Microsoft is introducing a new commerce experience (NCE) and generally releasing January 10th, 2022
The new experience is designed to provide a standardization of offers and terms, giving you greater choice and flexibility when it comes to your Microsoft licensing. The purchasing motion will have a consistent and standardized set of policies, agreements, and procedures across purchase motions.
Why the change and what are the benefits?
The current change is aligning with others in the marketplace and will simplify the way small and large businesses acquire licenses, and the agreement associated. Microsoft is planning on making it easier for trying new products via trials and addons; Telco offers will be available to have billed in arrears;
What is changing and why?
- Price Increase: Effective July 1st there will be a price increase to many Microsoft 365, Office 365, Dynamics 365, Power Platform, and Windows 365 the monthly price will be increasing.
- Adding Annual and Tri-Annual Terms: Microsoft will be offering annual and tri-annual (3 Year) terms for select licenses: Moving forward you will be able to purchase licenses and lock in price protection, leverage promotions (if available) at a discount compared to month to month.
- License Change/Cancellation Window of 72 hours: When purchasing an annual or tri-annual term, a prorated change in license quantity or cancellation will only be allowed in the first 72 hours.
- There are changes in free trials that are expected; Trials will be 25 licenses, will be 30 days with the ability to convert to paid early; Auto-renew will default to On;
If you are facing uncertainty and are not comfortable with a long-term commitment, the Monthly subscription with prorated additions/cancellations is still available and is recommended. There will be a price premium but provides flexibility.
Trials must be carefully managed due to the new changes including Auto-Renew, inability to cancel prior and must do so in the 72-hour cancellation period of which changes/cancellations are allowed. Note: paid subscription starts on the next day with a default term of 1 year. https://docs.microsoft.com/en-us/microsoft-365/commerce/subscriptions/cancel-your-subscription?view=o365-worldwide
Q & A:
- Why is the cancellation window only 72 hours?!
- The intention, like other cloud subscriptions, is that an annual agreement provides a discount for extended commitment. If you need this flexibility then a monthly subscription is advised. Note, this only applies to Annual/Tri-Annual subscriptions
- Our company has seasonal users. Can I mix terms? For example, I have 5 full-time and typically have 5 summer students. Can I purchase an annual term and a monthly term?
- Yes, you can purchase an annual term for a quantity of 5 and add a second subscription monthly and scale up/down or cancel all with proration as you do today.
- I have multiple partners. Will I be able to continue the relationships I have today?
- Yes! Product licenses can be purchased with any combination of partners. ODT expects that we are the partner for your related products we support, for example, Business Central. We have annual support agreements that allow us access to priority support. If we are working with your partner and providing our Rentals application, for example, these licenses are managed with your partner.
- I have a product license with another partner and wish to add an addon via ODT. Can we do this?
- Yes, you can add products that depend on another product that may be held with another partner.
- If I purchase an annual subscription, do I need to do so on a Credit Card?
- No. We are excited to offer prepaid annual software subscriptions via EFT, Cheque, or Credit Card. ODT will require payment prior to placing the order with Microsoft. Note, this only applies to Annual/Tri-Annual subscriptions. Our policy for monthly subscriptions requires a credit card.
- It is not feasible for our organization to purchase an annual subscription upfront and wish to pay monthly. What are my options?
- Please contact us and we can approach a financing partner together.