Everything you need to know about the Microsoft price increases
Recently Microsoft announced that from the 1st April 2023 they would be increasing the price of their cloud products by 9%.
Here we give you a quick overview of what this means for you and how we can be here to advise if you need us.
Why are Microsoft increasing their prices?
Currencies globally have been impacted differently by the macroeconomic environment, which also affected their exchange rate compared to the US dollar (USD). For a sustained period, Microsoft had deferred pricing adjustments based on such currency fluctuations, but as of 1st April 2023. Microsoft are realigning Cloud pricing globally.
This means Microsoft are updating local currency cloud pricing in EUR, GBP, SEK, NOK and DKK based on foreign currency fluctuations compared to the USD to have greater price harmonisation across the globe. This will ensure that customers worldwide have more closely aligned pricing to the USD rate.
Who will be impacted by the price increases?
Microsoft have taken a unified approach to the price adjustment which will be equal for all categories of commercial and public sector customers, including government, education/academic and non-profit organisations.
How much will prices increase by?
Starting 1st April 2023, the following price adjustments will be effective for Microsoft Cloud services:
- British Pound (GBP) prices will adjust +9%
- Danish Krone (DKK), Euro (EUR) and Norwegian Krone (NOK), prices will adjust +11%
- Swedish Krona (SEK) prices will adjust +15%
What will be impacted?
The following subscriptions will be impacted by the change:
- Pricing for existing subscriptions for seat-based cloud services are protected during the term of the subscription at the original billing price.
- Additional CSP seats added to an existing subscription established prior to 1st April 2023 will be included at the original billing price.
- Expiring or new subscriptions purchased on or after 1st April 2023 will be impacted by the price increase including the price adjustment.
- Popular products impacted include, but are not limited to, Microsoft 365 E5 and E3, Microsoft 365 Business Plans, Office 365 plans, Dynamics licensing (Sales, Customer Service, Finance, Supply Chain Management, Business Central etc.)
How we can help
We know that changes like these can raise questions or cause uncertainty, which is why we have our own Microsoft licensing expert available for you to discuss short and long-term strategies to mitigate the impact of this price increase to your business.
As a Tier 1 Microsoft Direct Cloud Solution Provider we work directly with Microsoft and therefore have access to the best CSP commercial terms for our clients.
If you want to talk to our expert about any questions you may have around this change please book some time in his diary below.