As of 1st April 2023 Microsoft are increasing the price of their services by 9%.
This affects all Microsoft Cloud products and services, including MS 365, Azure, and Dynamics 365, and is a result of Microsoft’s local currency pricing policy update, which was announced in November 2022.
Why are Microsoft doing this?
This is a move by Microsoft to link their pricing model to global currency fluctuations. The UK rate has been calculated, initially, as the US$ price + 9%. This rate will be reviewed twice-annually to ensure pricing consistency across the world and to increase transparency for customers. Microsoft’s statement explains: “periodic adjustments to local currency pricing are necessary to ensure that customers in different regions are paying consistent prices for similar cloud services.”
In some regions, Microsoft products have been available at 40% lower prices than the global US$ level. The changes will realign all prices closer to US$ prices. This may result in prices going up as well as down, as pricing will now depend on local currency fluctuations. The new pricing model is widely used in the industry and brings Microsoft more into line with their competitors.
Despite the increase, Microsoft Cloud products remain very competitively priced and it’s important to remember the flexibility and scalability offered by utilising cloud services. Resource use can be increased and decreased as necessary, giving the end-user much more control over their IT costs.
If you’ve any questions about the price increase please don’t hesitate to get in touch.