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What is Happening?

On March 1st, 2022, Microsoft is changing their subscription offerings, term offerings and pricing. All new cloud subscription purchases for Microsoft 365, Dynamics 365, Power Platform, and Windows 365 are moving to what Microsoft calls the “New Commerce Experience or NCE”.

It really all started in 2019.

Azure related products and Microsoft continues to invest in consolidating their products under this platform to provide customers with more benefits and features

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Microsoft Cloud Subscriptions

March, 2022 Changes

  1. Ability to schedule changes at subscription renewal.
  2. Autorenewal toggle option.
  3. More simplified billing and renewal dates.
  4. Increased accounting efficiency with annual and multi-year subscriptions with option to pay annually.
  5. Monthly subscriptions without annual commitment pricing will be 20% higher than the annual subscriptions paid monthly or annually. This type of subscription will allow companies flexibility to change licenses monthly.
  1. Pricing increases are scheduled for March 1, 2022.
  2. Annual subscriptions paid monthly or annually have an annual commitment. All annual subscriptions paid monthly or annually cannot be cancelled until the renewal period.
  3. Annual subscriptions will not be able to decrease license counts based on your fluctuation in staff. You can increase licenses at any time. You will only be able to decrease license counts during the renewal period.
Microsoft Cloud Subscriptions New Commerce Experience (NCE)

Subscription terms in the NCE

One Month Subsciption

The new commerce experience for Microsoft 365 now offers a 1-month subscription to prospective users.

Changes | Benefits

Enables a customer to change the licenses month to month. But the subsciptions are 20% more expensive that an annual subscription.
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Twelve (12) Subscriptions

The new commerce experience for Microsoft 365 now offers a Twelve(12) -month subscription to prospective users.

Changes | Benefits

This is a regular commitment with the billing options are monthly, upfront.
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Thirty Six (36) Month Subscriptions

The new commerce experience for Microsoft 365 now offers a Thirty Six (36) -month subscription to prospective users.

Changes | Benefits

This option enables a customer to lock in pricing for a full 36 months. The billing options are monthly, annual and upfront.
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