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Microsoft Implements Global Price Increase for Cloud Products

Microsoft recently made an important announcement that will impact its customers and partners worldwide. Starting in April 2023, the tech giant will be implementing a price increase for its Microsoft Cloud products on a global scale. This decision comes as part of Microsoft’s efforts to align pricing consistency with the exchange rate of local currencies to the US dollar (USD).

Enhancing Pricing Consistency and Alignment with Local Currencies

In a continuously evolving global economy, different currencies experience varying impacts due to macroeconomic factors. These can affect their exchange rates relative to the USD. Microsoft had previously deferred pricing adjustments based on these currency fluctuations, but as of April 1, 2023, the company will be taking a proactive step to realign cloud pricing globally.

To achieve greater price harmonisation for their global cloud products, Microsoft will update the local currency cloud pricing in several vital currencies. These include EUR, GBP, SEK, NOK, and DKK. These adjustments will be based on foreign currency fluctuations compared to the USD. This ensures that customers worldwide benefit from more closely aligned pricing than the USD rate.

  • British Pound (GBP) prices will increase by 9%.
  • Danish Krone (DKK), Euro (EUR), and Norwegian Krone (NOK) prices will increase by 11%.
  • Swedish Krona (SEK) prices will increase by 15%.

Ensuring Transparent and Predictable Pricing for Customers Worldwide

Microsoft has established a centralised process for assessing currency fluctuations and potential pricing adjustments relative to the USD to provide better transparency and predictability for customers. This process will be conducted twice yearly, allowing for routine and predictable pricing updates. By adopting this simplified structure, Microsoft aims to create a more consistent pricing model that aligns with industry standards.

The company acknowledges that some customers might have concerns about how these changes will impact them. Therefore, Microsoft has taken steps to minimize disruption. These adjustments will not affect existing orders under licensing agreements that have price protection. However, it’s important to note that new product additions and purchases under new contracts will be subject to the revised price list at the time of order.

Furthermore, Microsoft wants to assure its customers that this pricing adjustment is part of its ongoing commitment to providing competitive pricing and value. The company will prioritize local pricing stability for on-premises software while ensuring that cloud prices are aligned globally.

In conclusion, Microsoft’s decision to implement a global price increase for its Cloud products reflects its commitment to maintaining consistency and alignment with local currencies. By establishing a transparent and predictable pricing model, Microsoft aims to provide its customers with more excellent value and competitive pricing, regardless of location.

If you have any concerns or questions regarding the upcoming price increases announced by Microsoft, we encourage you to reach out to Eitex, a trusted partner in Microsoft solutions. The team at Eitex is well-versed in Microsoft’s products and pricing structures and can provide expert guidance and support to help address any queries or apprehensions you may have. Don’t hesitate to contact Eitex to discuss your specific requirements and find solutions that meet your needs while navigating the price adjustments.

Adele Spencer

Marketing and Business Development Manager for Eitex

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