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Microsoft 365 (NCE) – Subscription Pricing and Licencing Changes

In March 2022 Microsoft will implemented a number of changes to the way that customers purchase and manage their licences through the (CSP) Program.

Overview – Microsoft NCE

In August 2021 Microsoft announced an upcoming change to Microsoft 365 pricing that is due to be implemented and effective from the 1st of March 2022.

In addition to the pricing changes Microsoft will also be making changes to the subscription options available for commercial customers this will be known publicly as the NCE (New Commerce Experience).

Licence Term Updates

In January 2022, Microsoft launched the New Commerce Experience (NCE). NCE is the latest pricing model for Microsoft 365, Dynamics 365, Windows 365, and Power Platform subscriptions.

Microsoft NCE was designed by Microsoft to reduce complexity in billing processes and provide cost savings for longer term subscriptions.

Please Note: These changes will impact the way all customers purchase Microsoft 365 licences, under the “NCE” you will have the option of either an annual or monthly subscription, and your subscription pricing will differ from your current Microsoft 365 subscription pricing.

Since the launch of Microsoft 365 (formerly known as Office 365) customers have had the freedom to increase and reduce the number of licences on a monthly basis providing only 30 days’ notice to remove a licence, this freedom was offered without incurring any additional charges for doing so, under the new licencing model this will change depending on the subscription option you decide to choose.

NCE Subscription Options

Licencing under NCE will now be offered on Monthly, Annually or 36 Month Minimum Term.

NCE Monthly Subscription

Under the NCE “New Commerce Experience” you will have the ability to purchase your Microsoft 365 licences on a monthly basis without an annual commitment. Microsoft is now offering this to provide flexibility to customers that need to make monthly changes to their Microsoft 365 or Office 365 licences plans and seat count.

Licenses can be easily decreased or cancelled within 72 hours of being purchased or alternatively at the end of the monthly term.

This is much like the current licencing model however under the NCE monthly subscriptions will come at a 20% price increase across all licence plans.

NCE 12-month Subscription

Through the NCE, you’ll have the opportunity to commit to your licences through a 12-month subscription. You will also have the option to be billed on a monthly or annual basis.

With the 12-month subscription, your pricing will be locked in for the entire term – allowing you to benefit from the additional cost savings of any price increases due in that time. This subscription will allow you to increase but not decrease the seat count.

NCE 36 Month Subscription

As a part of NCE, Multi Year Pricing will also be available. This will allow for you to secure 3-year pricing upfront for longer term commitment. Customers who consume via this model will have the option to be billed monthly, annually, or upfront. Similarly, to 12-month subscription term you will not be able to reduce the seat count for the duration of the term.

Licence Cancellation Policy

Microsoft are enforcing a strict 72-hour cancellation window, after 72 hours of the term, the subscription cannot be cancelled and payment for the remainder of the term must be made.

Licence Pricing

Final GBP pricing will only be available when released by Microsoft 30 days before NCE becomes effective this is expected to be announced on the 1st of Feb 22.

If you are an existing Microsoft 365 customer, we will be sending an overview of the confirmed pricing as soon as this is made available to us, this will provide options based on your current subscription and current vs new pricing based on the various term-based options under the NCE.

We will also be providing a quick and easy form to confirm your choice of subscription term, this will need to be completed no later than the 1st of March.

Please note: If we do not receive a response from you before March 1st your account will automatically be changed to the NCE monthly subscription. You will still have the option to change your subscription term after this date to 12 or 36 months however this can only be done at the end of the monthly term.


Monthly TermAnnual Term
Payment OptionsMonthlyMonthly and Annually
Cancellation Policy72 Hours or at end of month72 Hours or end of term
Seat ChangesIncrease always, Decrease within cancellation / adjustment windowIncrease always, Decrease within cancellation / adjustment window
Pricing20% Increase + Previously Announced Price IncreaseStandard + Previously Announced Price Increase
BenefitsFlexibilityCost savings and price locking
Overview of changes to Microsoft 365 licencing

Please contact us via email support@hixongroup.com if you have any questions or concerns. Additionally, you can also call us on 01782 694288, we’ll be glad to help you with any enquiries.

Frequently Asked Questions

Are there any “exceptions” to the 72-hour cancellation policies for annual or 36-month subscriptions?

There will be no exceptions made by Microsoft. They have been very firm with their cancellation policy. Should the customer need more time to assess the subscription value, Microsoft encourages either a Trial or Monthly Subscription (at a price premium) to ensure they’re not locked in for the full term.

Can a customer mix and match – add majority on long term subscription but add month to month on top to scale up and down?

Yes, the customer can mix subscriptions. We encourage all partners to use this 80:20 model. For example, to predict fixed subscriptions (Full Time Employees) with the annual NCE subscription (80%) and all non-fixed subscriptions with the Monthly Premium NCE Subscription (20%).

Can I change an Annual Term commitment offer to Monthly commitment offer?

Microsoft advise this is only possible with the first 72 hours of placing an order for an Annual commitment offer and would require you to cancel the annual commitment offer

Updated on April 25, 2023

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