Microsoft NCE subscriptions

Discover everything you need to know about Microsoft’s New Commerce Experience (NCE) licensing subscriptions and the benefits of migrating your Cloud Solution Provider (CSP) licences to NCE.

Microsoft NCE enables your organisation to gain greater control over licensing costs and reduce the complexity of licensing, resulting in more productive and cost-effective licence management.

What is Microsoft NCE?

Microsoft has introduced NCE to simplify licence management, reduce costs, and provide more flexibility around your licensing options. NCE allows you to choose a licensing term that works for your organisation with monthly, 12-month, and 36-month subscriptions and will replace how you purchase your Microsoft licences through CSP.

Microsoft NCE changes

Once you switch to NCE, you will be able to choose between a monthly subscription or a longer-term commitment. Similar to before, Microsoft subscriptions will still have the option of an annual commitment, but you won’t be able to decrease the number of licences you pay for during your chosen term. However, you will be able to upgrade many of the offerings mid-term to add more licences.

The new licensing gives you more control to choose the option that’s right for your organisation. If you need more flexibility, the new monthly subscription term is the best option. But, if you need more commitment, the 12 and 36-month options – or a mixture of some monthly and some longer-term – will give you that.

Key changes:

  • Annual subscriptions are for a full 12-month term from the purchase date
  • The number of licences can be increased at any time during the term of your subscription, and billing for this is pro-rated to the subscription renewal date
  • The number of licences can only be decreased at the end of a subscription term or preloaded into the system to automatically take affect at the end of the term
  • You can upgrade to a higher level of licence at any time during the term, and billing for this is pro-rated to the subscription renewal date
  • You can now turn off auto-renew on any NCE purchases, ensuring your licence and billing stops at the end of the term
  • Monthly subscriptions allow full modification and cancellation of licensing on a monthly basis, providing greater flexibility for fluctuations throughout the year
  • Licences can be mixed between annual and monthly subscriptions for the same product
  • When you have made an NCE purchase, there’s a 24-hour window to cancel if required in PSP

Get your quick guide to Microsoft NCE for a free cheat sheet on understanding the changes and how they impact your organisation.

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Microsoft NCE subscription options

Monthly subscription

Provides the flexibility of monthly licences without the annual commitment, allowing you to decrease your licence seats more regularly.

You can upgrade and increase the number of licences on this subscription at any time, but you can only decrease or cancel once a month during your 24-hour subscription renewal window.

12-month subscription

Provides longer-term commitment with the option of monthly or annual billing. With this subscription you will pay a set price for the duration of your term, protecting you from price increases.

You can upgrade and increase the number of licences on this subscription at any time during your term, but cannot decrease or cancel until your term ends.

36-month subscription

Allows you to secure licensing costs for three-years with monthly, annual, and upfront billing options.

Similar to the 12-month subscription, you can upgrade and increase the number of licences on this subscription at any time during your term, but cannot decrease or cancel until your term ends.

How does Microsoft NCE impact my organisation?

If you’re still on a Microsoft CSP legacy subscription, you need to switch to a Microsoft NCE subscription by 31st December 2023 to ensure that your organisation remains licenced correctly based on your bespoke requirements.

What if I don’t migrate to NCE by the end of December 2023?

On the date your legacy subscription auto-renewal falls in 2024 Microsoft will automatically migrate your licences to a 1-year term subscription.

Are all sectors affected by the Legacy end date?

Yes, corporate, public sector, education and not-for-profit will be automatically migrated to NCE during 2024 if you have not already done so.

Corporate and public sector can migrate to NCE today however education and not- for-profit can migrate from November 2023.

For guidance and support choosing the best NCE subscription for your organisation, speak to our Microsoft licensing specialists for free.

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Kirsty Rhodes
Kirsty Rhodes

Kirsty Rhodes is a specialist in helping universities, colleges, and MATs with their Microsoft technology strategies, and effectively licensing customers estates to meet their technology roadmaps and budget requirements. She has been with Phoenix for several years, across a multitude of roles, helping hundreds of education organisations successfully move to the cloud licensing model, while ensuring optimum return on investment.

See all posts by Kirsty Rhodes