At Lease Group, we’ve been preparing for the full rollout of Microsoft’s New Commerce Experience (NCE) and the impact it brings to both MSPs and their customers. With the changes now fully in effect, we’ve enhanced our Partner Platform to help overcome the key budgeting, risk and cost challenges introduced by the new model.
Microsoft NCE represents a significant shift in how software licences are purchased and managed. While it brings greater structure and long-term pricing benefits, it also introduces new financial considerations that MSPs and businesses must carefully navigate.
Understanding the NCE Challenge
One of the most talked-about changes under NCE is the introduction of a 20 per cent premium on monthly rolling subscriptions. While this option provides flexibility, it comes at a noticeably higher cost, which many businesses are understandably reluctant to absorb.
To avoid this premium, Microsoft is incentivising customers to commit to longer-term agreements, typically 12 or 36 months. These contracts allow businesses to lock in pricing and avoid mid-term increases, offering greater cost certainty over time.
However, this creates a new challenge.
Long-term commitments can place pressure on cash flow, particularly for businesses that are not in a position to pay for licences upfront. At the same time, MSPs face increased financial exposure when offering monthly billing on these longer-term agreements.
While Microsoft does allow customers to pay monthly on annual and multi-year contracts, the responsibility for payment ultimately sits with the MSP. If the customer defaults at any point during the agreement, Microsoft will still expect the remaining balance to be paid in full.
For many MSPs, this introduces a level of risk that simply wasn’t there before.
How We Solve It with Leasing
At Lease Group, we’ve developed a solution that removes these barriers entirely.
By enabling MSPs to offer Microsoft licences through a lease agreement, we allow customers to spread the cost of their software over a fixed term, without incurring the 20 per cent premium associated with monthly subscriptions.
This means customers benefit from predictable, affordable monthly payments, while still securing the cost advantages of a long-term Microsoft agreement.
At the same time, we eliminate the financial risk for the MSP.
When a deal is completed through our platform, the MSP receives the full licence value upfront. From that point on, we take responsibility for collecting payments from the customer. Should the customer default or go into liquidation, there is no comeback on the MSP.
This creates a far more secure and scalable model for partners operating under NCE.
Supporting MSP Growth
Beyond risk mitigation and affordability, leasing also enhances the overall sales process.
NCE has made purchasing decisions more complex, with stricter terms around cancellations, seat reductions and contract changes. As a result, customers are taking longer to commit, particularly when faced with higher monthly costs or long-term obligations.
By introducing leasing at the point of sale, MSPs can simplify the conversation. Instead of focusing on pricing structures and contract limitations, they can present a single, fixed monthly cost that aligns with the customer’s budget.
This not only improves conversion rates but also helps partners win business in competitive markets where cost and flexibility are key decision factors.
A Complete Solution Through Our Partner Portal
We’ve built our Partner Portal to make this process as seamless as possible.
Our platform allows MSPs to generate quotes instantly, receive automated credit decisions and manage the entire transaction in one place. This means you can move from proposal to completion quickly, without unnecessary admin or delays.
Importantly, our solution covers both hardware and software, including Microsoft licences. While many businesses are still unaware that software can be financed in this way, it’s something we’ve been supporting for years.
With NCE now fully implemented, we expect leasing to become an increasingly common approach for managing software costs.
Looking Ahead
Microsoft NCE is here to stay, and while it introduces new challenges, it also creates opportunities for MSPs who are prepared to adapt.
By combining Microsoft’s long-term licensing structure with a flexible leasing solution, you can offer your customers the best of both worlds: cost certainty, affordability and simplicity.
At Lease Group, we’re here to help you navigate this transition with confidence. If you’re an MSP or IT supplier looking to reduce risk, improve cash flow and close more business under NCE, speak to us today about our self-service leasing solution.
You can be up and running, and quoting customers, within the hour.