Introduction to M365 D365 Power Platform in new commerce experience CC

Introduction to M365 D365 Power Platform in new commerce experience CC

New feature/change Current experience New commerce experience Impact and benefits
Multi-year billing plans​ Partners selling multi-year subscriptions must pay monthly or upfront.​ Partners can also be billed annually for multi-year subscriptions.​ Additional option to accommodate customers’ payment preferences.​
Price list integration via API​ Not available​ Partner APIs can read monthly pricing lists instead of partner processing lists manually.​ Easier automation of offer pricing within partners’ sales and billing systems.​
Reconciliation file upgrades​ Partners receive separate recon files once each month for license-and usage-based subscriptions.​ All subscriptions are consolidated into one customizable recon file. Estimates of charges accrued during the month are provided and updated hourly.​ Increased accounting efficiency and options for partners in customer billing.​
Subscription ownership enforcement Customers could buy from different partners to aggregate instances of the same SMB offer and buy multiple free trials.​ Customer SKU limits will be enforced across multiple partner tenants, preventing, for example, a customer from purchasing multiple lower-cost SMB SKUs from different partners.​ Prevents customers from “gaming” the system and ensures that partners will be able to maximize the revenue from each customer.​
Suspend/resume subscriptions​ To pause subscription, partner must suspend it, and then re-order it if subscription terminates after end of term. Partner billing is paused during suspension. Partner can suspend and then resume a subscription at any time without cancellation or termination; partner billing continues during suspension. Helps partner with dunning; subscription can be paused until customer remits overdue payment.​
Promotions pricing transparency No automatic notification of customers when promotional reduced pricing is included in a CSP transaction. Government and state-owned entity customers will receive an email notification from Microsoft with details on the promotional discount and why that pricing was offered in the sale. Provides price and discount transparency to these customers and supports anti-corruption regulations worldwide. Prepares customers to understand this alongside partner pricing.

 

Add-ons sold separately from base offers Add-ons could be purchased only in conjunction with purchases of the add-ons’ base SKUs and were not displayed in the CSP catalog or shopping-cart UI. Add-ons are listed in the catalog and shopping-cart UI along with base SKUs and can be purchased separately and independently. More flexibility and ease of purchasing for partners and customers, along with upsell opportunities for partners.

 

Ability to schedule changes at subscription renewal Not available​ Partner can schedule different seat counts, SKU conversions, term-length renewal changes, renewals to different billing option.​ Allows partner to manage subscriptions in advance instead of performing manual changes at renewal. Improves operational efficiency.​
Mid-term subscription upgrades Partner can upgrade only SMB subscription SKUs mid-term. Partner can also upgrade Enterprise SKUs mid-term. Gives partner more options to meet needs of larger customers.
Subscription term options for Windows 365 Subscriptions available for annual term only. Subscriptions available for monthly term only. Option to try Windows 365 in new commerce with no long-term commitment and reduce seats if needed.
Automatic seat assignment with full upgrade Only available with SMB SKUs.​ Seats can also be assigned automatically at upgrade with Enterprise-level SKUs.​ Easier and more efficient subscription management for larger customers.​
Auto-renewal toggle option​ Subscriptions are auto-renewed by default at end of annual term.​ Partner can toggle auto-renewal and submit renewal manually.​ Easier to manage renewals and plan ahead for subscriptions that will be terminating.​
Cancellation policy enforcement​ Partner could suspend the annual subscriptions at any time without penalty or early termination fee. However, partner did not have the option to cancel the subscription immediately.​ Partner can cancel subscription with prorated billing/refund within first 72 hours after initial order or term renewal. After 72 hours, no cancellation available and no prorated billing/refund. Partner will be billed for the remainder of the annual term if monthly billing was chosen. Encourages customer commitment to the full annual term of the subscription purchased and reduces churn; helps partner more effectively retain and forecast revenue; ensures ROI for provision of support and services.
Monthly-term subscriptions Only annual-term subscriptions for license-based offers. Subscriptions available on monthly terms at a premium price. Aligned with standard practices in MS Web Direct and across multiple industries. Option for customers hesitant to commit to annual subscription; allows them to pay more for ability to cancel anytime with no further costs. Incentivizes customer commitment. Enables partner to monetize flexibility.

Key dates

October 2021 

  • GA of seat-based offers in NCE
  • Launch of incentives for all CSP partners
  • Launch of NCE promotions for Direct Bill partners and Indirect Providers

March 2021 

  • 36 month Subscriptions availabe for Microsoft
  • New purchases and renewables only available in NCE
  • End of NCE promotions for Direct Bill Partners and Indirect Providers

October 2022 

  • Incentives only available for NCE transactions

Subsciption Ownership limits

  • Existing license-based subscriptions enforced ownership limits, or the number of subscriptions a partner could purchase for a customer.
  • New commerce implements a seat constraint across the provisioned SKUs.
  • New commerce small business subscriptions with less than a 300 maximum will apply the maximum at the provisioned SKU level. A partner could have multiple small business subscriptions for a customer as long as the aggregate of the seat counts stays under the declared maximum.
  • The maximum for small business applies regardless of where the customer’s provisioned SKU came
    from, i.e.: multiple-partner or channel.

Pause, cancellation, and auto-renew

Pause

  • Partner continues to be billed
  • Subscription immediately enters “Disabled” status:
    – Users can’t access services or files
    – Admins can access data until the end of the Subscription term
  • Subscription can be made “Active” again

Cancellation

  • Partner receives a pro-rated refund in the first 72 hours
  • NO refunds after 72 hours
  • Subscription immediately enters “Disabled” status:
    – Users can’t access services or files
    – Admins can access data for 90 days
  • Cancellation cannot be reversed

Auto-renew

On:

  • Subscription renews at the end of the term
  • 72-hour cancellation period restarts

Off:

  • Subscription does not renew at the end of the term Subscription enters “Disabled” status

If you have any questions, check the FAQ file.

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