Discover the latest developments to the Microsoft Cloud Solution Provider (CSP) program and how they’re reshaping the digital transformation landscape for Managed Service Providers (MSPs).
The Microsoft CSP program is evolving to provide unique service offerings tailored to MSPs. This ongoing journey ensures partners can continue their digital transformation for customers, regardless of their purchasing preferences for Microsoft products and solutions.
Understanding Microsoft New Commerce Experience (NCE)
Launched in 2020, NCE for the Microsoft CSP program builds upon the core principles that established CSP as the go-to platform for partners offering value-added cloud solutions. Initially applicable to seat-based offers in Microsoft’s modern work and business applications, NCE is now being extended to encompass Microsoft 365, Dynamics 365, Power Platform and Windows 365. Similar to the NCE rollout for Azure, this expansion brings exciting new opportunities, offerings, features and benefits to MSPs.
NCE simplifies subscription management, equipping partners with improved sales capabilities. Key features include:
- Simplified management: Manage all subscriptions under one platform for greater efficiency.
- Enhanced sales tools: Leverage new tools to tailor offerings and drive customer engagement.
- Multiple term options: Cater to diverse customer needs with annual and monthly commitment options.
NCE Updates: Streamlining operations and boosting sales
NCE streamlines subscription management and equips partners with enhanced sales capabilities. Announced in July 2023, NCE Public Sector expands these benefits to non-profit, government, and education clients. This allows you to manage all subscriptions under one platform, increasing operational efficiency and fostering long-term customer commitment with flexible-term options.
Key NCE Changes:
- Enforced commitment periods
- 20% premium for monthly subscriptions
- Grace period for changes or cancellations after activation
- Microsoft-approved qualification process for sector-specific licenses (Public Sector)
Legacy CSP retirement and action required:
Legacy CSP subscriptions are on the brink of retirement, and action is imperative. Microsoft’s meticulous migration plan, set to commence July 1, 2024, emphasizes the urgency for partners to initiate discussions with their customers promptly. This means you should take action before the legacy subscription renewal date, otherwise, Microsoft will begin migrating legacy CSP subscriptions to NCE with annual commitments. This applies to commercial customers who have not migrated to NCE as well.
NCE updates: What’s new?
Commercial and Public Sector implications
NCE introduces annual term offers, competitive pricing, and discounted rates for long-term commitments. It also offers monthly term flexibility, consistent cancellation policies, and streamlined management. The Microsoft Commerce Incentive (MCI) program further incentivizes NCE adoption.
Benefits of NCE Adoption:
- Strategic positioning for future growth
- Sustainable revenue streams with reduced licensing complexity
- Access to three-year terms for Microsoft 365
The move to the NCE has helped partners strategically position their business for future growth and as a result build broader and more sustainable revenue streams in CSP with less licensing complexity and cost.
Guiding public sector clients through change
NCE is expanding to include public sector customers (non-profits, government, and education), offering a streamlined experience for managing subscriptions. This extension is scheduled for a phased rollout starting March 1, 2024 (Wave 1 and 2), with subsequent waves launching monthly.
MSPs are urged to proactively engage public sector clients, aligning with budget cycles, addressing user fluctuations, and emphasizing security priorities. The NCE transition provides an opportune moment to elevate clients’ security posture, upgrading to modern SKUs and addressing vulnerabilities in legacy products. Sherweb will continue to share more detailed information as updates evolve.
Next Steps: Why migrate to NCE now?
Migrating to NCE as soon as possible offers several benefits for MSPs:
- Competitive pricing: Benefit from annual term offers and special discounts.
- Streamlined operations: Manage subscriptions with ease through a central platform.
- Sustainable revenue streams: Foster long-term client relationships with flexible term options.
Supporting your Public Sector clients:
By understanding their budget cycles, user fluctuations, and security priorities, MSPs can effectively guide them through the NCE adoption process.
- Proactive engagement: Collaborate with clients to align NCE adoption with their budget cycles and user fluctuations.
- Security focus: Leverage NCE to upgrade to modern SKUs and enhance client security posture.
Still have questions about NCE? Download our comprehensive NCE guide and unlock the potential of Microsoft’s New Commerce Experience. Need help understanding Microsoft New Commerce Experience? We can help!
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Want to stay on top of Microsoft NCE developments? Understanding the Microsoft ecosystem is complex, but working with a partner like Sherweb can simplify the journey. Get in touch with us to learn more about navigating NCE and maximizing its benefits.
