Microsoft announces price increases for its software and cloud-based services following pound slump.
Microsoft has recently announced that it will increase its UK prices by up to 22% to microsoft-price-increase account the depreciation in the value of the pound following the Brexit vote. The new prices, which will come into effect in January 2017, have been adjusted in order to “realign close to euro levels”.
Cost for on-premise enterprise software, including the Office suite, will increase by 13%, while prices for majority of Microsoft enterprise products, such as Azure, will go up by 22%.
On its TechnetUK blog, Microsoft stated, “From January, British pound prices for on-premises enterprise software will increase by 13% to realign close to euro levels. Most enterprise cloud prices in British pounds will increase by 22% to realign close to euro levels. Even after this adjustment, customers across the region buying in British pound will still find our cloud offerings highly competitive. For indirect sales where Microsoft products are sold through resellers, final prices and currency of sale will continue to be determined by them.”
“For business customers, these changes will not affect existing orders under annuity volume licensing agreements for products that are subject to price protection. For example, customers with Enterprise Agreements have price protection on previously ordered enterprise software and cloud services, and will not experience a price change during the term of their agreement. Similarly, business customers with cloud commitment subscriptions such as Office 365 also receive price protection during their subscription term, which is normally twelve months from the start of paid subscription.”
Microsoft also pointed out that price rise will only apply to new purchases, not ongoing contracts, delaying the blow for many businesses and organisations which currently use Microsoft technology.