Microsoft has reversed a previous decision regarding its monthly renewal policy for Microsoft Cloud services. The company was planning to block automatic renewals of month cloud services accounts for users with plans operated by a Cloud Solutions Provider (CSP) partner. Microsoft says it is reversing this change and will not be blocking those renewals after all.
In its original guidance, the company says legacy CSP subscriptions to Microsoft Cloud services would no longer get automatic updates starting from July 11 2022. With that date fast approaching, customers have been concerned about Microsoft's plans. They accused the company of simply trying to force users on its own New Commerce Experience subscription model.
An announcement on June 27 saw Microsoft roll back its previous decision. According to the company, automatic updates for CSP subs are “extended indefinitely”.
“Previously, we communicated that legacy commercial seat-based subscriptions would no longer be auto-renewed on the legacy platform starting July 11. Though our goal is still for partners to migrate legacy subscriptions to new commerce before end of term, we have made a business decision to continue supporting the legacy auto-renewal functionality beyond July 11.”
Change of Plans
Did Microsoft make this decision because customers were not taking the bait to move to New Commerce Experience plans? It seems that way, although the company insists it “has seen an acceleration of partners migrating legacy Cloud Solution Provider (CSP) subscriptions to the new commerce platform in recent weeks”.
If you're unfamiliar with New Commerce Experience models, they allow the customer to subscribe to Microsoft Cloud services and pay annually. There is no monthly plan, while may be ideal for some users but is problematic for others. New Commerce Experience subscriptions are available for Microsoft 365, Dynamic 365, and the Power Platform.
It is also worth noting this change of plan does not affect a previous Microsoft block stopping new CSP subscriptions from paying monthly automatically. That block came into effect on March 10, 2022, and remains in place. Microsoft's decision this week is strictly for older CSP subscribers.
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