NCE broadly covers the changes in Microsoft licensing terms and pricing. It doesn’t directly impact consumers but affects business licensing in general, excluding Non-Profit, Education and Government licensing. The NCE changes how you and your IT partners procure certain Microsoft licenses. Not all Microsoft licenses are impacted, but many Microsoft 365 SKUs are subject to the new pricing model. Some of the most used SKUs that will be impacted as of March 1st are: Office 365 Enterprise E1, E3, E5 Microsoft 365 Enterprise E3 Microsoft 365 Business Basic and Premium The goal of the Microsoft NCE program is to provide clients with more options when working with Microsoft partners. This flexibility ultimately aims to potentially reduce costs while helping organizations with digital transformation. NCE focuses on seat-based offerings, allowing simple per user costs that can scale up or down on a monthly or annual basis depending on the model you choose. While Microsoft has offered seat-based licensing and annual terms for a while, with NCE they’re fully embracing the model. ADNET has shared ideas on managing subscription-based expenses in several blogs before – and for most organizations, this model has few downsides.