Will you be affected by Microsoft's price increases

Posted 10 November 2016 12:00 AM by Ricky Wallace, Marketing Manager @ ClearPeople

As of 1st January 2017, Microsoft will be increasing the price of enterprise software and cloud services in the British pound. We’ve put together a quick Q&A to help you make the right decisions for your organisation and guide you through the change as easily as possible. 

Why is the price increase happening?

Microsoft periodically assess the impact of local pricing on their products and services, and following this assessment they have realigned their prices across the EU/EFTA region.

In April 2016, Microsoft made adjustments to pricing in Norwegian krone and Swiss franc and these changes are very similar in order to harmonise their offerings.  

How much will the price increase by?

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.  

That seems a bit steep…

Well, even after this adjustment, customers across the region buying in British pound should still find Microsoft’s 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. 

How will this affect my current agreements?

Fear not, these changes will not affect existing orders under annuity volume licensing agreements for products that are subject to price protection. For example, if you have an Enterprise Agreement, you’ll have price protection on previously ordered enterprise software and cloud services, and will not experience a price change during the term of this 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.

How can ClearPeople help?

If you’re wanting to upgrade to an E5 license and take advantage of its capabilities, we can help you asses your roadmap to determine if now is the right time to help your teams accomplish more, faster and easier before the price increase comes into effect.

Now is the time to take advantage of the cloud. Sign up for our Ready. Set. Cloud programme to help you define your personal cloud strategy.

ClearPeople aren’t a Licensing Solution Provider, but as Microsoft Gold Partners and experts in the digital workspace, we will be happy to discuss your options for any new purchases you wish to make and can ensure you’re in touch with a top-quality Licence Solution Provider. Speak to one of our experienced consultants today for more information.


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