Microsoft Licensing for Business Products Print

The New Commerce Experience (NCE) is Microsoft's licensing model for Microsoft 365 and other seat-based licenses. It introduces structured rules for license management, billing, and commitments.

• Monthly Commitment (P1M) – Pay monthly with full flexibility but costs 20% more than annual plans.
• Annual Upfront (P1YA) – Pay for 12 months upfront at a lower rate.
• Annual Monthly (P1YM) – Commit for 12 months but pay monthly with price adjustments every 6 months.
• Annual Flexi (P1Y) – Lower rate but subject to more frequent exchange rate adjustments.

Adding licenses: ✅ You can add licenses anytime with no restrictions.

Removing licenses: ❌ You can only reduce or remove licenses within 7 days of purchasing or renewing.

Understanding License Removal

When managing Microsoft 365 licenses, it's important to understand **when** and **how** you can **reduce or remove licenses** under the **New Commerce Experience (NCE).**

• Month-to-Month Subscription (NCE COM MTH): Allows reductions every month within the **7-day cancellation window** at the start of each billing cycle.
• Annual Commitment Billed Monthly (NCE COM ANN - P1YM): You can only reduce licenses **once per year**, during the **7-day renewal window**.
• Annual Commitment Paid Upfront (P1YA): No reductions or cancellations are allowed during the year.

Key Takeaway: Missing the **7-day window** means you **must keep paying** until the next renewal.

If you do not renew, Microsoft will suspend your licenses and eventually remove access to your Microsoft services.

If you're unsure about your license commitments, billing, or renewal options, contact our team for assistance.