Demystifying Microsoft's Coterminosity for MSPs in the New Commerce Experience

2 min read
28 July 2023

Before the advent of Microsoft's easy coterminosity, handling subscription renewals was potentially chaotic. Continue reading to gain a deeper understanding of coterminosity.

Given that each customer may have multiple renewal dates based on the timing of their legacy product upgrades or new orders, managing renewals was set to become an overwhelming challenge for Managed Service Providers (MSPs). The addition of various auxiliary services with divergent renewal dates further complicated the process. However, with the introduction of coterminosity in Microsoft's New Commerce Experience (NCE), subscription management has undergone a substantial simplification.

From Chaos to Clarity

Coterminosity under Microsoft's NCE aligns the end dates of all seat-based  subscriptions. Whether licenses are added mid-subscription or at the initial purchase, their end dates align with the subscription, allowing all services to renew simultaneously. This shift drastically reduces the complexity of renewal management for MSPs.

The Power of New Commerce Experience

With the introduction of NCE in March 2022, Microsoft has standardized the 12-month subscription term for Microsoft 365 and Office 365 products. The new system enforces this commitment while still allowing for monthly payments. Notably, the ability to create coterminosity applies only to NCE  seat-based subscriptions. This means that any legacy subscriptions or those purchased through other means, such as Web Direct or an Enterprise Agreement, can't be made coterminous under this system.

Efficiency in Coterminosity Alignment

MSPs can activate coterminosity at the time of purchase or at renewal. For example, suppose a company has a mix of monthly, annual, and multi-year subscriptions with different end dates; when they purchase a new subscription, they can choose for the new subscription to end on the same date as one of the existing subscriptions. At renewal, the existing subscriptions can be scheduled to be made coterminous with one of the other existing subscriptions. There is also the option of aligning the end date with the last day of the calendar month.

Navigating Legacy Subscriptions

If an MSP aims to bring a legacy subscription into the NCE, they must transact a new subscription in the NCE and make it coterminous with the required subscription. Following this, they can then suspend the legacy subscription , and add-ons, thus ensuring a smooth transition to the NCE.

Improved Financial Forecasting and Customer Experience

Beyond streamlining subscription management, Microsoft's coterminosity under NCE aids in accurate financial forecasting and enhances customer experience. Customers are no longer burdened with multiple renewal dates, making renewing their services more manageable.

Opportunities for Cross-Selling and Upselling

With all services renewing simultaneously, MSPs can more efficiently cross-sell or upsell other services during the renewal period, leading to potential increases in revenue.

In summary, Microsoft's coterminosity under the New Commerce Experience has revolutionized subscription management for MSPs, providing a simplified, efficient approach to managing multiple subscriptions. While MSPs must navigate the new rules and processes involved in transitioning from legacy systems, the benefits of coterminosity in terms of customer experience, financial planning, and operational efficiency make it a powerful tool in the modern digital landscape.

Speak to us to see how Cloudmore can help manage Microsoft CSP Subscriptions and billing, including coterminosity.



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