How Microsoft NCE Will Affect Your Nonprofit Organization
If you are a non-profit organization that uses Microsoft cloud services, you might have heard of Microsoft NCE, or New Commerce Experience. This new way of buying and managing your Microsoft subscriptions will start on January 1, 2024. This blog post will explain what Microsoft NCE is, how it will affect your organization, and your options to prepare for the change.
What is Microsoft NCE?
Microsoft NCE is a new platform that Microsoft is introducing to make purchasing and managing your cloud services easier and more efficient. It will offer you more flexibility, predictability, and simplicity in licensing and billing. It will also enable you to access new features and capabilities to help you grow your organization and achieve your mission.
How will Microsoft NCE affect your organization?
The most noticeable change will be contract commitments, either monthly or annually. The monthly option will be charged at a more premium rate versus an annual commitment.
If you choose the monthly option, know that it comes with a 20% premium, renewal commitment, and monthly billing. Any modifications can only happen during a seven-day window each month, and the billing term option is limited to monthly payments. For the annual commitment, subscription changes are limited to increasing seat quantity or upgrading to a higher product. At the same time, downgrades can only be made or canceled within the initial seven days of provisioning. Billing term options include an annual upfront payment or monthly billing payments.
What options do you have to prepare for the change?
You don’t have to do anything if you are happy with the annual commitment option. You will continue to enjoy the benefits of Microsoft Cloud services, and you will also get some new advantages, such as:
- Improved revenue predictability: You will know exactly how much you will pay for your subscriptions for the whole year, and you will not have to worry about price changes or fluctuations.
- Reduced licensing complexity: You will have fewer subscription options to choose from, and you will have a clear and consistent way of managing them.
- Multiple-term options: Depending on your budget and preference, you can choose between paying for your subscriptions upfront or monthly.
- New sales capabilities and operational efficiencies: You can access new features and tools that will help you optimize your cloud usage, streamline your processes, and enhance your customer experience.
If you prefer a monthly commitment option, you can still have it, but you must pay a 20% premium. This means you will pay more for your subscriptions but have more flexibility to cancel or modify them every month within the seven-day window. Contact your Technical Account Manager for assistance if you want this option.
If you have any questions or concerns about Microsoft NCE, you can read more about it on the Microsoft website.
The Clock is Running
Time is running out, and Microsoft will start moving customers from the old system to the new system in 2024. To avoid problems, you might consider moving before the new year or before your renewal date. There is an exemption for nonprofit, education, and government products, which will remain on the legacy system.
The new system is easier to use and offers more subscription and seat choices. We are here to help.
“What should you do now?”
Begin by consulting with your IT team. Gain insights into your current license procurement and management processes. Evaluate your future needs more closely. Work together with your team to identify the most effective course of action. If you find uncertainty about the next steps, reach out to us; we’re here to assist. Ensuring you move in the right direction with the correct guidance and support during the transition. We aim to prevent you from getting lost in your IT, minimize business disruptions, and help technology work for you instead of becoming a hindrance.
If you oversee IT procurement in your organization, this guide will assist you in not just assessing your organization’s IT but also in creating a list of qualified questions to assess your long-term IT strategy.
