QGate Customers?
To minimise impact, we recommend that our customers work with us ahead of their renewal date to review the level of confidence of their license terms needs. For example, it may be that customers opt for a blend of Annual Term for core licenses and a number of license seats on a Monthly Term for flexibility.
To discuss how these changes will affect your subscription renewal, please contact your QGate Account Manager or click here to contact us.