Microsoft Curtails Partner Risk With NCE Mid-Term Transfers

Microsoft will allow partners, under certain conditions, to transfer cloud subscriptions to other partners, relieving the financial risk incurred on defective accounts. It’s a small step in addressing a much larger industry problem.

Microsoft is looking to reduce the risk incurred by cloud solution provider (CSP) partners selling its cloud-based services through its New Commerce Experience (NCE) program by enabling them to transfer active licenses and accounts to other partners without incurring a penalty or remaining responsible for the contract payments.

The change comes nearly two years after NCE launched to transition customers from legacy licenses to annual cloud-based subscriptions. Under the original terms, CSP partners that sold annual or long-term contracts were responsible for the recurring payments even if the customer discontinued the service or transferred to another partner of record.