Act now to avoid Microsoft price rises

Act now to avoid Microsoft price rises

Microsoft has just announced that it will be increasing the prices it charges to UK businesses for its suite of products by up to 22% to account for the slump in the value of the pound since the Brexit vote. The price rises, which will take effect from January 2017, amount to 13% for on-premises enterprise software but the full 22% for most of its cloud-hosted subscription services, such as the popular Microsoft Office 365.

Microsoft says that for business customers these changes will not affect existing orders under annuity volume licensing agreements for products that are subject to price protection. For example, customers with Enterprise Agreements have price protection on previously ordered enterprise software and cloud services, and will not experience a price change during the term of their agreement.

Similarly, business customers with cloud commitment subscriptions such as Office 365 also receive price protection during their subscription term, which is normally twelve months from the start of paid subscription. In plain English this means that the price rises will only apply to new purchases, not ongoing contracts, so businesses can delay the impact of the price rises if they act now.

Microsoft has said that it expects resellers to increase the prices they charge to match the vendor uplift, however Transputec is looking to protect its customers, not exploit them. We will do this by working with customers to understand their future Microsoft software needs and current Microsoft contract position. We will then be able to advise customers how to best manage the price rises.

Contact our team now so we can get working on your behalf to control costs before the price rises come into effect.

Shalen Sehgal

Head of Services

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