Hove based technology finance provider, Lease Group, has readied it’s Partner Platform to overcome the budgeting, risk and cost implications proposed under the Microsoft New Commerce Experience (NCE).
As previously reported, Microsoft NCE comes into full effect this October, giving MSPs and businesses new payment and budgeting considerations when upgrading popular software lines.
For example, businesses who wish to pay for Microsoft Office and 365 licenses on a monthly rolling subscription will be charged a 20% premium for the facility, they will also be subject to mid-term price-increases, as confirmed on the Microsoft website.
Under Microsoft NCE, Businesses are incentivised to commit to long term license agreements. However, this raises concerns around cash-flow for buyers and the repayment risk for MSPs.
Customers who commit to 12 and 36 month license agreements under Microsoft NCE can avoid the 20% premium and mid-term prices increase proposed with monthly rolling subscription licenses.
But along with long-term commitment, businesses are unlikely to want to outlay cash for licenses upfront.
“The good news is, through Microsoft NCE businesses will have the option to pay monthly for their 12 and 36 month license commitments, and this overcomes the 20% premium as well as any unwelcomed price increases”, comments Simon Fabb, Lease Group Marketing Director.
“However, this option leaves the MSP wide open should the customer default on their monthly payments during the term. Microsoft will be looking to the MSP for the remainder of the balance.”
Lease Group has responded to the changes by enabling MSPs to sell annual Microsoft licenses over 12 and 36 month lease contracts, allowing customers to benefit from fixed monthly payments, without the 20% premium.
What’s more, the solution covers the MSP for any liability owed to Microsoft should the customer fail to keep up their monthly payments.
“By leasing licenses to the customer, the MSP receives full license revenue upfront and we take on the risk of customer repayments,” adds Simon.
“If the customer goes into liquidation, there’s no comeback on the MSP.”
Lease Group’s Partner Portal provides MSPs with a one-stop Microsoft leasing solution, allowing instant quote generation and automated credit decisions.
“It’s not always known that software can be leased,” says Simon. “Amortising the annual license cost and de-risking the MSP is something we’ve been doing for years, but I expect it to become more common-place now due to the changes under NCE.”
Microsoft NCE changes come into full effect this October.
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