New Commerce Experience from Microsoft
In addition to discontinuing the Open License Program which we discussed in our previous article, Microsoft is going to begin charging more for month-to-month contracts, so organizations need to sign up for annual deals to keep their pricing in line with current pricing. Microsoft is calling it the “New Commerce Experience” (NCE), but the bottom line is that licenses purchased through CSP programs will be more expensive if you are unaware of the steps you need to take.
Microsoft 365 Subscriptions with New Commerce Experience
Microsoft’s NCE program will affect Microsoft 365 subscriptions in three areas:
- Base subscription prices go up March 1, 2022 by 15% for most Microsoft 365 products.
- Month-to-month flexibility is going to cost you about 20% more compared with a one-year contract.
- With longer time commitment, the NCE will lock you into a specified number of licenses, allowing you to increase licenses, but not reduce them until renewal time.
Take These Steps
Here are some steps you can take to offset Microsoft’s price increases that will be taking place in a couple of weeks.
- Renew before March to lock in your current pricing for 1-3 years. We can help you make the transition from your current license program to Microsoft New Commerce Experience.
- Analyze your Microsoft technology usage, decide on the bundles you need and stop paying for Microsoft apps you don’t need. It may turn out that you can make do with a less fully featured bundle.
- Eliminate apps from third-party vendors that Microsoft has already included in its portfolio, such as Microsoft Power BI. This will streamline your operations, reduce your overall spend, and optimize your Microsoft license utilization.
Guidance Throughout the Transition
We know that the program changes Microsoft is introducing are complex and may appear daunting at first glance. But understanding NCE and ensuring your IT budget stays on track doesn’t have to be take its toll on your IT team. That’s where iShift can help. As your co-innovation partner for Cloud and a Microsoft CSP partner, we can really help you figure out the best and most flexible options under the new licensing model. We’ll guide you through every step as you make the transition to Microsoft’s New Commerce Experience.
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iShift is a multi-cloud technology solutions company that provides cloud engineering, cloud migration, cloud management and specialized IT staffing services. Our mission is to help businesses to simplify and accelerate growth while enabling digital transformation and IT modernization. No matter where organizations are in their cloud journey, iShift can design, build, optimize and manage a future-ready multi-cloud environment, resulting in significant cost savings, increased workforce productivity, operational resilience, continuity of services, and business agility. For more information on how our offerings empower businesses through their adoption of cloud and modern technology, visit www.ishift.net.
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