You have probably noticed that Q1 is when renewal conversations ramp up. That’s no coincidence. Microsoft’s New Commerce Experience (NCE) model, introduced in 2022, shifted how and when customers renew Microsoft 365 contracts. For many small and medium-sized businesses (SMBs), those contracts are now synced to Q1.
This alignment creates a predictable window for renewal activity—but it’s about more than just contract updates. Microsoft uses Q1 as a strategic launchpad for pricing changes, product updates, and new features, making it the perfect time for you to deepen customer relationships and drive additional value.
Why Q1 drives renewals
The NCE model redefined the cadence of Microsoft 365 contracts, locking many SMBs into agreements aligned with its launch. Fast-forward to today, and Q1 has become the busiest renewal season for partners.
Looking ahead, the renewal surge is only growing. Microsoft predicts that in 2025, 45% of CSP seat renewals will happen between January and March. However, renewals aren’t the only consideration. Microsoft strategically uses Q1 to launch updates and initiatives that create opportunities for you to bring added value to your customers.
Key changes coming in 2025 include:
- Pricing Adjustments: Increases for annual subscriptions billed monthly and regional changes (e.g., UK and Brazil).
- Lifecycle Milestones: Exchange Server 2019 reaches its Extended End-of-Support phase in October, while unlicensed OneDrive accounts will be archived after 90 days starting in January.
- New Features: Enhanced Microsoft 365 capabilities, like new SharePoint agents.
These updates align perfectly with renewal conversations, allowing you to educate your customers and showcase the benefits of adopting new tools and strategies.
How MSPs can succeed
To make the most of Q1, engaging customers early and proactively is essential. Here’s how you can stay ahead:
- Engage Early: Start renewal conversations in December or early January.
- Explain Clearly: Be transparent about pricing or licensing changes.
- Showcase Value: Highlight features like Microsoft Copilot as part of a forward-looking IT strategy.
- Strengthen Trust: Address customer concerns before competitors do.
Failing to act can leave customers feeling undervalued and vulnerable to competing offers.
Crush Q1 with these renewal resources
Navigating Q1 doesn’t have to feel like a balancing act. To help you succeed during renewal season, we have developed Crush the Renewal Rush Assets. These tools are designed to make conversations easier and more effective.
With these assets, you’ll gain:
- Talking points for pricing and product updates.
- Outreach templates for smooth customer communication.
- Strategies to position Microsoft Copilot and other value-adds.
With these tools in your arsenal, you can transform renewal season into an opportunity for growth. Download Crush the Renewal Rush Assets today and make Q1 your strongest quarter yet!
