Microsoft has announced that it will transition charities and non-governmental organisations to its New Commerce Experience pricing model. This shift, which aligns with changes already implemented for commercial customers, aims to streamline Microsoft licence subscription management and introduce a more consistent pricing structure. However, this change brings several implications that charities need to consider.
About the New Commerce Experience
The New Commerce Experience (NCE) is Microsoft’s revamped licensing platform designed to simplify and unify the purchasing process for its cloud services. Under NCE, organisations can choose from various subscription terms, including monthly, annual, and multi-year plans, each with different pricing models. This initiative is part of Microsoft’s broader effort to enhance its cloud ecosystem’s efficiency and flexibility.
For-profit organisations moved over to this some time ago. Now Microsoft is ready to transfer charity licensing over
Implications Of The Change For Charities
There are a few points that charities need to consider the move:
Cost Management
One of the primary concerns for charities moving to NCE pricing is the potential increase in costs. While NCE offers discounts for longer-term commitments, the flexibility of month-to-month subscriptions comes at a premium Charities that prefer the agility of monthly billing might face higher overall expenses: for-profit companies experienced an uplift in licensing cost of up to 20% when NCE was implemented.
Budgeting & User Base AssessmentÂ
The shift to NCE requires charities to rethink their licence budgeting strategies. Annual or multi-year subscriptions, though cheaper, require upfront financial commitments. Charities must balance the benefits of potential cost savings against the challenge of securing funds in advance. This shift could necessitate changes in how charities plan and allocate their financial resources over the fiscal year, or a better understanding of how an organisation is due to increase or decrease in headcount in years to come.
Administrative Adjustments
Transitioning to NCE will also involve administrative adjustments. If charities need to understand billing cycles, subscription renewals management, and available discounts or incentives. This is where working with an experienced licensing provider can be of benefit.
Preparing For The NCE Transition
Charities should begin by conducting a thorough review of their Microsoft licences, subscriptions, and usage patterns.
Working with a Microsoft partner such as Akita is an effective way of achieving this. As an experienced provider, we can audit Microsoft licensing and understand if licensing is still needed or if a more cost-effective solution is needed.
Additionally, Akita can work with charities to explore available discounts, promotional offers and wider licensing cost-efficiency.
To start a conversation about Microsoft licensing and the impact of NCE, please get in touch:
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