Understanding Microsoft’s New Commerce Experience and What It Means for Your Microsoft 365 Business Plan

In early 2022, Microsoft introduced the New Commerce Experience (NCE) to simplify how businesses purchase and manage Microsoft 365 licenses. As of 2025, this model is now the standard. With a new Microsoft 365 price increase scheduled for April 1, 2025, it is essential for organizations to evaluate how their current licensing aligns with Microsoft’s modern purchasing framework.

If your business has not yet transitioned to NCE or if you are unsure how your licenses are structured, now is the time to review your Microsoft 365 Business Plan and ensure you are prepared for what is ahead.

Louisville Geek helps businesses understand these changes, manage licensing strategy, and minimize cost risks. Below is a breakdown of the three NCE commitment options available and what you should consider before selecting one.

Comparing Your Microsoft 365 Business Plan Options Under the New Commerce Experience

1. Month-to-Month Commitment

This option is best suited for companies that rely on seasonal staff, contractors, or have a workforce with fluctuating headcounts.

Advantages

• Offers flexibility to add or remove users without a long-term agreement
• Ideal for businesses with unpredictable staffing levels or temporary workers

Disadvantages

• Carries a 20 percent price increase compared to annual pricing
• Refunds are only available within a 72-hour window from the start of the billing period
• Can result in inconsistent monthly costs that are harder to forecast

2. Annual Commitment

This option is best suited for businesses with a stable headcount and long-term planning needs.

Advantages

• Saves 20 percent compared to the month-to-month plan
• Locks in pricing for 12 months to support budget consistency
• Simplifies license management with a single renewal date
• Allows for mid-term increases in license count, which are prorated through the term

Disadvantages

• Seat counts are fixed for the duration of the year and cannot be reduced
• Any unused licenses must still be paid for through the contract term

3. Three-Year Commitment

This option is best suited for organizations with long-term growth plans and low employee turnover.

Advantages

• Locks in pricing for three years, which protects against future price increases
• Provides long-term budgeting stability
• Ideal for companies with predictable license needs over several years

Disadvantages

• No ability to reduce license count during the three-year term
• Limits flexibility if workforce needs change or if the organization restructures

Why Your Microsoft 365 Business Plan Needs Strategic Oversight

Choosing the right Microsoft 365 Business Plan goes beyond picking a license tier. Under the NCE model, businesses need to consider workforce predictability, cost control, compliance needs, and the ability to scale. Misaligned decisions can result in unnecessary expenses or operational inefficiencies.

As a Microsoft Solutions Partner for Modern Work, Louisville Geek works alongside businesses to:

• Conduct a full review of existing Microsoft 365 licensing
• Assist with NCE transitions, including annual and three-year commitments
• Right-size licenses across departments for role-specific needs
• Provide continuous licensing support to reduce administrative burden and improve productivity

Take the Next Step with Confidence

If your current Microsoft 365 plan is due for renewal or if you are unsure how the New Commerce Experience affects your business, reach out to our team for a consultation. Our goal is to help you align your Microsoft 365 investment with your operational goals.

You can also explore our in-depth resource on support services for Microsoft 365 users by visiting:
👉 The Ultimate Guide to Microsoft 365 Support in Louisville