Then, they get the 16.7 percent discount. However, partners selling new subscriptions for M365 packages have to sell them through NCE – and thus with the 20 percent premium for monthly commitments – unless the customer is upgrading to a higher subscription type or is new to M365. In July, Microsoft rescinded a policy that encouraged partners to move legacy subscriptions under its Cloud Solution Provider program to NCE by January – providing an indefinite delay to when partners need to move existing subscriptions to NCE. The 20 percent premium on month-to-month commitments also punishes customers with seasonal businesses that like to change license counts month to month, Microsoft partners have told CRN.Īnd if customers buy annual commitments to M365 packages, partners may be on the hook paying out the rest of the contract should the customer go out of business or need fewer licenses. … (Dropping the 20 percent monthly premium) would mean that we could still do monthly SKUs with the vast majority of our customers.” ![]() Because we just think that that’s the biggest gap that they have right now. “And we’re more than happy to risk losing our customers to our competitors to have that benefit. “We just would like for Microsoft to give us portability for customers,” Shelton said. We would like for that to continue.”īut Microsoft still has not fixed one of the main issues with NCE – when customers buy an annual commitment, customers are unable to change managed service providers until the contract ends, which can result in partners taking on a customer and forgoing revenue until the end of the contract with the original MSP. And so it was great because they got extra discounts. He continued: “Every customer would talk to us. “Especially back in the early days, when they had the discounts on the annual SKUs (stock-keeping units), we’d be like, ‘Hey, you have got to talk to us in the next 30 days, because maybe we can save you some money.’” “We‘ve had a lot of customers transition up, which I don’t think they would have done if NCE didn’t force them to talk to us,” Shelton said. Lane Shelton, director of licensing for Core BTS – an Indianapolis-based Microsoft partner and member of CRN’s 2022 Solution Provider 500 – told CRN in an interview that the promotion helps his business because he upgrades a lot of customers to the Business Premium subscription.Īt the beginning of the NCE roll out, Core BTS used the conversations with customers to try to upsell them on Microsoft products. In a document explaining the 16.7 percent discount, Microsoft said it created the discount “to enable partners to pitch how Microsoft 365 can help prospective and existing customers ‘Do More with Less’ by consolidating vendors or improving their security and productivity posture with a more premium product.”įor new customers to M365, “This promotion creates immediate cost savings both in product value and price point for new customers while allowing customers and partners to retain the flexibility of a monthly commitment,” according to Microsoft.įor customers interested in upgrading to a higher subscription type, “This promotion is a fantastic opportunity for partners to explore with their existing customers how upgrading to products like Microsoft 365 Business Premium – or expanding their Microsoft 365 investment with standalone products like Microsoft Defender for Business – can save existing customers money through vendor consolidation while providing necessary productivity and security value,” according to Microsoft. ![]() The company announced the promotion on Sept. Did Microsoft Change NCE?ĬRN has reached out to Microsoft for comment. The discount does not work on “legacy” subscriptions – ones made off NCE. The valid M365 plans are Business Basic, Business Standard, Business Premium and Apps for Business. ![]() The discount – aimed at small and midsize customers and called the “Microsoft 365 SMB and New Customer Upsell Promotion for Cloud Solution Provider (CSP) Customers” – is for customers who buy “a low-risk monthly commitment” for a variety of Microsoft 365 plans, Microsoft Teams Essentials and Microsoft Defender for Business, according to an announcement by the Redmond, Wash.-based tech giant. Microsoft launched a 16.7 percent discount valid until June 30 for customers new to Microsoft 365 and existing customers who want to upgrade to a more premium product – a help to some partners still dealing with the rollout of the “new commerce experience” platform, while still leaving in place some issues partners have with NCE.
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