Microsoft is making significant changes to how seat-based offers (subscriptions) are subscribed under the Cloud Solution Provider (CSP) agreement. These changes are called the New Commerce Experience (NCE).
To understand what these changes mean for you and your customers, watch our Microsoft Alliance Manager discuss the changes in this recent webinar. We’ve also included key FAQs below. If you would like more information or have a question that we’ve not covered, please contact us and a Microsoft specialist will be in touch.
Seat-based subscriptions impacted by the changes include:
- Microsoft 365
- Dynamics 365
- Power Platform
- Windows 365
- Associated add-ons
Please note that when we refer to ‘legacy’, we’re talking about the current/existing CSP based offers subscription model.
Indirect CSP New Commerce Experience FAQs
- Which seat-based subscriptions does NCE impact?
- Will there be any changes to the billing cycle?
- Will there be changes to the available subscription terms?
- Can a customer commit to annual terms and still pay monthly?
- Can a customer increase or decrease my seat count mid-term?
- Can a customer upgrade or downgrade a subscription mid-term?
- Are subscription seat adds pro-rated when adding mid-term?
- When do I need to transition my customers the Microsoft CSP New Commerce Experience model by?
- Will this impact my Microsoft incentive payments?
- Is there an end date for adding legacy subscriptions?
Q1: Which seat-based subscriptions does NCE impact?
Microsoft 365, Dynamics 365, Power Platform, and Windows 365 offers, plus associated add-ons.
Q2: Which seat-based subscriptions does NCE impact?
Yes, the billing cycle will be updated to reflect a beginning of month to last day of month cycle.
Q3: Will there be changes to the available subscription terms?
Yes, as well as continuing with the 12-month commit term, Microsoft will be introducing 1-month and 3-year commit terms for subscriptions.
- 1-month commit term (incurs 20% price uplift vs legacy)
- 1-year (12-months) commit term (same as legacy pricing)
- 3-year (36 months) commit term (currently Dynamics 365 subscriptions only – others expected March 2022)
Q4: Can a customer commit to annual terms and still pay monthly?
Yes, customers can choose to commit to a 1-year or 3-year term and pay for subscriptions monthly. However, they will be unable to decrease seat count or subscription type each month during the commitment period. They can do this at renewal only.
Q5: Can a customer increase or decrease my seat count mid-term?
Customers CAN INCREASE their subscription(s) seat count mid-term with immediate effect and the additional seats will be pro-rated to the original commit term end date.
Customers CANNOT DECREASE their subscription(s) seat count mid-term.
They will need to wait until subscription commit term renewal to reduce the seat count.
Q6: Can a customer upgrade or downgrade a subscription mid-term?
Customers CAN UPGRADE their subscription(s) mid-term (partial/all) with immediate effect and the upgraded subscription will be pro-rated to the original commit term end date.
Customers CANNOT DOWNGRADE their subscription(s) mid-term. They will need to wait until subscription commit term renewal to downgrade/change to a lesser subscription.
Q7: Are subscription seat adds pro-rated when adding mid-term?
Yes, customers can increase their subscription(s) seat count mid-term and the additional seats will be pro-rated to the original commit term end date.
Q8: When do I need to transition my customers the Microsoft CSP New Commerce Experience model by?
Originally planned for 10 March 2022, Microsoft announced on 12 November 2021 that they will extend the period during which subscriptions can be renewed on the legacy CSP platform to 30 June 2022.
Q9: Will this impact my Microsoft incentive payments?
Yes, from the end of 30 September 2022, you will no longer earn incentives for customers remaining on the legacy CSP model. Ensure you’ve migrated customers leveraging Microsoft 365, Dynamics 365, Power Platform, and Windows 365 offers and associated add-ons to CSP NCE subscriptions in advance.
To make the most of the available Microsoft incentives please contact us and one of our Microsoft team will be in touch.
Q10: Is there an end date for adding legacy subscriptions?
You will not be able to add legacy subscriptions from 10th March 2022. From this date onwards they will need to be managed with the New Commerce Experience. Please contact us if you need any help managing your legacy subscriptions.
Have a question?
If you’d like more information on the New Commerce Experience, or how you can grow your business through Microsoft CSP, please contact our Microsoft Business Development Manager, James Bayliss.
Email: jamesb@climbcs.co.uk
Tel: +44 (0) 1364 655 207
