From Pay-as-you-go to subscription:
consistent predictable revenue
reliable continual service to customer even if they don’t use it
Current model = LEGACY model
fixation of prices for 1 year for both billing types (monthly & annual)
option to decrease number of licenses
agreement without commitments
billing period as of the 23rd day of calendar month
New model = NEW COMMERCE EXPERIENCE model
Available from 10.1.2022
All customers will have different dates when their program ends, the prices of licenses will be based on dollar exchange rate (the prices can change based on current exchange rate)
Increase of prices:
June 2022 is the last month to renew into legacy or last month to change current monthly subscription into an annual subscription.
Recommended months for purchase of licenses are JANUARY and FEBRUARY.
Billing period is a day of the beginning of calendar month.
Transition to lower version is not possible.
There are 3 types of commitments available:
ANNUAL COMMITMENT
commitment for 12 months and fixation of prices for 12 months
not able to decrease number of licenses
2 types of billing (monthly & all at once in advance)
without a refund
MONTHLY COMMITMENT
commitment for 1 month
option to decrease number of licenses
without fixation of prices!
without a refund
possibility of cancellation within 72 hours
prices are 20% higher compared to the annual commitment
MULTIANNUAL COMMITMENT
will be available only for some groups
same conditions as in the annual commitment
3 types of billing (monthly & annual & all at once in advance - recommended)
fixation of prices for 36 months during renewal of contract
Subscription renewal model
fix all services before price increase in number of 1 in portal Stream ONE Marketplace
increase the number of licenses at a fixed price during termination of original subscription
customer then gets an unified anniversary
New platform in TechData = StreamONE ION Enterprise
option to allow end users to purchase and manage cloud services
individual setting of prices for particular customers
How to purchase licenses in a new model in TechData
In order to find new NCE products, type a keyword "commerce" in a search box.
Select New Commerce Experience and select category (small business, enterprise, trial).
Select product type (base subscription, add-on subscription = addition to base subscription).
Search product name and platform shows you the available ones. Don't forget to look at commitment terms (annual/monthly) or billing frequence (annual/monthly)!
Cancellation period is 72 hours.
A compatible base subscription is required for an add-on to function properly.
CANCELLATION
there is 72 hours protection period during which we can cancel purchased services (no refunds after that)
subscription immediately enters ‘Disabled’ status: users can’t access services but admins can access data for 90 days
it cannot be reversed
cancellation fee = the remaining amount for the entire subscription period
PAUSE (in 1Click)
partner continues to be billed
subscription enters ‘Disabled’ status: users can’t access services and files & admins can access data until the end of subscription term
it can be made ‘Active’ again
it’s only the option to put pressure on the end users but will have no effect on the payments partners have to take!
If customer goes bankrupt, the partner is obliged to pay for the rest of the period even if the user won’t use the license!
AUTO-RENEW (in 1Click)
ON: subscription renews at the end of the term and 72-hour cancellation period restarts
OFF: subscription doesn’t renew at the end of the term and subscription enters ‘Disabled’ status
Recommendations:
validate customer contracts
license control process
every customer will have to convert to NCE so plan conversion of all legacy CSP subscriptions per 1 customer into new commerce CSP on the same day = same anniversary dates per all subscriptions will make it easier to manage renewals
How to configure and maintain the licenses
administering BC tenant (important part is "As partner")
Administration of Business Central Online - Business Central | Microsoft Docscreation of new subscriptions (done in 1Click portal, but this is MS alternative)
Create customer subscriptions in Partner Center - Partner Center | Microsoft Docsmanaging users and licenses
Manage users for customer accounts - Partner Center | Microsoft Docs