By Davis Merrey
March 1, 2022

What is Microsoft NCE? 

Microsoft's changes in pricing and commitment terms start March 1. Learn how that affects you.
Microsoft keyboard button

Microsoft has announced changes to their Office 365 and Microsoft 365 programs beginning March 1, 2022. Microsoft is calling this change the NCE or New Commerce Experience. The largest components of NCE that will affect end-users are a price change and the option for a discount with a 12-month commitment. This will be Microsoft’s first price increase since they launched the program in 2011.  

Based on the current Microsoft month-to-month commitment, prices will go up 20-40% depending on the license type. Microsoft has added a 12-month option, which offers a 20% discount from the new price. With the current program, you are able to add or delete individual licenses monthly, and going forward, you will have the option of maintaining that flexibility at the new higher cost or locking into a 12-month term at a 20% discount. If you elect to move to the new annual commitment, you will be locked into license quantities for a full year. At the end of the 12-month term, there will be a 3-day period when you can decrease license quantities before they lock for another year. During the 12-month term, you can increase license quantity or upgrade to a higher-cost license, but you will be not able to either downgrade licenses or reduce license quantity.

If you’re anticipating a consistent or increasing number of licenses required over the next year, I recommend going to the 12-month commitment to provide the best pricing. If you’re anticipating decreasing the number of licenses or are uncertain of the number of users required over the next year, I recommend staying with the monthly option to provide the greatest flexibility.

While Microsoft NCE is an attempt to simplify the decision process involved in the broad range of M365 services, I strongly recommend you engage an IT advisor to help you make these decisions and manage the services for you. 

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About Davis Merrey

Davis, is Owner/CEO of TeamLogic IT of Oklahoma City, part of an international network of franchisees providing IT support for businesses. He brings many years of experience in a variety of technology related industries, leading teams in providing technical solutions that respond to critical customer needs. The company culture is defined by its Mission Statement: “To help our fellow employees and clients be successful”.

Davis earned a BS in Electrical Engineering from the Virginia Military Institute and an MBA in Management from Golden Gate University in San Francisco. He serves on several business related and non-profit boards of directors.