What is the Microsoft CSP New Commerce Experience?
Guides|by James Roberts|10 January 2022
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 help you understand the principles of the changes and what they mean in practical terms for your business we've covered both Direct and Indirect CSP models. We've included videos and a number of FAQs but 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.
Direct CSP New Commerce Experience
Watch our Microsoft Alliance Manager, Chris Chandler, and Microsoft Business Development Manager, Leanne Giffard, as they outline the main changes and their impact on your business.
If you have a question check out the FAQs below or contact us.
Direct 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 I commit to annual terms and still pay monthly?
- Can I increase or decrease my seat count mid-term?
- Can I upgrade or downgrade a subscription mid-term?
- Are subscription seat adds pro-rated when adding mid-term?
- When will I have to transition to the Microsoft CSP New Commerce Experience model by?
Q1: Which seat-based subscriptions does NCE impact?
Microsoft 365, Dynamics 365, Power Platform, and Windows 365 offers, plus associated add-ons.
Q2: Will there be any changes to the billing cycle?
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 I commit to annual terms and still pay monthly?
Yes, you can choose to commit to a 1-year or 3-year term and pay for subscriptions monthly. However, you will be unable to decrease seat count or subscription type each month during the commitment period. You can only do this at renewal.
Q5: Can I increase or decrease my seat count mid-term?
You CAN INCREASE your subscription(s) seat count mid-term with immediate effect and the additional seats will be pro-rated to the original commit term end date.
You CANNOT DECREASE your subscription(s) seat count mid-term. You will need to wait until subscription commit term renewal to reduce the seat count.
Q6: Can I upgrade or downgrade a subscription mid-term?
You CAN UPGRADE your subscription(s) mid-term (partial/all) with immediate effect and the upgraded subscription will be pro-rated to the original commit term end date.
You CANNOT DOWNGRADE your subscription(s) mid-term. You 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, you can increase your subscription(s) seat count mid-term and the additional seats will be pro-rated to the original commit term end date.
Q8: When will I have to transition to 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.
Indirect CSP New Commerce Experience
In this recording from a recent webinar, Leanne Giffard, Microsoft Business Development Manager, and Chris Chandler, Microsoft Alliance Manager, take our indirect customers through the New Commerce Experience changes.
If you have a question check out the FAQs below or contact us.
Indirect 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?
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.
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