Microsoft NCE New Pricing Update

Feb 04, 2022

Microsoft NCE New Pricing Update

Microsoft has announced they are making changes to how it licences its products. In this article, you’ll find out precisely what you need to know about the changes and what you can do to ensure there are no bumps in the road when the rollout happens.

What is it?

The New Commerce Experience (NCE) is the latest pricing model for Microsoft 365, Dynamics 365, Windows 365, and Power Platform subscriptions. NCE was designed to reduce complexity in billing processes and provide cost savings for longer-term subscriptions.

What does this mean to you?

NCE (or New Commerce Experience) will change how you purchase Microsoft services such as Microsoft 365. Through NCE, you will have the option of either an annual or monthly subscription (monthly subscriptions are at premium prices), and these prices will differ from previous subscriptions.

You can also have mid-term upgrades. Microsoft now defines available upgrade paths; please contact us to discuss possibilities.

Based on the product itself, prices will change on certain Microsoft products, varying between 8 to 25%.

An example of some of these products (also known as SKU’s) are:

  • Microsoft 365 Business Basic
  • Microsoft 365 Business Premium
  • Microsoft 365 E3
  • Office 365 E1
  • Office 365 E3
  • Office 365 E5
  • Microsoft 365 Business Premium Secure
  • Microsoft 365 Business Basic Secure
  • Microsoft 365 Business Standard Secure
  • Project Plan 1-3
  • Visio Plan 1-2

Important dates for the diary

1st March 2022:

New pricing plan rollout takes effect for existing contracts.

10th March 2022:

Any brand new subscriptions will be through NCE licences.

Are there any benefits to the restructure

We understand that it’s not ideal that Microsoft is increasing prices. TechCare always strives to keep our customer’s costs down, and we’ll continue to work with businesses like yours to do so.

However, with developments to Microsoft’s array of products over the past few years (such as Teams), there was always potential a price increase could happen.

However, not all is lost. There are some benefits to this restructuring, such as:

  • Cost savings and price locked for long-term contracts
  • It gives you greater flexibility and choice in how you purchase your Microsoft products
  • Allows you to think strategically as to how to enable the growth of the business over the long term
  • Products can be upgraded midterm
  • You can make subscription seat increases at any time
  • Priced in line with the current legacy pricing (Certain products will have a price increase after 1st March)

Microsoft NCE price preview for our customers

A member of our team with be in touch with you w/c 7th Feb 2022 to provide you with prices in line with these increases.

Can I talk to someone about this?

Yes, of course. The price increase is not effective until the 1st March 2022, and If you’re coming to the end of your current agreement and want to discuss the price increases, please contact our sales team at call 0333 015 5102.