Microsoft’s Cloud Solution Provider (CSP) program continues to evolve as they adapt to support the constantly shifting needs of today’s businesses. As part of their investment in the CSP program, Microsoft has been working to reduce licensing complexity and costs, as well as provide flexibility to support a range of client purchasing scenarios. To achieve this, Microsoft launched the New Commerce Experience (NCE) for Microsoft Azure in 2019 – and in fall of 2021 will be expanding NCE to include Microsoft 365, Dynamics 365, and Power Platform.

 

As your Microsoft experts, the Pax8 Microsoft team is here to help you stay up-to-date on the latest changes and updates to the CSP program so that you can take advantage of all available features, benefits, and opportunities.

 

Read below to learn more about what NCE means for you.

 

What is NCE?

The New Commerce Experience (NCE) ‘per seat’ model for Microsoft 365, Dynamics 365, and Power Platform subscriptions is the latest in the evolution of their CSP program. It provides re-sellers with new tools to simplify and manage subscriptions.

 

Microsoft Announcements:

 

– Partner Center — Microsoft Docs | August 2021 announcements: New commerce experience for Microsoft 365, Dynamics 365, Power Platform, and Windows 365 seat-based for breadth motion

 

– Microsoft Partner Center Blog | Coming to the Cloud Solution Provider program: seat-based offers in new commerce

 

Dates and Deadlines

– October 1, 2021: NCE for Modern Work and Dynamics will reach general availability for indirect providers to offer to CSP re-sellers.

 

– March 1, 2022: All subscriptions for Modern Work and Dynamics will be required to be procured through the NCE Platform.

 

– March 1, 2022: There will be a 15% price increase for all M365 SKUs.

Enterprise: Office 365 E1: $10 (from $8), Office 365 E3: $23 ($20), Office 365 E5: $38 ($35), Microsoft 365 E3: $36 ($32).

SMB: Microsoft 365 Business Basic: $6 (from $5), Microsoft 365 Business Premium: $22 ($20).

Nonprofit: No changes to nonprofit pricing or purchasing methods.

Please note we are NOT changing pricing for Microsoft 365 E5, Microsoft Business Standard, or the Frontline SKUs.Please note this price change does impact all public sector customers, worldwide.

 

What Does This Mean for You?

Moving to the New Commerce Experience will help you prepare for future growth thanks to improved revenue predictability, reduced licensing complexity, multiple term options, and features that enable new sales capabilities and operational efficiencies. You can expect:

 

Discounted pricing on annual agreements

Discounted pricing on multiyear agreements

20% fee for monthly subscriptions on top of the 15% price increase

New cancellation policy: Prorated refund for first 72 hours of term

 

New Incentives and Rebates

Also, starting October 1, 2021, Microsoft will be launching incentives for new commerce transactions in the CSP program under the Microsoft Commerce Incentive program (MCI) for direct bill partners, indirect providers, and indirect resellers.

 

More information on these earning opportunities will be available our Pax8 blog upon Microsoft’s release, so keep checking back!

 

The Pax8 Approach

We always want to provide the best purchasing experience for our partners, and we are actively working to launch NCE for Modern Work and Dynamics. The Pax8 launch date for this program is still being determined – we will keep you updated!

 

Once Pax8 launches NCE, to help partners transition clients to NCE, we will have two introductory promotions between October 1, 2021, and March 31, 2022:

 

A 20% discount on the new M365, D365, and Power Platform monthly-term offers to align monthly term to annual.

 

A 5% discount on M365, D365, and Power Platform new commerce annual term offers (which allow partners to lock the clients’ discounted pricing through the end of the one-year term).

 

Please know that you may continue to purchase Modern Work and Dynamics through Pax8 via the current offer until February 28, 2022.

 

What’s Next

The Pax8 Microsoft team will continue to update you as we prepare for this exciting new component of the CSP program. If you have any questions about Microsoft program changes, don’t hesitate to reach out to our team!