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Microsoft UK has announced a price increase of 22 percent for cloud services for UK business customers, to take effect from January 2017.
The new price structure will not apply to consumer software or consumer cloud services, but at the same time the cost for on-premise enterprise software will go up by 13 percent. Microsoft reports that the increases are the result of needing to ‘harmonise prices’ within the EU/EFTA region and are in line with changes made earlier in the year, in April, to prices in Norwegian krone and Swiss franc.
Existing business customers with orders under annuity volume licensing agreements for products with price protection will not be affected. And business cloud customers with subscriptions for Office 365, for example, are also protected from the price rise for the duration of their twelve-month subscription.
Michael Frisby, Cobweb's Managing Director, says “Microsoft has a history of adjusting to significant changes in market conditions and recent Foreign Exchange (FX) rate movements, with the pound at a 31-year low vs. the US dollar, this price rise is not unexpected."
“A 50-employee business moving to Office 365 with Business Premium, will pay over £1,000 more in 2017 compared to purchasing before the end of December 2016. So, now is the time for any business interested in Office 365, EM+S, Power BI or indeed any of the Microsoft cloud services delivered on an annual subscription to sign up and beat the price rise.”
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