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Ready or not - Microsoft CSP legacy subscriptions are migrating to NCE

07/12/2023

Microsoft CSP legacy subscriptions are migrating to NCE – whether you're ready or not

Prepare ahead of 2024 and lead your customers with confidence

In the evolving marketplace of cloud solutions, staying ahead isn't just about embracing new technologies — it's about understanding and navigating the transitions that come with them. As Microsoft prepares to complete a pivotal shift with the end of cloud solution provider (CSP) legacy subscriptions in 2024, a clear path forward is essential for your continued growth and success.

The background

New Commerce Experience (NCE) is Microsoft's cloud commerce platform that replaces the legacy CSP program. It was created to offer a simplified pricing and licensing model, a more flexible subscription management system, and improved self-service capabilities. It enabled customers to access similar pricing and terms across any transaction model.

The changes began in 2019 with NCE for Microsoft Azure and then rolled out for seat-based products like Microsoft 365, Dynamics 365, Windows 365 and Power Platform. The program included fixed one- to three-year commitment terms and a monthly option. NCE became generally available in January 2022, and starting in January 2024, the last CSP subscriptions will be migrated to the new NCE platform.

The change isn't just a technical migration; it represents a strategic opportunity for all of us in the Arrow partner community. With the NCE set to become the standard, now is the time to ensure that you're competitively positioned to leverage new efficiencies, pricing structures and subscription models that NCE offers.

The timeline

  • Microsoft will begin auto-migrating all CSP commercial subscriptions in the legacy system to new commerce in January 2024.
  • All legacy subscriptions that Microsoft migrates to new commerce are set to an annual term with the same billing plans and seat counts those customers had in legacy.
  • This Microsoft-led migration occurs on the date of subscription renewal, starting with all subscriptions set to renew in January 2024 and continuing throughout the 2024 calendar year.
  • Partners will have seven days after migration is complete to change the subscription term and quantity or cancel the subscription if necessary.

Your next steps

As the clock ticks toward the 2024 deadline for the CSP legacy transition, you and your customers must be well-prepared and proactive. The actions you take today will define your business's agility and resilience tomorrow. Here's how to navigate this transition effectively:

Step 1: Initiate manual migration

  1. Migrate your subscriptions manually before the renewal date.
  2. Use the ArrowSphere migration tool to migrate your subscriptions before the renewal date.
  3. Important reminders
    • If you have a monthly term on CSP legacy and want to keep it, you must do a manual migration.
    • If Microsoft auto-migrates your subscriptions, they will be set to an annual term and locked into a full-year commitment without the possibility of decreasing seats or canceling your subscription.
    • If your customers no longer want to renew legacy CSP, make the change before your renewal date!

Step 2: Migrate in ArrowSphere

  • Engage with the ArrowSphere migration tool to manage your subscription transitions. The platform provides an integrated set of business rules, tools for staged migration and valuable insights that can guide your business decisions.
  • After migrating, use ArrowSphere to review the subscriptions and make any necessary adjustments to ensure alignment with your customers' changing needs.

If you remain static, you'll fall behind

Embracing this transition and cloud commerce means embracing change. NCE was built to focus on transparency, simplified billing and customer-centric subscription management. Since its rollout, NCE has transformed how cloud products like Microsoft 365, Dynamics 365 and Azure are transacted, introducing more predictable pricing and a streamlined customer experience.

This is a strategic transition that's crucial for your business. It goes beyond the surface of compliance. Migrating to NCE equips you with a competitive edge — access to consistent pricing models, the ability to offer customers flexible term-based commitments and the enhanced capacity to forecast revenue with greater accuracy.

Be ready to lead with confidence. Taking charge of your migration journey empowers you to lead the transition confidently, with the best interests of your business and your customers in mind.

Leverage Arrow's expertise. Remember, Arrow's team of specialists is here to support you every step of the way. From strategic planning to execution, we are your partners in this transition and beyond.

If you have any questions, Arrow’s dedicated Microsoft experts are here to guide you through the changes and answer any questions you may have about NCE

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