Does your business currently utilize Microsoft licenses through the Cloud Solution Provider or CSP program? Microsoft has announced a new program that will sunset the CSP and move clients to a new New Commerce Experience (NCE) program. In this article, we’ll explore all the pros and cons of the Microsoft CSP to NCE this change and what you need to know to ensure to minimize the impact of these changes and price increases.
The new Microsoft NCE program was designed to reduce the complexity of licensing costs, and at the same time, provide more options to businesses who utilize services such as Microsoft 365, Windows 365, Dynamics 365 and Power Platform. The new subscription options went into effect on March 1, 2022 and subscriptions are offered in 3 terms:
- 20% Increase over Legacy
- No price protection
- No decreases or downgrades during term
- Annual or Tri-Annual
- More stability for the term
- Can be paid monthly or upfront
- Upgrades & Quantities of licenses are available, but no downgrades in either, during term
Monthly programs will be roughly 20% more than the annual subscription price. Upgrades are permitted, but downgrades are not.
The Microsoft NCE monthly program offers a high amount of flexibility and is especially desirable for businesses who have regular turnover. This plan allows you to evaluate your services monthly and potentially decrease your licenses each month. However, most businesses do not actually review their costs, needs, and requirements monthly so you may overpay for services you are no longer using. This is where a technology partner can be a big help! Software licensing can be complex to maintain and potentially a big area for cost-control. Conscious Networks can help you manage all your software licensing and provide the biggest opportunity for savings.
The biggest downside is obviously the substantial price increase. This can be a big nut to cover for a small business and an unforeseen increase in the annual budget expenditures for larger businesses. It also means that your team need to really evaluate your usage requirements to ensure you’re not paying for licenses and programs you don’t need.
- Average Total Price Increase of 30% – For most businesses, there is going to be an increase in multiple aspects of their programs and MS Applications bundles. These increases vary across platforms, bundles, and options.
- While upgrading is always an option, you cannot downgrade your subscription(s) mid-term. You will have to wait until the end of the original subscription term to make those changes. Legacy CSP subscriptions will continue to the end of the current subscription term.
If you are on a legacy CSP platform, you can potentially renew most of these bundles up to June 30, 2022. This proactive step could save you a lot of money before the NCE takes full effect. The importance of evaluating your current situation and requirements is paramount. The transition from CSP to NCE can be streamlined with a free analysis of your current plans and options. Conscious Networks helps you find the most cost-efficient strategies for your business. Our analysis includes:
- Review current licenses and applications to optimize your licensing
- Review administrative roles & security settings
- Provide suggestions for your Microsoft CSP to NCE transition strategy
To schedule a review of current software licenses and requirements and potential options, call or click to get started.
For additional information, visit Microsoft’s announcement.