Major Microsoft CSP changes for license-based products
Microsoft introduced its New Commerce Experience (NCE) first back in 2019 when the Azure legacy subscriptions were moved to a new Azure Plan. In the fall of 2021, Microsoft will extend its NCE by adding the seat-based cloud offers of Microsoft 365, Dynamics 365, Power Platform, and Windows 365 to it:
The addition of Microsoft 365, Dynamics 365, Power Platform, and Windows 365 offers in CSP to the new commerce experience is another major milestone in our new commerce journey. Microsoft is investing in product innovations, better tooling, and access to new business opportunities that enable partners to grow their CSP revenue and provide more options to customers. - August 2021 announcements
Why is Microsoft doing this?
NCE focuses on streamlining and improving the end-customers experience of buying, managing, and using Microsoft services (especially for SMBs). It won’t affect how clients interact with the offerings but the way they are billed for them.
The upcoming changes will provide Microsoft partners with new tools to manage license-based subscriptions: e.g. such that will reduce the management cost and licensing complexity. Also under the new commerce experience, partners will be able to forecast their revenue more accurately.
On the other hand, customers will be awarded discounts and multiple new term options.
What should be expected?
- • Price reduction on annual or multi-year agreements
• New cancellation policy
• New refund terms
• Exclusive offers for Microsoft 365 and Dynamics 365
• Prices premiums for short-term subscriptions to meet fluctuating requirements
• New monthly and annually commitments, and three-year commitments terms
• And much more.
All new product features come with a significant change to the CSP incentive program. In October, Microsoft will launch incentives for the CPS NCE for direct bill partners, indirect providers, and indirect resellers. Any Microsoft partner that fails to make the transition to the new experience may lose its incentives on transacting the legacy offerings.
When would customers transition from legacy to NCE?
The seamless transition to the new experience will happen once your customer’s subscription is up for renewal. The new commitment terms will be configured then as well (annual or three-year commitments or the new monthly licensing option).
What would it mean for your business set-up?
Supporting the new commerce experience will no doubt require some changes in the way your cloud marketplace supports and executes Microsoft transactions (due to the new cancellation, new purchasing frequencies, etc.).
We, at AppXite, are aware of the implication such changes can have for any Microsoft CSP business. And especially because the NCE affects some of the top CSP sellers.
We are dedicated to offering our partners a seamless transition from legacy offerings to the new commerce experience for Microsoft 365, Dynamics 365, Power Platform, and Windows 365. And we are working hard towards ensuring this.
Be the first to sell the new Windows 365 Cloud PC offerings from your Cloud Marketplace!#Windows365 was made available to businesses of all sizes on Aug. 2. Less than 24h after the release, AppXite Platform users can buy, sell and provision more than 30 different offers. pic.twitter.com/QJvla3aGqf— AppXite (@AppXite) August 4, 2021
What's the first to come?
Make sure you don't miss the discounts and promotions Microsoft is launching with the new experience. Contact your account managers in AppXite for exclusive offers.