What is NCE?

Microsoft is moving to a new licensing model in 2022, called NCE. NCE stands for New Commerce Experience. In this model, Microsoft customers will have to decide whether to pay a 20% premium for flexible monthly licensing or move to an annual licensing contract which is pre-paid annually.

The date this change will impact you depends on the expiration date of your current subscription(s):

  • For existing subscriptions, this change will be required between 7/1/22 & 6/30/23.
  • For new subscriptions, the required move to NCE begins on 3/11/22.

How does the change to NCE licensing benefit me?

  • Pricing benefits for annual term subscriptions that lock in pricing the entire term
  • Multi-year plans for D365 and M365
  • Premium priced monthly subscription that allows cancellation or seat count reduction as needed
  • New Windows 365 Cloud PC (monthly term only at annual pricing)
  • Easier adoption of new products and add-ons available separately
  • Consumption based billing for telco offers and coming soon for additional offers.

What do I need to do right now?

That depends on which licenses you’re utilizing. If you’re using Microsoft 365 licenses (formerly Office 365), Microsoft published price changes that are effective March 1st, 2022, which are listed below. 

  • Microsoft 365 Business Basic  – $5 to $6
  • Microsoft 365 Business Premium – $20 to $22
  • Office 365 E1 – $8 to $10
  • Office 365 E3 – $20 to $23
  • Office 365 E5 – $35 to $38
  • Microsoft 365 E3 – $32 to $36

If you transition to NCE before March 1st, you would be eligible for a 13.5%-30% discount based on your SKUs. This range takes into account current incentives and price increases.

If you’re only using Dynamics 365 licenses, you have time before you transition to NCE. However, if you are interested in the 5% discount offered by Microsoft, contact TrellisPoint today as that incentive expires on 3/31/22. As a reminder, NCE licensing will require annual pre-payment, or a premium charge will be added to your cost in order to maintain your flexible monthly licensing.


Can you help me figure this out?

Absolutely! Since Microsoft announced this information we’ve spoken with many of our customers and helped them review their current licensing in light of the upcoming changes. So please contact us so we can help you determine the most cost-effective way to proceed.

A note about cancellation: Microsoft offers a seven day cancellation window after signing up should you decide not to proceed with NCE licensing.

Contact us today to learn more!

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