> For the complete documentation index, see [llms.txt](https://docs.platform.softwareone.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.platform.softwareone.com/extensions/microsoft-cloud-solution-provider/products-and-programs/microsoft-nce.md).

# New Commerce Experience (NCE)

New Commerce Experience (NCE) is Microsoft's licensing and purchasing model for cloud subscriptions sold through the Cloud Solution Provider (CSP) program.

NCE introduces standardized subscription terms, billing options, and lifecycle management capabilities for Microsoft cloud services. It's designed to provide greater flexibility, transparency, and predictability when purchasing and managing subscriptions.

With NCE, you can:

* Choose from different subscription terms and billing options.
* Manage subscription renewals through auto-renewal settings.
* Increase or reduce license quantities based on requirements.
* Benefit from more predictable pricing and commitment-based purchasing models.

### Subscription cancellation and license reduction rules

Microsoft NCE subscriptions are subject to specific rules for cancellations, license reductions, and renewals.

#### Key terms

The following are some of the key terms related to Microsoft NCE subscriptions in the Marketplace:

* **License reduction (downsize)** – Reducing the number of licenses in a subscription while keeping at least one license active.
* **License increase** – Adding licenses to an existing subscription. License increases have their own cancellation and reduction window.
* **Cancellation (termination)** – Canceling a subscription and ending the service. 
* **Auto-renewal** – Controls whether a subscription automatically renews at the end of its commitment term. If auto-renewal is disabled, the subscription expires at the end of the current term and doesn't renew.
* **Commitment term** – The period for which a subscription is purchased, such as a monthly or annual term.

#### Cancellation and license reduction window

Microsoft NCE subscriptions can be cancelled or downsized within 7 calendar days of purchase, renewal, or a license increase. For instructions, see [Terminate Microsoft 365 subscription](/extensions/microsoft-cloud-solution-provider/additional-resources/microsoft-365/terminate-microsoft-subscription.md) and [Reduce Microsoft 365 licenses](/extensions/microsoft-cloud-solution-provider/additional-resources/microsoft-365/reduce-microsoft-365-licenses.md).

A prorated refund may apply under the applicable Microsoft cancellation policy.

Additional licenses added during an active subscription term have their own 7-day reduction window.

#### After the cancellation window

After the 7-day cancellation window expires, you can no longer cancel the subscription or reduce the number of licenses. This applies to both new and renewal orders. 

The current license quantity remains committed for the rest of the subscription term. Any reduction must be scheduled for the next renewal or end of term, where supported.

If you no longer need the subscription, you can disable automatic renewal and allow it to expire at the end of the current commitment term. For instructions, see [Disable automatic renewal](/extensions/microsoft-cloud-solution-provider/additional-resources/microsoft-365/how-to-disable-the-automatic-renewal-of-an-nce-subscription.md).

For the latest policy information, see the Microsoft [New Commerce Experience cancellation policy](https://learn.microsoft.com/en-us/partner-center/customers/new-commerce-cancellation-policy).

{% hint style="info" %}
The cancellation and license reduction rules described on this page apply to Microsoft NCE subscriptions. Perpetual software follows different return policies. For information about perpetual software purchases in the Marketplace, see [About perpetual software orders](/extensions/microsoft-cloud-solution-provider/products-and-programs/perpetual-software/about-perpetual-software-orders.md).
{% endhint %}


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