Transition to NCE model in CSP program

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

  1. In order to find new NCE products, type a keyword "commerce" in a search box.

  2. Select New Commerce Experience and select category (small business, enterprise, trial).

  3. Select product type (base subscription, add-on subscription = addition to base subscription).

  4. 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)!

  5. 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

  1. administering BC tenant (important part is "As partner")
    Administration of Business Central Online - Business Central | Microsoft Docs

  2. creation of new subscriptions (done in 1Click portal, but this is MS alternative)
    Create customer subscriptions in Partner Center - Partner Center | Microsoft Docs

  3. managing users and licenses
    Manage users for customer accounts - Partner Center | Microsoft Docs