{"id":38115,"date":"2021-10-19T11:55:57","date_gmt":"2021-10-19T10:55:57","guid":{"rendered":"https:\/\/www.n-able.com\/?p=38115"},"modified":"2022-10-12T12:05:14","modified_gmt":"2022-10-12T11:05:14","slug":"understanding-microsofts-new-commerce-experience-for-seat-based-offerings","status":"publish","type":"post","link":"https:\/\/www.n-able.com\/fr\/blog\/understanding-microsofts-new-commerce-experience-for-seat-based-offerings","title":{"rendered":"Understanding Microsoft\u2019s New Commerce Experience for seat-based offerings"},"content":{"rendered":"<p class=\"p4\"><span class=\"s1\">Cast your mind back to 2019. You may remember Microsoft launching the\u00a0<a href=\"https:\/\/blogs.partner.microsoft.com\/mpn\/grow-your-business-with-the-new-commerce-experience-for-azure-in-the-csp-program\/\" target=\"_blank\" rel=\"noopener\"><span class=\"s2\">New Commerce Experience for Azure<\/span><\/a><\/span><span class=\"s3\">.<\/span><span class=\"s1\"> The aim of this launch was for partners to improve their value-added services and encourage customers to commit to Azure.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">Microsoft recently announced it was extending the New Commerce Experience to include <a href=\"https:\/\/blogs.partner.microsoft.com\/mpn\/coming-to-the-cloud-solution-provider-program-seat-based-offers-in-new-commerce\/\" target=\"_blank\" rel=\"noopener\"><span class=\"s2\">seat-based subscriptions<\/span><\/a><\/span><span class=\"s3\">.<\/span><span class=\"s1\">\u00a0The seat-based model is specifically for licenses and subscriptions used with Microsoft 365, Dynamics 365, Windows 365, and Power Platform.<\/span><\/p>\n<p class=\"p4\" style=\"text-align: center\"><span class=\"s1\"><b><i>\u201cMicrosoft is investing in product innovations, better tooling, and access to new business opportunities that enable partners to grow their CSP revenue and provide more options to customers,\u201d\u00a0<\/i><\/b>explains\u00a0Dan Truax, General Manager, Global Partner Solutions, Microsoft.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">The reason for this extension is because Microsoft wants partners to align their way of license purchasing.\u00a0It will also help them to forecast profits more accurately, improve margins, and secure customer contracts for longer.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">We know Microsoft loves to continuously evolve; but this major news has come as a surprise. Partners should start looking at these changes and understand how the extension will affect their current way of working.<\/span><\/p>\n<h2 class=\"p5\"><span class=\"s1\">What exactly is the New Commerce Experience for seat-based offerings?<\/span><\/h2>\n<ol>\n<li class=\"p4\"><span class=\"s1\">It is a series of changes, new SKUs, and business models to help simplify and standardize Microsoft\u2019s offerings.<\/span><\/li>\n<li class=\"p4\"><span class=\"s1\">Its role is to streamline and improve the end-customer experience of using Microsoft services, buying and managing subscriptions from Partners.<\/span><\/li>\n<li class=\"p4\"><span class=\"s1\">It affects how customers are billed for their licenses and subscriptions, but not how they interact with their license selection.<\/span><span class=\"s4\"><br \/>\n<\/span><\/li>\n<\/ol>\n<h2 class=\"p4\"><span class=\"s1\">And the benefits?<\/span><span class=\"s5\">\u00a0<\/span><\/h2>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">It gives Direct Partners more opportunity to sell or upsell larger seat numbers.<\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">There will be new tools to reduce management costs and licencing complexity.<\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">More flexibility to manage services.<\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">Simplified billing experiences.<\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">It encourages long-term business strategies.<\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">NCE will help to forecast revenue more accurately.<\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">There are new pricing, add-on options, and discounts.<\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">Microsoft will launch incentives to direct Partners, indirect providers, and indirect resellers within the CSP program.\u00a0(<b>Note that any Microsoft Partner who doesn\u2019t make the transition to the NCE may lose their incentives on their current legacy offerings.)<\/b><\/span><\/li>\n<\/ul>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">Trials will auto-convert, meaning fewer manual conversions to paid subscriptions.<\/span><\/li>\n<\/ul>\n<h2 class=\"p5\"><span class=\"s1\">And the big change?<\/span><\/h2>\n<p class=\"p4\"><span class=\"s1\">Microsoft has brought in fixed commitment terms for one-to-three-year contracts. The longer the term, the bigger the discount.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">If you choose to stay on a monthly term option, there will be a 20% premium added to this mode of payment.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">This 20% cost is something Partners will need to absorb if they don\u2019t shift to annual contracts.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">It\u2019s crucial to think strategically about this commitment. Month-by-month may be a more flexible way of licensing, but it now comes at a price.<\/span><\/p>\n<h2 class=\"p5\"><span class=\"s1\">The breakdown<\/span><\/h2>\n<p class=\"p4\"><span class=\"s1\">Let\u2019s dive a little deeper into the key takeaways. There are a few things to be aware of.<\/span><\/p>\n<h2 class=\"p8\"><span class=\"s3\">1. Month-by-month contracts now come with a premium<\/span><span class=\"s4\"><br \/>\n<\/span><\/h2>\n<p class=\"p6\"><span class=\"s1\">Partners are going to want to relook at the way they manage their subscription and license business.<\/span><\/p>\n<p class=\"p8\"><span class=\"s1\">Microsoft is adding a 20% premium onto month-by-month terms in the CSP Program and trying to force the community into annual or multi-year contracts.<\/span><\/p>\n<p class=\"p8\"><span class=\"s1\">In addition, there will be a 15% increase on all products in 2022. So, that\u2019s actually a whopping 35% increase if customers stay on month-by-month contracts.<\/span><\/p>\n<p class=\"p8\"><span class=\"s1\">Not all customers will be able to make this shift, however moving customers to longer-term contacts will bring greater profitability for CSPs. There will be less seat changes needed during the year with no added premiums.<\/span><\/p>\n<h2 class=\"p4\"><span class=\"s3\">2. Cancellation policies are changing<\/span><\/h2>\n<p class=\"p4\"><span class=\"s1\">There is a new enforced cancellation policy for customers to avoid prorated refunds on subscriptions.\u00a0<b>There will be no refunds given after seven days<\/b>. You can increase seat numbers and changes throughout the year, but you can\u2019t decrease.<\/span><\/p>\n<h2 class=\"p6\"><span class=\"s3\">3. Billing is easier<\/span><\/h2>\n<p class=\"p6\"><span class=\"s1\">The New Commerce Experience gives Partners a more simplified billing experience. With the new billing experience you can:<\/span><\/p>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\"><span class=\"s1\">Consolidate your billing and invoicing using your businesses currency.<\/span><\/span><\/li>\n<li class=\"li7\"><span class=\"s1\">Have consistent monthly billing dates rather than mid-month billing dates that vary across multiple tenants.<\/span><\/li>\n<\/ul>\n<p class=\"p6\"><em><span class=\"s1\">Something to note: Annual prices will stay the same even if you increase seats mid-term. They will just be prorated for the remainder of the term which will show on a monthly invoice.<\/span><\/em><\/p>\n<h2 class=\"p4\"><span class=\"s1\">\u00a0<\/span><span class=\"s3\">4. Put March 2022 in your calendar.<\/span><\/h2>\n<p class=\"p4\"><span class=\"s6\">\u00a0<\/span><span class=\"s1\">By March 2022 any new subscription in M365, D365, W265, and Power Platform will automatically start as a New Commerce Experience plan.<\/span><\/p>\n<p class=\"p4\"><span class=\"s1\">You have from October 21 to March 22 to explain to customers how the new billing and commitments work and get them to agree to move to annual contracts.<\/span><\/p>\n<h2 class=\"p5\"><span class=\"s1\">What to do next?<\/span><\/h2>\n<p class=\"p4\"><span class=\"s1\">The NCE for seat-based offerings will be available to Microsoft Partners from 14\u00a0October 2021 with Partners needing to make the transition by March 2022. There is a big task at hand, so the sooner you start looking at this, the better.<\/span><\/p>\n<p class=\"p4\" style=\"text-align: center\"><span class=\"s1\"><i>\u201cThough you can take a phased adoption approach, keep in mind that new subscription orders, offers, and renewals for seat-based offers in the CSP program will be exclusive to the new commerce experience beginning in March 2022\u2014so it\u2019s critical to plan accordingly,\u201d<\/i>\u00a0says\u00a0Dan Truax, General Manager, Global Partner Solutions, Microsoft.<\/span><\/p>\n<p class=\"p4\"><span class=\"s3\">Here are our tips to getting on top of the New Commerce Experience:<\/span><\/p>\n<h2 class=\"p6\"><span class=\"s1\">1. Move month-to-month contracts to yearly terms, (if customers agree.)<\/span><\/h2>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">Talk them through the benefits of the annual agreement.<\/span><\/li>\n<li class=\"li7\"><span class=\"s1\">Avoid the 20% month-by-month premium.<\/span><\/li>\n<li class=\"li7\"><span class=\"s1\">Look at the number of full-time users and seasonal users to help advise on the contract type and percentage of annual vs. month-by-month users.<\/span><\/li>\n<\/ul>\n<h2 class=\"p6\"><span class=\"s1\">2. Work with your distributor to learn how they are managing the rollout.<\/span><\/h2>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">When and how can you convert subscriptions?<\/span><\/li>\n<li class=\"li7\"><span class=\"s1\">How can you keep costs down?<\/span><\/li>\n<li class=\"li7\"><span class=\"s1\">Talk about terms.<\/span><\/li>\n<li class=\"li7\"><span class=\"s1\">Are there any transition promotions?<\/span><\/li>\n<li class=\"li7\"><span class=\"s1\">Will trials auto-convert?<\/span><\/li>\n<\/ul>\n<h2 class=\"p6\"><span class=\"s1\">\u00a03. Get organised<\/span><\/h2>\n<ul class=\"ul1\">\n<li class=\"li7\"><span class=\"s1\">Avoid multiple anniversary dates. If you can, move subscriptions to NCE on the same date.<\/span><\/li>\n<li class=\"li7\"><span class=\"s1\">For invoicing peace of mind, manage your customers well. Some will need the same product on both monthly and annual term contracts, and it could get confusing.<\/span><\/li>\n<\/ul>\n<h2 class=\"p5\"><span class=\"s1\">Cloud User Hub can help<\/span><\/h2>\n<p class=\"p4\"><span class=\"s7\">Besides our Microsoft 365 license-based support, <a href=\"https:\/\/www.n-able.com\/products\/cloud-user-hub\" target=\"_blank\" rel=\"noopener\"><span class=\"s8\">Cloud User Hub<\/span><\/a> will be adding support for the new seat-based offers allowing you to transition the remainder of your cloud portfolio to the new commerce experience. We will integrate support for seat-based offers in Cloud User Hub with a gradual roll-out.<\/span><\/p>\n<p><a href=\"https:\/\/www.n-able.com\/products\/cloud-user-hub\/trial\" target=\"_blank\" rel=\"noopener\">Try Cloud user Hub today<\/a> or <a href=\"https:\/\/www.n-able.com\/products\/cloud-user-hub\/demo\" target=\"_blank\" rel=\"noopener\">book a demo<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cast your mind back to 2019. You may remember Microsoft launching the\u00a0New Commerce Experience for Azure. The aim of this launch was for partners to improve their value-added services and&#8230;<\/p>\n","protected":false},"author":98,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"class_list":["post-38115","post","type-post","status-publish","format-standard","hentry","topic-cloud-computing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Understanding Microsoft\u2019s New Commerce Experience for seat-based offerings - N-able<\/title>\n<meta name=\"description\" content=\"With Microsoft extending the New Commerce Experience to include seat-based subscriptions.\u00a0What does this mean for your MSPs and CSPs?\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.n-able.com\/fr\/blog\/understanding-microsofts-new-commerce-experience-for-seat-based-offerings\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding Microsoft\u2019s New Commerce Experience for seat-based offerings - 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