Microsoft NCE and Pricing Updates

Understand the changes and how they will affect you.

Microsoft announced new global price increases set to go into effect March 1, 2022.  In addition to the 365 price increases, there are other important changes coming to Cloud Solution Provider (CSP) that will impact your CSP agreement at your anniversary renewal.

Effective March 2022, pricing will be increasing on the 365 products.

Examples of price increase based on list price:

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

Meet NCE

The New Commerce Experience

Microsoft’s new way to purchase the 365 User Licenses is called the “New Commerce Experience” (NCE). This will be available as of October 14, 2021. The main change will be how often licenses may be reduced. Details that have been released are below; there are more to be announced in early October.

Microsoft NCE

 MonthlyAnnuallyMulti-Year
Term1 Month12 Monthsup to 36 months
Payment OptionMonthlyMonthly
Annually
Monthly
Annually
Upfront
Price Lock1 Month12 Months36 Months
FlexibilityDecrease qty monthly.
Increase qty daily.
Decrease qty annually.
Increase qty daily.
No option to decrease qty during term.
Increase qty daily.
Cancellation PolicyBefore 72 hours of term - Prorated Billing/Refund.

After 72 hours, customer willl be invoiced for the full 1 month.
Before 72 hours of term - Prorated Billing/Refund.

After 72 hours, customer willl be invoiced for the full 12 months.
Before 72 hours of term - Prorated Billing/Refund.

After 72 hours, customer willl be invoiced for the full 36 months.
The New Commerce Experience
Microsoft’s new way to purchase the Microsoft 365 User Licenses is called the “New Commerce Experience” (NCE). This will be available as of 1 March 2022. The main change will be how often licenses may be reduced and the cancellation policy.

Microsoft 365 Price Changes

In addition to launching the New Commerce Experience for CSP’s, Microsoft also announced pricing changes for some key SKU’s Microsoft 365. This pricing increase reflects the value of the solutions and the added areas of innovation around communication and collaboration, security and automation.

The pricing changes will go into effect on March 1, 2022 and will impact the following products:

 

Microsoft Subscription Price Changes