Microsoft 365 Subscription Changes
What They Mean for You
Microsoft New Commerce Experience (NCE) subscription changes
Microsoft is implementing a new set of standardized policies, subscription terms, and procedures common across all Microsoft Cloud Solution providers called the New Commerce Experience (NCE). These subscription changes are in effect for new subscriptions but do not affect existing legacy subscriptions until they renew after July 10, 2022.
Under the NCE model, subscriptions will be either on an annual term, paid monthly, or on a monthly term as outlined below. Prior to NCE (legacy model), all subscriptions have been annual term subscriptions, billable monthly and Intermedia waived cancellation fees in the absence of Microsoft cancellation fees. Going forward, cancellation policies will be enforced under NCE.
Overview Technology Solutions Inc. is completing its conversion to the NCE Model on June 30th 2022. If an organization does not elect an “NCE Type”, then they will be elected as “Type III” which is a Month-to-Month commitment with a 20% increase in pricing.
To Elect an “NCE Type”, please take the survey here: https://forms.office.com/r/8UxH1pfGHd
NCE Annual and Monthly subscriptions
Annual subscriptions:
- pricing is locked for the term of the subscription, protecting you from potential future Microsoft price increases
- cancellable within 7 calendar days from when the subscription was created, but not after that
- can be upgraded with additional seats
- are billed monthly
Monthly subscriptions:
- have a premium price of 20% over annual plans
- can increase or decrease the number of seats each month
- are cancellable within 7 calendar days
Are You Affected By This Change?
Nearly every organization with Microsoft Office 365 or Microsoft 365 Licensing is affected by this change if they are privately owned and operated.
The following Microsoft Clouds in the United States are affected by this change:
Commercial Cloud (Global) – Price Increases will occur as detailed in the “Key NCE Dates” section below, in addition to the 20% price increase for month-to-month subscriptions. Most private organizations in the United States use Microsoft’s Commercial Cloud.
Microsoft GCC – Price Increases for G1, G3, G5 will occur, however, there is no 20% increase by staying at for month-to-month at this time.
Microsoft GCC High (DoD Clone) – No Notable Changes
Microsoft DoD – No Notable Changes
NCE Types
"Choose Your Own Adventure"
Overview Technology Solutions has developed a proprietary categorization system where our Client Partners can benefit from “choosing their own adventure”, and still have consistency in experience, even if what they are asking for would be considered “custom” by other solution providers.
We achieve this by mixing in commitment terms for new licensing that cater to those who have inconsistent staffing or rapidly changing needs. This allows for decisions to be made quickly during your onboarding processes for new employees.
When working with Overview, you are asked to choose one of these five Invoicing and Commitment Types:
Type I – Annual Commit with Annual Invoicing
Invoice will be due within 30 days of receipt, additional users are prorated for the year. You cannot decrease user count.
Type II – Annual Commit with Monthly Invoicing
Same as Type I, however, This is subject to approval by our Finance Team.
Type III – Keep Monthly Commitment with Monthly Invoicing
NOTE per-license cost increases 20% — If applicable to your organization — some organizations have annual commitments currently
Type IV – Annual Commit with Monthly Invoicing for Base, All New Additions are Month to Month
This is subject to approval by our Finance Team, ONLY Month to Month additions have the 20% increase, Option to convert licenses to Annual on a Quarterly basis
Type V – Annual Commit with Annual Invoicing, All New Additions are Month to Month
Invoice will be due within 30 days of receipt, additional users are prorated for the year. You cannot decrease user count except on Month to Month additions. ONLY Month to Month additions have the 20% increase, Option to convert licenses to Annual on a Quarterly basis.
Key NCE Dates
JULY 1, 2022: Subscription renewals only available under NCE starting this date in Overview’s Portals
- All Microsoft 365 subscription renewals (including Microsoft 365 Apps (“Office Apps”) will need need to be provisioned as NCE Annual or NCE Monthly subscriptions after this date. (No action required until renewal.)
- Legacy subscriptions renewals will no longer be available through the CSP legacy system after this date.
- Standard NCE Monthly pricing in effect (Annual pricing +20% premium in effect).
MARCH 1, 2022: New subscriptions only available under NCE starting this date
- No action is required for existing legacy subscriptions, including Microsoft 365 Apps (“Office Apps”) until June 30, 2022.
- All NEW subscriptions will need to be enabled under NCE Annual or Monthly. New Legacy subscriptions will not be available (Legacy renewals are still available until July 10, 2022).
- Price increase goes into effect for 6 Microsoft 365 products for new subscriptions, existing month-to-month commitments, or when renewed after March 1, 2022.
- NCE Monthly subscriptions will be discounted (available at annual pricing versus +20% premium) through June 2022.
NCE FAQ's
What happens to my subscription if I don’t renew it as monthly or annual under NCE?
Starting on July 1, 2022, all Microsoft 365 subscription renewals must be on the NCE platform according to Overview’s implementation timeline. Therefore, we will automatically renew subscriptions starting on that date, on the NCE platform, as monthly subscriptions, at the monthly pricing in effect at that time. Monthly subscriptions can be converted at any time to annual subscriptions.
If subscriptions switch from Legacy to NCE Annual or Monthly, do users/seat licenses need to be reassigned?
You do not have to reassign licenses when switching different subscription types, i.e., Legacy, NCE Annual, or NCE Monthly of the same product.
What is the cancellation policy for subscriptions on New Commerce Experience?
Under NCE, annual subscription plans cannot be canceled after 7 calendar days from purchasing or renewing a subscription.
Can I switch between annual and monthly terms?
Monthly subscriptions can be switched to annual at any time, but annual terms cannot be switched to monthly.
Can I switch/upgrade between any Microsoft 365 subscriptions?
Microsoft NCE supports the ability to upgrade a subscription at any time to a different subscription that is considered an upgrade under NCE. Upgrades are only available for paid subscriptions. For example, you can upgrade from Microsoft 365 E3 to E5, however, you cannot downgrade from Microsoft 365 E5 to E3. Call us at 888-466-0665 or email us at: [email protected]
Is there a discount on the annual plan?
Annual plans are less expensive than monthly plans. Monthly plans have a premium of 20% over annual plans.
Are there multi-year subscriptions?
Not currently for Microsoft 365 products.
Are there any differences between how Overview is applying NCE policies and other providers?
Microsoft is implementing New Commerce Experience (NCE) policies, subscription terms, and procedures across all Microsoft Cloud Solution Providers. Overview is applying these new NCE policies as transparently as possible.
Isn’t my current Microsoft 365 subscription through Overview monthly?
Prior to NCE (the legacy CSP model), all Microsoft 365 product subscriptions have been annual term subscriptions, billable monthly, and Overview waived cancellation fees in the absence of Microsoft cancellation fees. Going forward, early cancellation fees will be enforced under NCE.
Do different product subscriptions for my account have different renewal dates under NCE?
Each annual product subscription has its own renewal date. Additional seats added to a subscription are coterminous (all seats on a subscription have the same renewal date). We recommend moving your subscriptions to NCE on the same date, so subscription renewal dates align.
Can I pay monthly for an annual subscription?
Yes, annual subscriptions are paid monthly under NCE Type .
What is the renewal date for newly added seats to a subscription on New Commerce Experience?
Additional seats added to a subscription are coterminous (all seats have the same anniversary date).
Can I have both an annual and a monthly subscription for the same product?
Yes. Customers may want to mix and match annual subscriptions for some users and monthly subscriptions for other users based on their business requirements. This is addressed above in the “NCE Types” Section in a process that is unique to Overview and is designed to make the decision making process more streamlined and consistent.
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