IT'S TIME FOR THE FINAL NCE TRANSITION
This is the end of CSP legacy commercial subscriptions. Get ready!
It's crucial that cloud solution providers (CSPs), partners and their customers understand how the CSP legacy migrations will affect their Microsoft business. At Arrow, we're ready for the change and here to help you navigate what's to come in 2024.
NCE RECAP
The New Standard for CSP Commerce
Microsoft's cloud commerce platform, which replaced the legacy CSP program, was created to offer a simplified pricing and licensing model, a more flexible subscription management system, and improved self-service capabilities. NCE provided customers access to similar pricing and terms across any transaction model.
The changes began in 2019 with NCE for Microsoft Azure and then rolled out for seat-based products like Microsoft 365, Dynamics 365, Windows 365 and Power Platform. The new program, which became generally available in January 2022, includes fixed commitment terms of 1-3 years and a monthly option.
Microsoft will begin auto-migrating all CSP commercial subscriptions in the legacy system to new commerce in January 2024.*
All legacy subscriptions that Microsoft migrates are set to an annual term with the same billing plan and seat counts the customers had in legacy.
This Microsoft-led migration occurs on the subscription renewal date, starting with all subscriptions set to renew in January 2024 and continuing throughout the 2024 calendar year.
Partners will have seven days after migration is complete to change the subscription term and quantity or cancel the subscription if necessary.
Please note: CSP Government Community Cloud, education and non-profit legacy offers are delayed.
Due to potential business disruptions in making system changes at the end of the calendar year, Microsoft-led public sector migrations to NCE will happen in the calendar year 2024. The Arrow team will update partners with a revised timeline soon.
NEXT STEPS
1
Migrate your subscriptions manually before the renewal date. (You can let Microsoft auto-migrate subscriptions, but we don't recommend it).
2
Use ArrowSphere, our cloud marketplace and management platform, to migrate subscriptions before the renewal date. Access integrated business rules, tools for staged migration and business-building insights.
BUSINESS IMPACTS
What does this mean for you? Proactively moving your business to NCE will help you more accurately predict revenue, reduce licensing complexity, and drive operational efficiencies and new sales prospects. In addition to setting customized terms, proactive migration allows you to incorporate the change with indirect resellers and others in your partner ecosystem.
If partners wait until Microsoft migrates their subscriptions, the new subscription will be set to an annual term commitment without the possibility of decreasing seats or cancelling the subscription for an entire year
ADDITIONAL RESOURCES FOR A SEAMLESS TRANSITION
For more information get in touch with your local Arrow representative.
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