On 5 January 2023, Microsoft announced that it is taking several steps to align the pricing of their Microsoft Cloud products globally. This means that customers will have consistent pricing for Microsoft cloud, reflecting the exchange rate of the local currency to the US dollar (USD).
Why are these changes being made?
Currencies globally have been impacted differently by the macroeconomic environment, which also affected their exchange rate compared to the US dollar. As of 1 April 2023, Microsoft is aligning Cloud pricing globally in order to implement a more defined and transparent cadence to provide Commercial Cloud pricing consistency across regions.
What are the pricing changes?
For the UK this means that starting 1 April 2023, the following adjustment will be effective for Microsoft Cloud services:
- British pound (GBP) prices will adjust +9%
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 price list at the time of order.
How will the consistent pricing for Microsoft cloud affect your business?
New Commerce CSP Online Services
- Pricing for existing subscriptions for seat-based cloud services offers in New Commerce CSP are protected during the term of the subscription at the original billing price
- Additional CSP seats added to an existing subscription (a subscription that is active before 1 April 2023) will be at the original billing price before any increase
- Expiring or new subscriptions purchased on or after 1 April 2023, will be subject to the revised price list, including the price adjustment
New Commerce CSP Azure
- Azure in CSP will not be impacted as this is already priced in USD and converted into local currency each month
Enterprise Agreements
- Existing EA customers have price protection on previously ordered products and will be covered throughout the term of their agreement
- Any new product additions will be priced using the current price list at the time of order
- Renewals and new agreement pricing will be determined by the price list at the time of order
Daisy Recommendations
Any purchases that are made prior to 1 April 2023 will receive price protection until the end of the agreement term. Daisy recommends working with your Account Manager to plan accordingly and lock in current pricing prior to the price increase. If you are an Azure customer, we recommend moving to CSP in order to avoid any future price increases.