Your guide to leveraging NCE pricing to get the best value

Renewing your Microsoft Licensing Agreement is an opportunity to align your IT strategy with your business goals. It allows you to take advantage of the latest technologies, optimise costs, and ensure compliance with industry standards. While this might seem straightforward at first glance, to achieve the best value and biggest discounts, it’s often more complex than it appears and navigating the renewal
process requires careful planning.

In this Blog we will walk through what you need to know about the new Microsoft Licensing rules,
when to get the best value from your renewal, and how to review your licencing estate to get the
best value and lowest costs.

Understanding the New Commerce Experience (NCE) License model

Since 11th January 2024, all commercial subscriptions have been renewed onto the New
Commerce Experience (NCE) license model, which introduced several new rules and
capabilities that have significantly affected licensing costs and are aimed at providing Microsoft
customers more flexibility and commercial control. A crucial aspect to be aware of is that
auto-renewing your licences can place you on the most expensive and least flexible plan
available and many organisations are missing opportunities to reduce costs and increase
licensing flexibility.

What does the NCE license model provide?

1. Flexibility in Service Management: NCE allows for better control over subscription
   renewals and the ability to schedule changes at the end of terms.
2. New Pricing and Add-On Options: NCE offers more flexible ways to acquire add-on
   services and introduces new monthly term options
3. Simplified Billing: Microsoft have streamlined billing with options for monthly, annual, or
   three-year terms, making it easier to manage and predict costs
4. Enhanced Incentives: NCE enables Microsoft to provide incentives for a wide range of
   licenses, supporting organisations in transitioning to the new License model.

Golden Zone of Renewals -1st February to March 31st

There are some key changes to Microsoft pricing that ensure organisations can get the best
value and lowest renewal costs before March 31st, 2025.

• Avoiding the 5% Price Increase: If you renew your annual NCE plan with monthly
  payments, you’ll see a 5% price bump. If you switch to fully prepaid annual, you will avoid
  this 5% increase altogether.
• Renewal Timing: If your renewal date falls before April 1, you won’t see the price hike until
  your next renewal cycle. For instance, a March 2025 renewal means no price jump until
  March 2026.
• Taking Advantage of Currency Adjustments: Microsoft is reducing UK subscription
  prices by approximately 5% due to currency adjustments. This reduction is effective from
  February 1st, 2025, and can help offset the upcoming price increase
• Locking in Current Pricing: By renewing your agreement before April 1st, you can lock in
  the current pricing and avoid any immediate cost increases

Leveraging the NCE Model for Licensing Renewals

The NCE licensing model is designed to make managing Microsoft product subscriptions more
efficient and cost-effective and allow organisations to create tailored Licensing agreements to
best suit their needs. To obtain the full benefit of an NCE license agreement there are several
ley levers you can control that will change the price you pay and how you align your licences to
you users.

• Optimising Subscription Terms: The NCE model offers various subscription terms,
  including monthly, annual, and three-year options. By analysing usage patterns and
  business needs, you can choose the most cost-effective term. For example, annual or
  multi-year subscriptions often come with discounts compared to monthly terms, leading to
  substantial cost savings.
• Adjusting License Quantities: You can mix license type and terms, and then upgrade
  and downgrade licenses within your contractual commitment, to adjust the number of users as needed. This flexibility ensures that you are not paying for more licenses than you
  require.
• Leveraging New Pricing and Add-Ons. The NCE model introduces new pricing options
  and the ability to acquire add-ons independently of base offers. This allows you to
  customise your licensing agreements to include only the features and services you need,
  avoiding the cost of unnecessary add-ons.
• Streamlined Billing and Predictable Costs: Enhanced billing options, such as
  consolidated billing and consistent billing dates, simplify financial management. These
  more predictable billing cycles help you plan and budget more effectively, reducing the risk
  of unexpected costs.
• Proactive License Management: Regularly reviewing and optimising licenses ensures
  that organisations stay compliant with Microsoft’s licensing terms and avoid penalties. By
  proactively managing licenses, you can identify and eliminate unused or underutilised
  licenses, leading to significant cost savings.

Navigating the Renewal Process

Understanding the renewal process and avoiding potential disruptions can be daunting, and there
are several common mistakes that can lead to inefficiencies or increased costs. To avoid these, it is
important to structure your renewal by following the steps below.

Key Action Points:

• Plan Ahead: Start the renewal process early to avoid last-minute issues and
  ensure a smooth transition. Use tools to streamline the process and Start the
  renewal process 30 to 60 days before your contract expiration date.
• Address Challenges Proactively: Identify and address potential challenges early
  to ensure a seamless renewal process. Assess your current NCE subscriptions to
  determine if they still meet your needs and identify unused or underutilized
• Model Your Options: Evaluate different renewal strategies and their long-term
  impacts on your organisation. This helps you choose the most cost-effective and
  beneficial approach.

How the Espria Quantum 365 V3 Tool Makes This Easy

The Espria Quantum 365 V3 tool simplifies the entire process of renewing your CSP and
maximising benefits. Given the complexity and financial impact of the changes introduced by
NCE, having a robust tool like Quantum 365 V3 is essential.

Here’s how it helps:

• Visibility and Insights: Quantum 365 V3 provides comprehensive visibility into the application
  usage, helping you identify inefficiencies and optimize your cloud environment. By
  understanding usage patterns, you can make informed decisions about license quantities
  and types.
• Cost Management: The tool helps you manage costs by identifying and managing leaver
  accounts, driving down contract spend, and improving procurement strategies. This ensures
  that you are only paying for what you need and can re-harvest licenses from inactive
  accounts.
• Training and Support: Quantum 365 V3 includes in-platform tutorials and learning resources
  to support employee autonomy and productivity, reducing help desk calls. This ensures that
  employees are proficient with new tools and technologies.
• Security and Compliance: The tool provides visibility into Microsoft security features, helping
  you monitor statistics on files shared outside the company and ensuring robust security and
  compliance. This mitigates risks and ensures adherence to industry standards.
• Streamlined Renewal Process: Quantum 365 V3’s role-based persona menus, easy-
  tonavigate dashboards, favourites feature, and smart tagging help streamline the renewal
  process, ensuring a smooth transition and proactive management.

Proven Savings

Organisations using Quantum 365 V3 have reported significant cost savings during renewals. By
eliminating wasted licenses, optimising investments, and improving budgeting and spend
forecasting, Quantum 365 V3 has helped organisations save up to 30% on their licensing costs.

By leveraging the Espria Quantum 365 V3 tool, you can make the renewal process easier, more
efficient, and more beneficial for your organisation.