About Xeneth

Microsoft NCE Update

Microsoft update screen

Just recently Microsoft have announced the ability to transfer New Commerce Experience – seat based subscriptions between Partners (Azure subscriptions have been transferrable for some time already).

You can find more information in the comments below, though we thought we would share with you what this means for you and your customers at a glance.

Why would I use this?
Originally if a partner were to offboard a customer with an active legacy CSP subscription – the partner could just cancel the subscription and billing would stop (and a prorated refund would be initiated), the customer could then speak to their new Microsoft Licensing Partner and start a new subscription.

Then came along the New Commerce Experience for seat based subscriptions. Under the original rules, once a purchase has been made– the billing terms, including the billing relationship between the partner and customer couldn’t be changed.

So if for whatever reason the partner or customer wished to transfer the subscription to another partner – they would need to wait until the subscription ended.

Now with Subscription Transfer ability, Indirect Providers and Direct Partners can transfer subscriptions between them (If you’re an Indirect Reseller – work with your Indirect Provider).

What does this mean?

  • This only applies to the billing relationship. It’s essentially lifting and shifting a subscription from Partner A to Partner B.
  • The price and terms originally agreed to remain the same, (cost price, term, billing frequency).
    As you can imagine Microsoft don’t have any influence on the margins applied to the sale of a subscription, the customer should be made aware that any special concessions negotiated with the originating Partner won’t transfer across.
  • If the originating Partner does not agree to releasing the subscription, it doesn’t go ahead (they have 30 days).
  • If they do agree a credit for any upfront payments is generated to the Partner, and a prorated charge for the remainder of the term is passed onto the new Partner.

For more information check out the learn.microsoft.com article in the comments.

Share Article:

Related Posts