Why purchasing annual Microsoft cloud app subscriptions benefits your business

In a previous blog post, Amaxra outlined the planned changes Microsoft will make to their monthly per-seat pricing that takes effect on March 1, 2022. As a Gold-level Microsoft Partner and long-time Cloud Solution Provider (CSP), Amaxra has become the go-to partner for many small-to-midsized businesses (SMBs) wanting to optimize their Microsoft software licensing—especially with all the post-2020 changes.

Along with the updated pricing from Microsoft coming in March 2022 is a change in the way partners such as Amaxra order and sell Microsoft cloud-based solutions to our SMB clients. Microsoft refers to this program as the New Commerce Experience or “NCE.” The NCE empowers Amaxra and other Microsoft Partners with powerful tools to price and deliver subscriptions for Microsoft 365, Dynamics 365, Windows 365, and the full suite of Power Platform cloud-based services (including the popular PowerBI business intelligence solutions and the low-code Power Apps business automation services). This is a big change for partners because previously the NCE only had tools for Microsoft Azure cloud service solutions. So, the addition of per-user subscriptions for the “365” suites for businesses in NCE is a smart move by Microsoft. A move that will help streamline processes for both partners and their clients.

What are the subscription terms in the Microsoft New Commerce Experience (NCE)?

Organizations wanting Microsoft 365, Dynamics 365, Windows 365, and Power Platform through a partner with the NCE can purchase either one-month, twelve-month, or 36-month per-user subscriptions. These plans went into effect on January 10, 2022 for all solutions except for Windows 365, which will be offered only on a monthly subscription for the first few months before transitioning to annual plans in the future.

The length of each per-user term is self-explanatory. If you purchase 25 per-user Microsoft 365 licenses for your employees on the monthly term, then you are billed every month for those 25 Microsoft 365 users. If you purchase those same 25 per-user Microsoft 365 licenses on the 12-month (annual) plan, then you can either be billed monthly or pay it all upfront. Business owners should not be surprised to learn that the annual (both the 12-month and 36-month) term plans in the NCE offers a significantly lower rate. Everyone knows that is typical with subscription models to “lock in a low rate” with an annual plan. While the month-to-month subscription provides businesses with greater flexibility, the NCE offers them at a full 20% higher cost than the annual subscription terms. Contract terms can also be mixed for the same product. For example, it would be possible to get 80% of your licensing on annual terms with the lower cost and the remaining 20% on monthly terms in order to have the flexibility to scale down if needed.

How Amaxra can save your business money even with NCE Microsoft pricing increases

Amaxra is offering all Microsoft 365, Dynamics 365, and Power Platform special pricing through the end of June 2022. Purchase or renew your subscription through Amaxra for any of the aforementioned Microsoft cloud-based solutions to get 5% off for annual terms (until March 31, 2022). We are also temporarily pricing all month-to-month terms for Microsoft 365, Dynamics 365, and Power Platform solutions the same as their annual terms until the end of June 2022. That means you won’t have to pay the 20% premium on per-month/per-user subscriptions for six months.

Let Amaxra’s experts optimize your Microsoft cloud services’ licensing

When you trust the Microsoft licensing experts at Amaxra, you get peace of mind when it comes to business IT costs. For over a decade, Amaxra’s consultants have provided SMBs with expert knowledge on how to get the most out of Microsoft subscriptions. If you have questions about how the new pricing and NCE might affect your business, then connect with us to learn how Amaxra can help.

Contact me at rosalyn.arntzen@amaxra.com or call 425 749 7471 if you have any questions or comments on this blog.

about the author

Rosalyn Arntzen

Rosalyn Arntzen, President & CEO of Amaxra, founded Amaxra in 2007 after a successful career working for several multi-national companies around the world. Under her leadership, Amaxra is proud to have been on the Inc 500/5000 fastest growing companies in 2013 and 2016. You can contact Rosalyn at https://www.linkedin.com/in/rosalynarntzen.

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