Microsoft are Increasing their prices

From 1st April 2023, Microsoft will be applying a 9% price increase which will affect ALL Microsoft 365 products and services.

This price increase applies across the entire Microsoft 365 cloud product portfolio and affects products such as Exchange Online Cloud email, Microsoft 365 Business Basic, Microsoft 365 Apps for Business, Microsoft 365 Business Standard and Microsoft 365 Business Premium.

Why is Microsoft 365 increasing in price?

For many years, Microsoft has maintained separate pricing strategies for different currencies. Unfortunately, the current economic climate has led to significant fluctuations in the value of different global currencies, which has pulled some of them away from the value of the U.S. dollar. As a result, Microsoft has decided to change local pricing across the world to bring it back in line with the value of the dollar.

As of 1st April 2023, global prices for Microsoft’s cloud products will change to reflect the value of these currencies. In the majority of cases, prices will rise, but there are some countries with robust currencies where prices are due to fall. The primary currencies are the Euro, Pound Sterling, Swedish Krona, Norwegian Krone and Danish Krone.

The price change is consistent across all cloud product offerings and all packages. This means that prices will change by the same amount for all customers, including commercial, public sector, educational facilities and government clients. Microsoft is expected to review its pricing biannually from this point on, reflecting any fluctuations in the value of the dollar.

As of 1st April 2023, prices for all Microsoft cloud services are expected to rise in the following currencies. So as inconvenient as it is, the UK pricing has actually increased by the lowest amount.

British Pound (GBP): up 9%

Danish Krone (DKK): up 11%

Norwegian Krone (NOK): up 11%

Swedish Krona (SEK): up 11%

How can we avoid the price increase?

There is the ability to secure 12 months of the current pricing if you sign a contract before 31 March 2023.

We signed up to NCE last year, does this price increase apply?

Microsoft price changes will only apply once the current licence term has expired. If a new licence agreement is put into place before 1 April 2023 the price increase would not come into effect for 12 months.

What specific licensing does the price increase affect?

The 9% UK price increase applies to all Microsoft product SKUs. This is not to be confused with the NCE price changes in February 2022.

For further advice please contact your Jennings Computer Services Account Manager or call us on 01723 374196