Microsoft New Commerce Experience (NCE) for Microsoft 365, Power Platform and Dynamics 365 from Telstra
Q: What is the Microsoft New Commerce Experience (NCE)?
Microsoft is constantly updating and enhancing its Cloud Service Provider (CSP) model to support the changing needs of today’s business. The New Commerce Experience is a global program that Microsoft is introducing to reduce complexity and make life simpler for our partners and customers. This change will impact Microsoft 365, Power Platform and Dynamics 365 and is an extension of the changes recently made in Azure.
Q: When is the New Commerce Experience from Telstra launching?
From 10 March 2022, all new subscriptions for Microsoft 365, Power Platform and Dynamics 365 licences will be through the Microsoft NCE platform.
Q: What changes will Microsoft’s NCE bring?
Microsoft’s NCE is bringing significant changes to Microsoft 365, Power Platform and Dynamics 365 from Telstra:
- Updated Telstra terms and conditions – When purchasing subscriptions under NCE, you’ll need to agree to the updated Telstra terms and conditions that cover the NCE offerings. The updated terms and conditions can be found here.
- New term subscriptions – You’ll now be able to purchase annual term subscriptions as well as monthly terms. The new annual terms will offer a discount of up to 20% against NCE month-to-month pricing, and include price protection for the entire term. At the launch of NCE through to June 30, Telstra will be offering a special promotion around NCE Monthly terms – see ‘What’s the NCE launch offer.’
- New cancellation Terms – You’ll have a period of 7 days from the time your order is placed or term renewed to cancel your monthly or annual subscriptions. Once the 7 days have expired your cancellation request will be scheduled for the end of your current term and you will continue to be billed for the remainder of the subscription term. You will continue to have access to your subscription until it expires.
- New user licence rules – If you wish to increase the number of user licences for your NCE subscription, you can do this at any time. You can, however, only decrease the number of user licences during the 7 day window at term renewal only.
Q: Do I need to sign a new Telstra agreement for NCE?
When you buy a new NCE subscription via the Telstra Apps Marketplace, you’ll need to accept the updated Terms and Conditions of Telstra’s Microsoft Cloud Services. These terms can be found here. Please take time to familiarise yourself with the updated terms that apply to purchases from 10 March, 2022.
Q: What about my existing Microsoft 365, Power Platform and Dynamics 365 subscriptions?
Your existing subscriptions on the 'legacy' platform will continue to operate as usual under the terms and conditions that apply to purchases before 10 March, 2022. It is important to note that your existing subscriptions will need to be migrated to the NCE platform during 2022, but we will be in touch to let you know when you will need to move and any steps you need to take. Migrations to NCE will not involve any outage or service interruption.
Q: Can I have a mix of 'legacy' and NCE subscriptions?
Yes. From 10 March 2022, all new subscriptions will be provided on the Microsoft NCE platform under the updated terms and conditions, but your existing subscriptions will continue to operate under the terms and conditions that apply to purchases before that date. You may continue to operate both legacy and NCE subscriptions until all of your legacy subscriptions are migrated to the NCE platform. We’ll let you know in advance when that will happen.
Q: What’s the NCE launch offer?
From 10 March 2022, NCE monthly term user licence charges will align with annual term user licence charges until 30 June, 2022. After that date, NCE monthly term user licence charges will be around 20% more expensive than NCE annual term user licence charges. We will notify customers when the price of NCE monthly term user licences are going to change.
Q: Why would I choose an annual term contract if it’s the same price as a monthly contract during the NCE launch promotion?
Annual term subscriptions on NCE lock-in the user licence price for the subscription term. Annual terms are more suitable for users who are permanent, stable staff members who require access for the full period of the subscription term. From 30 June 2022, monthly term subscriptions will attract an approximately 20% price premium over annual term subscriptions.
Q: Will my NCE subscription auto-renew?
Yes. Both monthly and annual term subscriptions will automatically renew at the end of your subscription‘s term unless you schedule a cancellation (post the 7 day window) or cancel within the 7 day window at your term renewal.
Q: How will my NCE subscriptions from 10 March 2022 differ from my existing 'legacy' Microsoft 365 (M365) subscriptions?
- Plan options – Legacy subscriptions are only available as a monthly term. On NCE, you can choose between monthly and annual term subscriptions.
- Cancellation – You can cancel legacy subscriptions at any time. On NCE, you can only cancel subscriptions within a 7 day period after purchase or at term renewal.
- User licence changes – On legacy subscriptions you can increase or decrease licence numbers at any time and charges will be pro-rated. On NCE subscriptions, you can only decrease licences within a 7 day period at term renewal. You can increase licences at any time within the term.
Q: What are my payment options on NCE subscriptions?
Monthly term subscriptions are billed monthly in advance. Annual term subscriptions can be billed upfront at time of purchase.
Q: What happens if I cancel my NCE subscription?
You’ll have a period of 7 days from the time your order is placed or your term renewal to cancel your monthly or annual subscriptions. Once the 7 days have expired your cancellation request will be scheduled for the end of your current term and you will continue to be billed for the remainder of the subscription term. You will continue to have access to your subscription until it expires.
Q: Where can I determine my term renewal date for a subscription?
You can view the contract end date for any subscription in the Telstra Apps Marketplace.
Q: Why is there only a limited period for cancelling or reducing seat numbers?
Microsoft have advised that the limited cancellation period is in line with policies used in other Microsoft purchasing motions and how their competition operates. If you’re not sure you can commit to an annual term, we encourage you to consider the monthly term option so you can cancel at the end of any given month with no obligation of further payment.
Q: Why is Microsoft taking away the flexibility of cancelling or reducing seats whenever I want? And why am I being charged more for the new monthly term option (after 30 June 2022)?
Microsoft have advised that the enforcement of a cancellation policy in their New Commerce Experience is designed to bring their CSP sales motion into alignment with other purchasing motions and Microsoft licensing programs such as the Enterprise Agreement. This gives you a consistent purchasing experience and you’re subject to the same terms and conditions for the cloud offerings you buy.
The cancellation enforcement in New Commerce Experience ensures that you’re committing to the entire term, and you’ll benefit from the more favourable pricing of long-term subscriptions.
This is similar to the way you pay more for a refundable airline ticket or for an online subscription to premium content you can cancel at any time instead of paying for a year up front (which costs less per month on an annualised basis). Also, the premium pricing for the monthly term option is in line with standard practice in the Microsoft Web Direct program, with licensing programs of competitors, and in other subscription-based businesses and industries.
Note: From 10 March 2022, NCE monthly term user licence charges will align with annual term user licence charges until 30 June, 2022. After that date, NCE monthly term user licence charges will be around 20% more expensive than NCE annual term user licence charges. We will notify customers when the price of NCE monthly term user licences are going to change
Q: I need more seats for Microsoft 365 during certain times of year when I have more employees on staff. Since I can’t reduce the number of seats on an annual subscription at the middle of the term, can I have some seats on a monthly term and others on an annual term on the same offer?
Yes. You could have both a monthly term and an annual term subscription for the same seat-based offer at the same time with the appropriate number of seats in each term to accommodate permanent and seasonal employees.
Q: Can I move subscriptions from NCE back into legacy on Microsoft 365?
No. Rollback will not be supported as the ‘legacy’ platform will be decommissioned in the future.
Q: How will NCE subscriptions appear on my bill?
NCE purchases will appear with the suffix ‘NCE’ on your credit card bill or Telstra bill.
Q: I have more questions. Where can I get help?
If you’re a Telstra partner or a customer, please reach out to your Telstra sales executive, or contact us via MicrosoftNCE@team.telstra.com