New Commerce Experience (NCE).

The New Commerce Experience (NCE) is a transformative initiative launched by Microsoft to enhance the way businesses purchase and manage cloud services. Introduced in January 2022, NCE aims to simplify the procurement process for Microsoft’s cloud offerings, including Microsoft 365, Azure, Dynamics 365, and more. This program shifts the traditional licensing model to provide greater flexibility and transparency in subscription management.

Key objectives of NCE include:

• Streamlined Purchasing: NCE consolidates various purchasing options into a unified model, making it easier for customers to choose the right plan.
• Flexible Subscription Models: Businesses can now select between monthly or annual subscriptions, allowing them to adapt their usage based on changing needs.
• Cost Predictability: By offering committed pricing options, NCE helps organizations manage their budgets more effectively while benefiting from lower rates for long-term commitments.

The introduction of NCE marks a significant evolution from the previous Cloud Solution Provider (CSP) program, focusing on reducing complexity and enhancing customer experiences. As part of this shift, Microsoft also emphasizes partner relationships, encouraging collaboration to maximize value for customers.

Under the New Commerce Experience, Microsoft has introduced several subscription models designed to accommodate diverse customer needs. These include:

• Monthly Subscriptions: Customers can purchase licenses on a month-to-month basis without any long-term commitment. This option provides flexibility for businesses that require agility in scaling their services but comes at a higher price point compared to annual commitments.
• Annual Subscriptions: These subscriptions offer lower rates in exchange for a one-year commitment. This model is ideal for organizations that can predict their usage over a longer term and prefer stable pricing.
• Multi-Year Pricing: For those looking to secure services over an extended period, NCE offers a three-year pricing option. This allows businesses to lock in prices while ensuring they have the necessary resources available.

The flexibility in subscription options not only helps organizations tailor their cloud services according to current demands but also facilitates easier adjustments as business needs evolve.

The New Commerce Experience provides several advantages that enhance the overall customer experience with Microsoft cloud services:

• Improved Cost Management: The introduction of predictable pricing models allows businesses to better forecast expenses associated with their cloud usage. This predictability is crucial for budgeting and financial planning.
• Enhanced Transparency: NCE aims to clarify pricing structures and billing processes, reducing confusion around costs. Customers receive intuitive invoices that clearly outline charges, making it easier to understand what they are paying for.
• Simplified License Management: With NCE, managing licenses becomes more straightforward. Organizations can easily audit their current licenses and make informed decisions about which subscriptions best meet their needs.
• Greater Control Over Cloud Investments: Customers have more autonomy in choosing how they purchase and manage their licenses, allowing them to align their cloud strategies with business objectives more effectively.

These benefits collectively contribute to a more streamlined and user-friendly experience when interacting with Microsoft’s cloud offerings.

Transitioning from legacy systems to the New Commerce Experience requires careful planning and consideration. Microsoft has outlined several steps for customers and partners to ensure a smooth migration:

• Evaluate Current Licenses: Organizations should conduct an audit of existing licenses to determine which ones are essential and which can be adjusted or eliminated under NCE.
• Choose Appropriate Subscription Models: Depending on usage patterns and business needs, customers must decide between monthly or annual commitments. Consulting with partners can provide valuable insights into making these choices.
• Prepare for Auto-Migration: Microsoft will begin auto-migrating existing subscriptions starting July 2024. Customers should proactively engage with partners to discuss migration timelines and strategies.
• Utilize Available Resources: Microsoft offers various tools and resources designed to assist customers during the transition. Engaging with knowledgeable partners can help navigate these changes effectively.

By taking these steps, businesses can minimize disruptions during the transition while maximizing the benefits offered by the New Commerce Experience.

The New Commerce Experience represents a significant shift in how businesses engage with Microsoft’s cloud services. By simplifying purchasing processes and introducing flexible subscription models, NCE empowers organizations to manage their cloud investments more effectively. The emphasis on transparency and predictability enhances customer confidence in budgeting and planning for future needs. As companies prepare for this transition, leveraging partner expertise will be crucial in navigating the complexities of licensing changes. Ultimately, NCE aligns with modern consumption models, ensuring that customers have the tools they need to thrive in an increasingly digital landscape.