Everything You Need to Know About Changes to Microsoft CSP Program in 2022
January 06, 2022
As a Microsoft Cloud Solution Provider (CSP), BDO Digital can directly manage a client’s entire Microsoft cloud lifecycle. Businesses who purchase their Azure and Microsoft 365 licensing via a CSP, like BDO Digital, can add value to their business via support, billing flexibility, and advice.
Microsoft has announced they will be changing the CSP program by introducing the New Commerce Experience (NCE) with offers like Microsoft 365, Dynamics 365, Windows 365, and Power Platform. Clients who want to adopt the cloud within their organization while also managing their cloud and software spend can do so by working directly with BDO Digital.
Microsoft New Commerce Experience — What You Need to Know
These changes will apply to CSP licensing for Microsoft 365, Dynamics 365, Windows 365 and Power Platform subscriptions. Azure CSP subscriptions will not be affected.
Previously, the Microsoft CSP program offered both monthly and annual subscriptions. Customers could also choose to pay monthly or annually. With NCE, customers have the same subscription and payment options with a few important changes.
- Price increase for monthly subscriptions
A 20% price increase from Microsoft will be applied for monthly subscriptions. However, promotions will be offered January through June 2022, which match the legacy annual term price.
- Enforced cancellation policy
With NCE, Microsoft enforces a 72-hour window to cancel subscriptions. If subscriptions are not cancelled within 72 hours, clients will pay for the remainder of the entire subscription term.
- Seat reduction policy change
For a client to reduce seats, a subscription must be modified in the newly enforced 72-hour window. Clients are still able to increase seats and upgrade subscriptions after this 72-hour window.
Microsoft NCE Timeline:
According to Microsoft, the CSP changes are expected to take place in 2022, but it won’t happen overnight. BDO Digital clients can expect a transition to NCE, with various changes happening early in the year.
- January 2022
General Availability of seat-based offers under NCE and the introduction of a promotional offer on all NCE annual subscriptions (5% discount) will be available January through March 2022. This promotion applies to all seats added per subscription with a cap up to 2400 seats. Promotions will also be available from January through June 2022 on all NCE monthly subscriptions to match the current legacy annual costs (also applies to all seats added per subscription with a cap of 2400 seats).
- March 2022
In March, it will be required that all new subscriptions be purchased under NCE program.
- July 2022
Starting in July, all renewals must take place in NCE. No renewals will be allowed in the legacy CSP.
- June 2023
All legacy CSP subscriptions will officially be retired.
Some Things Change, Some Stay the Same
While this may seem like a lot of change initially, a few key components of CSP will stay the same. This includes product availability and support. Products that were available on legacy CSP will also be available on the NCE. And just like with legacy CSP, clients will still enjoy the same exceptional support from the BDO Digital team.
BDO Digital is here to help you navigate these changes to make the transition as smooth and seamless as possible. For any questions or concerns, please do not hesitate to contact us.