Microsoft is updating its New Commerce Experience (NCE) pricing structure, impacting renewals and new licenses purchased after April 1, 2025. Here’s what you need to know.
What’s Changing?
Starting with renewals and new subscriptions after April 1, 2025, NCE subscriptions with annual commitments paid monthly will incur a 5% premium. This applies to:
- New subscriptions purchased after April 1, 2025.
- Existing subscriptions when they renew after this date.
If your organization currently has an annual commitment with monthly payments, expect an increase in costs at your next renewal after April 1.
Who Will Be Affected?
New Customers: If you choose an annual commitment with monthly payments after April 1, you’ll be subject to the 5% premium.
Existing Customers: The increase will only apply when your subscription renews after April 1, 2025.
Which Subscriptions Remain Unchanged?
Not all subscription types will be affected:
✔ Annual subscriptions paid upfront will not incur the premium.
✔ Month-to-month subscriptions remain unchanged.
How to Avoid the 5% Premium
To prevent additional costs, organizations can transition from annual commitments with monthly payments to annual commitments paid upfront at renewal. This may be a strategic way to manage IT budgets efficiently.
Need Guidance? We’re Here to Help
Understanding Microsoft’s licensing changes can be complex, but you don’t have to navigate them alone. New England Business Technology can help you make the best decision for your business.
