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How To Do Effortless Transition to Microsoft's New Commerce Experience (NCE)

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Microsoft is extending eligibility for public sector subscriptions to migrate smoothly to the new commerce experience (NCE), and we're here to guide you through the process. Keep reading to discover how you can ensure a seamless transition for your public sector clients, moving from their existing Cloud Service Provider (CSP) subscriptions to NCE as their trusted Managed Service Provider (MSP).

NCE marks the latest advancement in the CSP program, specifically for seat-based offerings in Microsoft's modern work, including Microsoft 365, Office 365, Dynamics 365, and Power Platform. Here are the key features differentiating NCE from legacy CSP subscriptions:

  1. NCE introduces enforced annual and monthly commitment periods, with monthly subscriptions incurring a 20% price premium.

  2. Partners/customers have a seven-day window after activating subscriptions to modify the subscription term and/or quantity or cancel it. Following this grace period, the subscription is locked in for the agreed commitment term.

  3. NCE allows a single customer tenant to qualify for both education and nonprofit licenses.

In July 2023, Microsoft unveiled NCE for public sector customers, encompassing nonprofits, government entities, and educational institutions. These customers require Microsoft's qualification and approval to access sector-specific licenses.

NCE, initially introduced to commercial sector customers in 2020, is soon becoming available to public sector clients, streamlining subscription management under one platform.

While NCE for public sector was initially slated for November 2023, Microsoft has taken partner and customer feedback into account, extending the transition period. The introduction of NCE precedes the retirement of legacy CSP subscriptions. Failure to take action before the legacy subscription renewal date will prompt Microsoft to initiate the migration of legacy CSP subscriptions to NCE with annual commitments, applicable to both commercial and public sector customers.


  • January 1, 2024 – NCE public sector SKUs release Wave 1 (including education and nonprofit offers).

  • February 1, 2024 – Wave 2 release, featuring Government Community Cloud (GCC) offers.

  • March 1, 2024 – Wave 3 release.

  • April 1, 2024 – Wave 4 release.

  • May 1, 2024 – Legacy offers for public sector no longer purchasable if NCE equivalents exist.

  • July 1, 2024 – Microsoft-led migration begins for legacy public sector offers.

  • December 31, 2024 – End of legacy incentives.

The shift to NCE represents a significant change in Microsoft public sector licensing, impacting how you interact with your clients and manage their licenses.

Here are key considerations when communicating these changes:

  1. Budget Cycles: Public sector organizations often rely on pre-allocated annual funding. Educate clients on upcoming changes to licensing structure and payments, enabling them to allocate costs effectively.

  2. Fluctuating User Numbers: Understand the dynamic nature of software subscription users in the public sector. Structure licenses based on the commitment period, allocating annual subscriptions to a core user base and keeping the rest flexible with monthly subscriptions.

  3. Security: Cybersecurity is paramount for public sector organizations. The transition to NCE offers an opportunity to review and enhance security postures, especially for organizations using outdated products. Upgrading to modern SKUs ensures enhanced security and consolidation of security costs.

In summary, the move to NCE is a transformative step for public sector clients, and with our support, you can navigate this transition seamlessly. Stay informed, plan ahead, and make the most of this opportunity to enhance your clients' experience with Microsoft services. Do you want more information about this? We at Gridheart are here to help you with this process, Contact our support here.


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