Microsoft have 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, which was first announced in November of 2022.
The price increase will affect all Microsoft cloud services, including popular offerings such as Azure, Dynamics 365, and Microsoft 365.
While this news may be unwelcome to many businesses and organisations, 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 mitigate the impact of the price increase, Microsoft has made a number of resources available to customers. These include an FAQ document and templates for communicating the changes to end users. The company has also stated that they are “committed to helping customers navigate the transition and minimize any disruption to their business.”
While the price increase may be a source of concern for some, it is important to remember that the cloud has many benefits that can far 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. Additionally, the cloud provides a number of cost-saving opportunities, such as the ability to reduce IT infrastructure expenses and the need for in-house IT staff.
In conclusion, while the news of a 9% price increase for Microsoft’s cloud services in the UK may be disappointing, it is important to remember that the cloud has the potential to offer significant benefits to businesses of all sizes. 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.
You can read the announcement here: https://news.microsoft.com/europe/2023/01/05/consistent-global-pricing-for-the-microsoft-cloud/