Nearly two years ago, Microsoft updated its licensing models for commercial subscribers for products such as Office 365 and Microsoft 365, and now these changes are coming to nonprofit and governmental organizations. 

Commercial customers now license products using Microsoft’s New Customer Experience (NCE) model, and Microsoft is currently moving nonprofit organizations to NCE at their renewal dates. NCE is different in that it offers two core ways to pay for licensing: 

One-Year Commitment (Pay Monthly)

  • Subscribers pay monthly but commit to a license for an entire year.
  • Subscribers lack the ability to reduce the quantity of licenses mid-term.
  • The yearly cost is lower than a month-to-month license used over a year-long period.
  • Additional licenses can be purchased at any time.

True Monthly

  • Subscribers pay month-to-month with only a monthly commitment.
  • The monthly license allows flexibility to remove licenses each month if needed (i.e., when an employee or volunteer leaves).
  • Additional licenses can be purchased at any time.

Why is this important for nonprofits?

Nonprofit organizations are accustomed to purchasing a one-year subscription, but with True Monthly added to the mix, nonprofits now have purchasing flexibility if they have seasonal fluctuations in software users. Because both the One-Year and True Monthly models can be used together for one organization, nonprofit organizations have the potential to save costs long-term. 

What should nonprofits do next?

At renewal time, nonprofits should review their current user licenses to make sure they are licensed appropriately. The renewal date is the only time to make changes that can reduce an organization’s licensing numbers. 

Not sure what the best approach is for your organization? ATB Technologies has a proven track record of helping nonprofit organizations select, manage and support software products that help their organizations grow and thrive. Contact ATB Technologies at today for a free consultation and see how we can help your nonprofit determine the best way forward.

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