Customer & Partner Success

Build Sustainable Revenue with Microsoft’s New Commerce Experience and AppDirect

By Ideas @ AppDirect / October 22, 2021

For many years, Microsoft’s Cloud Solution Provider (CSP) program has set the standard for making Microsoft cloud, and more recently on-premise software easier to buy and manage for both partners and customers. Recently, Microsoft announced major changes to this program that are designed to further simplify both the purchase and sales processes for customers and partners.

Accelerating partners’ business growth

These changes are introduced under the “New Commerce Experience” (NCE), which was first introduced in 2019 for Microsoft Azure. Overall, NCE aims to help partners accelerate business growth, simplify licensing, and address how customers prefer to purchase and manage cloud solutions. Since its introduction, Microsoft has expanded the program, moving software subscriptions, third-party software, and Azure Reservation products into the New Commerce Experience. As a next step, Microsoft is launching the Technical Preview of the New Commerce Experience for license-based offers in mid-October of 2021.

Building your Microsoft Cloud business with AppDirect

AppDirect has been working to adopt these new changes since early 2021 to ensure a seamless transition for partners and customers on the AppDirect platform. We're committed to providing the most robust cloud marketplace for Microsoft CSPs and enabling partners to position their businesses for strategic and sustained growth. Microsoft CSPs can take full advantage of all available features, benefits, and opportunities of Microsoft’s New Commerce Experience immediately.

Microsoft CSPs benefit from reduced licensing complexity and features that will improve revenue predictability. With AppDirect, CSPs are also empowered to build and deliver more managed services, expand their customer base, and help guide customers through their journey to the cloud.

If you’re a Microsoft CSP partner, you can expect:

• Discounted pricing and promotions in exchange for customer commitments
• Improved trial capabilities
• Premium pricing for customers who want to maintain flexibility each month
• Consistent and robust cancellation and suspension capabilities
• An enhanced pricing and billing experience

What your customers can expect:

• Discounted pricing in exchange for committing to a minimum license quantity annually
• Premium pricing to maintain monthly commitment flexibility
• New multi-year billing terms
• Cancellations to only be allowed 72 hours after purchase or renewal, and a pro-rated refund within that 72 hours
• More flexibility in mid-term subscription upgrades and auto-renewals

When can you expect changes?

• October 2021 - All partners worldwide will become eligible to transact license-based offers in the New Commerce Experience
• January 2022 - Microsoft will launch promotional pricing to support partners and customers transitioning to the New Commerce Experience
• March 2022 - All renewals and new business will occur in New Commerce Experience only
• October 2022 - Incentives will only be available to partners in the New Commerce Experience
• February 2023 - All remaining business must be moved to the New Commerce Experience

Our approach

Leverage the AppDirect platform, tools and expertise to drive efficiencies, build broader and more sustainable revenue, and take advantage of new incentives and rebates selling Microsoft cloud products.

As the leading subscription commerce platform, AppDirect powers trusted technology partners like Deutsche Telekom, Telstra, and Vodafone. Whether you are a partner ready to start migrating your customer base to the New Commerce Experience, or needing assistance in scaling your CSP business, AppDirect is ready to help.

If you want to learn more about your options expanding your Microsoft Cloud business, or need help navigating these new changes, please contact us. We’re here to help.