One of our members, Mark Kindred from Netcom Managed IT Services, wrote this blog about Microsoft increasing software prices by 22% after Brexit:

Microsoft will increase the prices it charges British businesses by up to 22% to account for the slump in the value of the pound following the EU referendum result, the software company has announced.

Microsoft announced in its UK tech blog that from January 2017 the software increases will effect cloud based and traditional software which is loaded onto its customers computers. Managed IT providers and software sales houses are likely to follow soon after. Prices for on-premise enterprise software, such as the Office suite, will go up by 13%, while the majority of its enterprise cloud software will increase by 22%.

Microsoft Says -

Microsoft are quoted as saying, “We periodically assess the impact of local pricing of our products and services to ensure there is reasonable alignment across the region, and this change is an outcome of this assessment,” the statement read. “These changes are similar to the recent harmonisation adjustments to pricing in Norwegian krone and Swiss franc we made in April 2016.”

“Even after this adjustment, customers across the region buying in British pound will still find our cloud offerings highly competitive,” the company wrote as part of a blog post announcing the changes.

Microsoft were clear that their existing business customers with enterprise agreements wouldn’t experience a price hike part way through their contract which may help to soften the blow. Redmond also added that prices for business customers with cloud subscriptions like Office 365 won’t change over their subscription term, which is usually 12 months. A point to note is that clients in the EU/EFTA region will also be able to purchase in a variety of currencies.

How does this effect our clients?

This change isn’t isolated and you should also expect other areas of IT to experience a price increase too, Dell for instance have already announced price rises. Whilst 4u Datacentres will try to maintain our current prices for as long as possible, our small margins mean that we can't deviate far from the Microsoft line when it comes to our licencing.

By Mark Kindred.

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