What do the changes to the Microsoft CSP licensing model mean for your business?

Microsoft is tightening the reins on subscription terms with higher prices and new terms in the licensing model. If you purchase Microsoft licenses through the Cloud Solution Provider (CSP) licensing model or are planning related IT projects for your business, some changes to the CSP licensing model will also apply to you starting in March 2022.

What to do?  

• Switch to NCE as soon as possible. This way, you can secure a promo price advantage on M365 licenses for the next 12 months.
• Get a better overview of your Microsoft licenses with the Self-Service Portal from Arvato Systems.

The old CSP licensing model only considered the term of a subscription. Thus, it was possible to book subscriptions or adjust the number of users at any time. With the new NCE license model, those conditions will be restricted and extended by new guidelines. This affects all "user-related" solutions such as Microsoft 365, Dynamics 365, or Power Platform.

License quantities and license upgrades

While you could reduce license quantities at any time in the old CSP license model, the NCE license model is more restrictive: It only allows booking adjustments within 72 hours. After this period, you can reduce licenses again only at the so-called renewal date (=renewal at the end of the term).

On the other hand, license quantities can be increased at any time. These are billed pro-rata based on the remaining term until the end of the subscription.

A license upgrade, for example, from M365 Business Standard to M365 Business Premium, can also be initiated at any time. There are two different types of upgrades:

• Complete upgrade: All licenses are part of the upgrade. The end date of the term remains unchanged.

• Partial upgrade: Only the desired licenses are part of the upgrade. You can upgrade into an existing or a new subscription. The licenses will then run in parallel until the new term end date.

Downgrade in NCE

The NCE license model does not support downgrading. This is only possible during the first 72 hours after booking and after the subscription expires.

Promo pricing in NCE is available now.

Organizations that upgrade to NCE in time will get ahead of the announced price increase on 01.03.2022 and benefit from a better price for another 12 months. ❗ So secure the promo price advantage for M365 licenses now❗

If so, Arvato Systems can help you manage your Microsoft licenses easily and concisely. For this purpose, we have just launched our new Self-Service Portal.

Arvato Systems Selfservice Portal 

• Carry out license orders yourself. Keep track of your current license environment. With the appropriate reporting options, our portal also helps you to keep an eye on your costs and licenses. 
• You get insight into current invoices as well as your license development over a definable period of time. With our Azure performance data report, for example, you always have the "real-time" consumption in front of your eyes and can plan accordingly.

If you would like to use our self-service portal or have questions about the "New Commerce Experience", please contact Arvato Systems' partner management at csp-support@Bertelsmann.de.