Microsoft make changes to CSP license terms

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Microsoft’s upcoming “New Commerce Experience” (NCE) is bringing some changes to the CSP world, which will mean things are different for partners and customers.

Longer term contracts

3 year terms will be available for Microsoft 365 & Dynamics 365 on CSP – a change from the current max. of 12 months. This will enable orgs to protect against price increases over a 36 month period and makes a lot of sense, given Microsoft’s aim to move many Level A Enterprise Agreement (EA) customers to CSP from 2022 onward.

Flexibility costs money

Microsoft say that there will be “new monthly-term offers with a price premium for customers who need term and seat-count flexibility“. One very attractive feature of CSP has always been the ability to reduce/cancel license quantities at a moment’s notice without penalty…the above statement suggests that customers who still want that will have to pay for the privilege.

Customers will be able to combine short/long term licenses, which is great for industries where seasonal fluctuations bring a short term increase to the user base. This is something that was addressed in the MPSA several years ago, before it lost its mantle as the “next big thing” to CSP.

There are various other changes to help partners offer a better service to customers including:

  • Streamlined trial conversion
  • Add-ons available separately
  • Enhanced management capabilities

All changes hit General Availability on October 1, 2021 although some won’t be available in Brazil until February 2022.

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