OCTOBER 29, 2021

ActivePlatform meets the New Commerce Experience

New Commerce Experience (NCE) is a multi-phase journey started back in 2019. First, Microsoft transferred the legacy Azure to the modern Azure Plan. Now, throughout 2021, NCE will be gradually extended to other Microsoft products. Selling Microsoft 365, Dynamics 365, and Power Platform becomes available in CSP under the new billing rules. According to Microsoft, NCE also brings new opportunities for CSP resellers and cloud customers.

ActivePlatform is changing too. We are actively working to support the transition of the CSP business to NCE. Let us give a brief overview of the upcoming transformation and share our expectations from NCE.

Why Microsoft goes to NCE

NCE reflects global changes in subscription and cloud services business. To respond to the new reality, Microsoft follows partner requests and customer needs. We will see greater standardization since Microsoft intends to streamline the experience of selling and managing its services. On the other hand, NCE is all about greater flexibility and easier choice for customers. Both CSP resellers and end customers will benefit from the new tools and billing terms under NCE.

What does NCE mean for resellers

The new experience for CSP resellers includes operational changes and reduction of the management cost and licensing complexity.

Invoices for Microsoft 365, Dynamics 365, and other license-based subscription offers will be issued between the sixth and eighth day of each month. Like Azure Plan, they will require resellers to adjust their billing days. At the same time, NCE considers easier processing of subscription and billing data.

Moreover, NCE encourages customers to use new long-term commitments allowing CSP resellers to forecast their revenue more precisely. Since Microsoft bets on the commitment terms, CSP resellers will also take fewer actions throughout the year. As a result, it will cut the management expenses, increase operational efficiencies and profitability.

What does NCE mean for customers

Customers can expect more billing options than now. First, these new options will include discounted pricing in case of the commitment terms. Such obligation to use the ordered number of licenses for up to three years will be combined with the new cancellation and refund policies.

Second, the monthly term offers will cost more than annual term ones and allow customers to cancel their subscriptions without penalty. Microsoft recommends combining monthly and annual term subscriptions to accommodate a seasonable and constant workforce.

Sum it up

Microsoft promotes long-term offers and the standardized approach to its licensing offerings. NCE will help build sustainable revenue for CSP resellers and reduce operational costs, while end customers will get rewards in pricing for the longer terms.

ActivePlatform, the market player in automated cloud service brokerage systems, will take advantage of these changes introduced in NCE. We will also offer a migration tool for a smooth transition from legacy offerings to NCE.

Contact us for more information about how ActivePlatform will adopt the new commerce experience.