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Microsoft NCE

In 2021 Microsoft announced changes to the Cloud Solution Provider (CSP) Program, specifically how partners will resell licences.

The New Customer Experience (NCE) came into force in March 2022 along with the price increases Microsoft announced in August 2021, the first substantive price increase in 10 years of Microsoft 365. Over that there have been substantial increases in not only the number of products available within Microsoft 365, but also the functionality of those products.

What are the changes in NCE?

NCE changes the way in which licences are sold and the term of those licences. Under the original CSP model, you were able to purchase licences and increase/decrease the licence count or even cancel them throughout the term of the subscription, this is no longer possible with NCE.

NCE provides different pricing models for the licences:

  • Month by month
  • Annual commitment monthly invoicing
  • Annual commitment annual invoicing
  • Longer terms available for some licences.

Can I change the number of licences under NCE?

As with most things there is no simple yes or no answer to this question, it depends upon which licence model you purchase. On an annual commitment licence, you can increase the number of licences mid-term but you will not be able to decrease the number of licences throughout the term. Any additional licences purchased will run until the end of the existing commitment period.

If you purchased the licence on the month by month model, then you can increase/decrease and cancel the licences, either:

  • Within 72 hours of the initial purchase OR
  • At the end of the billing month

The ability to maintain this flexibility and increase/decrease the licence count does come at a premium though, there is a 20% increase in the licence cost for month by month.

Can I cancel the licences part way through the commitment?

No, once the first 72 hours have elapsed after the subscription starts, there can be no changes or cancellations to the licences other than increasing the licence count, even if the licences are no longer required you will be liable for the payment of that licence.

When does this come into force?

NCE started in March 2022, if you have taken out a new subscription through GNU Consulting you will already be in NCE. If however, you had an existing subscription prior to March 2022, then your licencing will change from February 2023 onwards.

Need to know more?

If there is anything further you need to know, then please email or give us a call.

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