New Commerce Experience (NCE) is the latest Microsoft release which is an evolution of its commerce platform. While this is a large change coming from Microsoft, this new system is far from the most exciting release, as no new features are on offer for the end consumer, however, it will impact billing, which suddenly makes NCE an important update to understand.

NCE will now offer these term options:

• Monthly: This option allows customers the flexibility to purchase and cancel licenses without committing to an extended duration license with an increased cost of 20%
• 12 Months: This will be the default go-to method going forward with the option to be billed annually or continue to be billed monthly
• 36 Months: A long-term contract for those that are truly committed to using Office

What this change means for you

Microsoft is looking to enforce a 12-month commitment to the services they provide, or a 20% increase if you choose to go with the flexible option. NCE has removed the ability for Cloud Solution Providers (CSP) to break this 12-month commitment without charges. Previously an Office license could be purchased, used for 3 months, and then canceled – without additional cost, which results in you only being charged for 3 months of use.

Now for the benefits of NCE. Billing has been moved to the current month whereas previously you were having to pre-pay one month in advance. This will mean that when your licenses finish their current cycle and are renewed under NCE, you may notice a month with less cost coming your way. While this may seem like an awkward change overall, Microsoft is doing this to simplify billing and is pushing for a much simpler model going forward.

Source: Microsoft