Microsoft Pricing Changes
2016.12.02 – Update
We have now received confirmation from Microsoft that services including Office365, SPLA licensing, Enterprise and Hosted Exchange will be affected by the January 2017 price increases.
The price increases will be between 12% and 22%, unfortunately, Microsoft have not published a reviewed pricelist in accordance with these changes and so we cannot be any clearer about the exact amount that you will be paying from January 2017.
For our existing customers: You will have just been invoiced for your January 2017 services, including your Microsoft services, at the current list price. Once we have more information and exact pricing for 2017 you will be issued a one-off invoice to settle the difference and ensure that your pricing is as clear and up-to-date as possible.
We apologise for any inconvenience that this may cause and we will ensure that billing disruption is kept to a minimum.
ITC have been informed by Microsoft about changes being made to the British pound pricing that comes into effect on January 1st, 2017.
Microsoft is announcing British pound price changes to harmonise its prices for software and cloud services within the EU/EFTA region, effective January 1st, 2017. Microsoft periodically assesses the impact of its local pricing of products and services to ensure there is reasonable alignment across the region and this change is an outcome of this assessment. For example, in April 2016 Microsoft made similar harmonisation adjustments to its pricing in the Norwegian krone and Swiss franc.
Starting January 1, 2017, British pound prices for on-premises enterprise software will increase by 13% to realign close to euro levels. Most enterprise cloud prices in British pound will increase by 22% to realign close to euro levels. Even after this adjustment, customers across the region buying in British pound will still find Microsoft cloud offerings highly competitive.
What does this mean?
It is difficult to say what the exact or long-term impact of this announcement is. We do know that there will be a price increase but it is unclear how much of a hike there will be. As soon as we have more information we will provide an update. As always ITC will endeavour to limit the impact that this change has upon our customers.
Why is it happening?
At this moment in time, the prevailing opinion is that Brexit is causing these supplier pricing changes with many companies including Apple and HP adjusting their prices in the second half of this year. However, it is also not unusual for large companies to review their pricing every couple of years.
For more information about Microsoft’s products and services call us now 023 8024 9820