Microsoft Licensing Changes – January 2023

What is Microsoft NCE?

NCE is the new Microsoft licensing platform that will be replacing the existing legacy CSP platform. All new Microsoft license purchases are already purchased under the new NCE platform. There are two subscription models that make up Microsoft’s NCE platform.

What is changing?

On 1st January 2023, Microsoft will be increasing the cost of legacy CSP license subscriptions by up to 20%. AfterDark Technology recommends that clients move to an NCE 1-year commitment subscription in January 2023 to maintain similar pricing to their current subscriptions.

  • Clients will NOT lose access to existing Microsoft legacy CSP licenses.
  • Clients can still increase/decrease existing legacy CSP license quantities.
  • Not-for-profit and educational licensing will not be affected by this change.
  • Existing NCE license subscriptions will not be affected by the price change.

What are the two subscription models?

1) Month-to-month – This model is a non-commit “per license type” subscription that is billed monthly. This is very similar to the legacy CSP subscriptions you may already be familiar with.

2) Commitment – This model is a “per license type” subscription with a 1-year commitment that is also billed monthly. Microsoft offer a discount for this licenses purchased under this model.

What are the key differences between the two subscription models?


  • No fixed term, subscriptions can be cancelled at the end of each month.
  • License quantity can be increased and decreased to suit the needs of your business.
  • Licenses are full price (approx. 20% increase on legacy CSP pricing).


  • 1-year fixed-term commitment that cannot be cancelled until the end of the term.
  • License quantity can only be increased, commitment license quantity cannot decrease.
  • Additional licenses cannot be cancelled until the end of the original subscription term.
  • Licenses have approx. 20% discount in comparison to an NCE month-to-month model.

What do I need to do?

Contact and let us know if you would like to switch to an NCE month-to-month or commitment model and our team will help you facilitate this change.

If you have any questions about the NCE licensing change or want to know more about how this change might affect your business, contact your AfterDark account manager for more information.

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