Microsoft recently announced that they will be increasing the price of their cloud services by 9% in the United Kingdom from the 1st of April, 2023. This change comes as a result of an update to Microsoft’s local currency pricing policy, announced in November of 2022.
The price increase will affect all Microsoft cloud services, including commonly used applications such as Dynamics 365, Microsoft 365 and Azure.
Microsoft has stated that the change is necessary in order to maintain consistent global pricing for their cloud services. In a statement, the company explained that “periodic adjustments to local currency pricing are necessary to ensure that customers in different regions are paying consistent prices for similar cloud services.”
In an effort to minimise the impact of the price increase, Microsoft has made a number of resources available to customers which includes an FAQ document and templates for communicating the changes to end users. Microsoft also stated that they are “committed to helping customers navigate the transition and minimise any disruption to their business.”
The increase in price can be a concern for some, however, it is important to remember that the cloud has many benefits that can outweigh the costs. For example, Microsoft’s cloud services offer a high level of scalability, allowing businesses to quickly and easily increase or decrease their use of resources as needed. The cloud also provides a number of cost-saving opportunities, such as the ability to reduce the need for in-house IT staff and IT expenses. By carefully evaluating their cloud strategy and staying informed about pricing changes, organisations can ensure that they are making the most of the opportunities that the cloud has to offer.
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.
More information on Microsoft Licensing can be found by watching this video by our Cloud Expert, Ian Loman.
If you have any concerns or worries regarding the price increase, or simply want to find out how you can Do More With Less using your Microsoft Licenses, complete our quick audit
You can read the announcement here: https://news.microsoft.com/europe/2023/01/05/consistent-global-pricing-for-the-microsoft-cloud/