As managed service providers (MSPs) navigate Microsoft’s New Commerce Experience (NCE), we want to continue helping ease some of the anxiety around the transition. Here we answer the most popular questions surrounding New Commerce Experience to clarify changes and simplify the shift for Microsoft resellers.
General MSP NCE questions
Can we transition an existing client subscription to NCE sooner than November?
Yes, you will be able to transfer current subscriptions from legacy to NCE anytime between March 1, 2022 and November 30, 2022.
When do NCE price increases come into play?
The NCE premium on monthly commitment SKUs comes into play once you move your subscriptions from legacy to NCE. If you decide to move to NCE on a yearly or 3-year commitment term, you will not be affected by the 20% premium.
Which SKUs are affected by the NCE monthly premium?
All Microsoft products are moving to NCE. If you choose a monthly term commitment, you will be affected by the 20% premium. You will also have the option to choose an annual or 3-year term which are not subject to the 20% monthly premium.
Is it mandatory to migrate to NCE?
Yes, a migration to NCE is inevitable. The timeline, however, may differ on a case-by-case basis.
Which SKUs are affected when moving to NCE?
By the end of November 2022, all products must be moved to NCE. The only segments that are not included yet are nonprofit, education, and government.
Is a direct purchase from Microsoft considered to be a CSP purchase or not? Am I bound by the transfer rules if I want to take over a client’s direct Microsoft licenses?
If the client is on NCE licenses directly with Microsoft, it will very likely have the same restrictions regarding “CSP transfer” as between CSPs.
Do all seats have to be the same term? Can they have annual seats and month-to-month seats?
No, they do not have to all be on the same term. Any product, whether a plan or an add-on, comes with two subscription options: monthly or annual (and soon, 3-year). You can mix and match all types.
Can a current subscription be transferred direct to Microsoft?
If your subscription is on legacy, you may cancel and repurchase on the Microsoft direct side. If you’re on NCE, you’ll have to wait until the end of the term and then purchase on the Microsoft side.
Can a client who bought licenses directly from Microsoft then transfer to a CSP any time or are they bound in the same way as a CSP-to-CSP transfer?
When NCE is live for Microsoft Web Direct in March, the same billing model will apply to direct. This means CSP transfers from Microsoft direct will no longer happen—you’ll have to wait until the end of their term and repurchase on the CSP side.
Billing MSP NCE questions
For annual and 3-year terms, how will license additions be invoiced?
These seat additions will follow your billing cycle. If your subscription is annual, paid monthly, the prorated amount will be on your next monthly bill. If your subscription is annual, paid annually, it will be on your next annual bill.
Annual billing is set on day 1 of the subscription purchase so if you purchase on March 3, you will be billed on March 3 annually for NCE and your Sherweb invoice will reflect this. Does this mean every time a client adds a seat, they will get a new additional bill date? No more consolidated billing?
Additional seats of an existing subscription will follow the term of the original subscription and be prorated on the following invoice. So, if you have annual billing and you add a seat 6 months in, your next yearly invoice will show a half charge prorated for the year that just passed and regular charges for your upcoming bill.
For an existing client on a yearly agreement (starting March 1 with 20 licenses), if you add 5 licenses on June 1, will those licenses renew on March 1 or June 1?
They will all renew on March 1 of the next year.
Can seats be upgraded within the term?
Yes, any product that has an upgrade equivalent will have an option to upgrade. The subscription term will remain the same (no double billing).
When will new Dynamics 365 pricing become available?
Dynamics 365 SKUs will not have a price increase applied to them so they stay the same price as on legacy unless you are on a NCE monthly term which will have the 20% premium applied to it.
Sherweb’s partner portal
When will the partner portal be updated and available?
NCE offers and the new partner portal features are available to everyone as of March 7, 2022.
Will there be capabilities available in the partner portal that allow us to manage various expiration dates? For instance, is there the ability to get a 60-day notification before licenses on a yearly term expire?
Yes, there will be additional and new capabilities available in our partner portal to manage NCE subscriptions and their different renewal dates.
Do all our organizations have to move to NCE at the same time?
No, you can choose your own time to move your organizations to NCE until November 30, 2022. Legacy and NCE can coexist in your organization.
Will there be any downtime for clients when switching to NCE?
There will be no downtime. It’s simply a billing switch.
Will there be additional subscription and billing analytics available in the partner portal?
Yes, every time you buy an NCE SKU this will create a new subscription entry under the “Subscription” tab. Each subscription will display the term, billing cycle (when needed), renewal date and upcoming cancellation status. You will also be able to manage seat quantities.
We realize there is a lot of information to take in regarding how NCE affects MSPs and the overall migration. We want to ensure the conversion to NCE is as seamless and pain free as possible. Not a Sherweb partner yet? Set your managed services and Microsoft 365 offering up for success by joining our exclusive partner program. For more information sign up today!
