From 1st April 2023, pricing on all Microsoft Cloud services will increase by 9% in the UK.Â
Microsoft ’s announcement is part of a move to align the pricing of Microsoft Cloud products globally so that customers will have consistent pricing reflecting the exchange rate of the local currency to the US dollar (USD).
Microsoft is doing this because global currencies have been impacted differently by the macroeconomic environment, which has in turn, affected their exchange rate compared to the US dollar. For a sustained period, Microsoft had deferred pricing adjustments based on such currency fluctuations, but as of 1st April 2023, the organisation is realigning Cloud pricing globally.Â
These adjustments will not affect existing orders under licensing agreements for products that are subject to price protection.
However, prices for new product additions under such licensing agreements and purchases under new contracts will be as defined by the pricelist at the time of order.Â
- Expiring or new subscriptions purchased on or after 1st April 2023, will be subject to the revised price list, including the price adjustment.
- Moving forward, Microsoft will establish a centralised process in which currency fluctuations and potential pricing adjustments relative to the USD will be assessed and evaluated twice a year.
What this Microsoft price increase means for you
Microsoft’s 2023 pricing adjustment means your cloud costs increase.
Microsoft has said that organisations that purchase cloud services, such as Microsoft 365 will continue to find their cloud offerings highly competitive.Â
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This price increase will affect ALL Microsoft products/services, so not to be confused with the NCE and Microsoft 365 price increases last year.Â
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We appreciate this will impact you, as it does us.Â
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If you are currently on month-to-month Microsoft 365 pricing or have an annual commitment due for renewal before 1st April 2023, you can avoid the price increase for up to a year by renewing/ committing to a 12-month term before 1st April 2023.Â
The Key Takeaways
- If you have an existing subscription for seat-based cloud services offers in New Commerce CSP, your pricing is protected during the term of the subscription at the original billing price.Â
- If you purchase additional CSP seats to add to an existing subscription (where the subscription is active before 1st April 2023) they will be at the original billing price and not subject to the latest price increase.Â
- If your subscription is due to expire, or you purchase a new subscription on or after 1st April 2023, it will be subject to the revised price list with the new price adjustment.Â
As described above, any purchases made prior to 1st April 2023 will receive price protection until the end of the commitment or agreement term.
Should you want more information or to check your eligibility for this price protection then please contact us on [email protected] Â
CloudyIT ClientsÂ
We are working hard to ensure our clients are protected from the price increase and to provide the best advice.
We will be contacting all clients to discuss the impact of this new pricing adjustment.
Not a CloudyIT Client?Â
Please use the contact form below to register your details and confirm if you are eligible for the price protection before 1st April 2023.
Click here to get in touch via our form or email us for more information.
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