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October 2, 2026Understanding M365 NCE Licensing and Renewals (2023)
Microsoft’s policies and terms change periodically. The intent of this page is to make it easier to understand the current Microsoft 365 NCE program.
Microsoft launched the New Commerce Experience (NCE) in 2022 and introduced changes that impact how organizations and end-users purchase Microsoft 365 licenses. Microsoft created the NCE to reduce complexity and offer savings for long-term commitments and flexibility for monthly commitments.
Microsoft 365 NCE
M365 Yearly Monthly – Option 1
- Terms: 12-month commitment with monthly billing
- Benefit: Cost savings are the primary benefit. The Yearly Monthly option works best for long-term employees.
- No refunds after 7 days of purchase.
- Clients should review the current number of licenses annually, prior to the renewal anniversary, to ensure that the license numbers are up to date. This is to prevent potentially being locked into extra licensing for another year without being able to cancel unused annual licenses.
- Clients can add and reassign licenses to other users when someone leaves the organization. However, clients cannot cancel or reduce the number of licenses during the term of the Microsoft contract.
- If a client cancels the subscription during the term of the Microsoft contract, the client will be liable to pay the remaining term plus 20% of the of the entire term.
- Cancellations & License Reductions: Clients may cancel new licenses or reduce the number of new licenses within the first 7 days. Following the 7-day window, these licenses shall be added to the client’s subscription for the current term and no reduction will be permissible until the end of the term.
- NOTE: Microsoft reserves the right to update the prices during the Yearly Monthly annual commitment.
M365 Monthly – Option 2
- Terms: Monthly commitment with monthly billing
- Benefit: No annual commitment is the primary benefit. The Monthly option provides flexibility for organizations that need to make monthly changes to their Microsoft 365 or licenses plans and seat count, e.g., new hires, short-term workers, etc.
- No refunds after 24 hours of purchase.
- Microsoft can raise the monthly rates at any time during the current term.
- All monthly contracts will be billed at Microsoft’s monthly market rate (annual price + 20%).
- Cancellations & License Reductions: Clients may cancel new licenses or reduce the number of new licenses within the first 24 hours. Following the 24-hour window, these licenses shall be added to the client’s subscription for the current monthly term and no reduction will be permissible until the end of the term.
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About Hixardt Technologies
Copyright © 2023 Hixardt Technologies, Inc. All rights reserved. Hixardt and the Hixardt logo are among the trademarks or registered trademarks owned by or licensed to Hixardt Technologies, Inc. The Microsoft 365 logo is the registered trademark of Microsoft Corporation. All other marks are the property of their respective owners.
Microsoft’s policies and terms change periodically. The intent of this resource is to make it easier to understand the Microsoft 365 New Commerce Experience (NCE) program.
