The New Commerce Experience for Microsoft Direct Licensing in 2024 - Frequently Asked Questions

The Microsoft New Commerce Experience (NCE), going into effect on January 11th, 2024, introduces significant changes affecting current users differently based on their existing licensing model and volume. Here's a summary addressing the most frequently asked questions:

  1. Can you elaborate on how the New Commerce Experience (NCE) will affect current users differently based on their existing licensing model and volume?
    • Starting January 11, 2024, Microsoft will migrate all remaining commercial license-based subscriptions to the new commerce at the end of each subscription term.
    • The migration will transition subscriptions to an annual commitment while keeping the existing billing frequency (either annual or monthly).
    • Subscriptions can only be procured on an Annual or Monthly term, locking in subscriptions for a set duration.
  2. Could you clarify the process of adjusting licensing volume on a monthly basis under the new NCE regime?
    • Monthly subscription options under NCE allow for flexibility without long-term commitment, enabling businesses to adjust their seat count each month as needed.
    • However, monthly subscriptions will incur a 20% premium.
  3. What is the degree of flexibility for part-canceling subscriptions outside of the renewal window under NCE?
    • Under NCE, cancellation policies have been updated. Changes are allowed within seven business days after acquiring a subscription. After this period, subscription terms are locked in.
    • This policy applies to software subscriptions, license/seat-based subscriptions, and marketplace offers.
  4. Can you speak more about the exact process to engage with Trusted Tech Team during subscription renewal windows to optimize our licensing setup?
  5. Can you provide some real-world examples of the financial impact of oversubscribing on licenses under NCE?
    • The NCE model features longer contract terms and license quantities can only be increased but not reduced during the subscription term (unless canceled within the first seven days). This necessitates strategic planning regarding license needs to avoid unnecessary expenses.
  6. With the mentioned 10-20% cost advantage through partners like Trusted Tech Team, are there any features or services we would be forfeiting compared to buying directly from Microsoft?
    • No. Partners like Trusted Tech Team offer a 10-20% cost advantage without a compromise on features or services unless otherwise requested or advised.
  7. Can you elaborate more on the training your team receives to maintain their Microsoft products expertise in the rapidly changing tech environment?
    • Trusted Tech Team holds both Microsoft Direct CSP & Microsoft Solutions Partner accreditation to help medium-to-enterprise companies save money and optimize their cloud environment. As one of the first Microsoft Direct CSPs holding all 6 Microsoft Solutions Partner Designations, TTT has the expertise to solve your cloud problems.
  8. What is a licensing assessment, what does it entail, and does it take into account organizations with global locations or remote employees?
    • Free license assessments under NCE are designed to consider an organization's specific licensing needs to ensure the best pricing and support. Licensing assessments can help a variety of organizations, including those with global locations or remote employees. However, the exact details of what these assessments entail would depend on the service provider conducting the assessment​​.

To see if your tenant is eligible for additional savings on Microsoft 365 and Azure, we recommend booking a licensing assessment directly with a Trusted Tech Team licensing engineer.