Microsoft has recently announced that it will implement a pricing harmonisation program for its cloud services, which will take effect starting from April 1st, 2023.
This program will review the pricing of Microsoft Cloud services semi-annually, with the goal of aligning local currency pricing with dollar pricing. Twice a year, the exchange rates against the dollar will be reviewed, and local pricing will be adjusted accordingly.
The April 1st price increase will be a +9% adjustment, which will impact all Microsoft 365 licenses, as well as certain PAYG services in Azure. Some common licenses that will be affected include:
- Microsoft 365 Business Basic/Standard/Premium
- Microsoft 365 E1/E3/E5, Enterprise Mobility & Security E3/E5
- Teams Phone Standard
- Teams Phone with Calling Plan (all variants)
- Power BI Pro/Premium
Microsoft has stated that the harmonisation will take place on a semi-annual basis, but the second date has not been announced yet. However, it is expected to be October 1, 2023.
It should be noted that in the UK, there will be a pricing increase this year, but this may not always be the case. In other territories where this program has already been implemented, there have been reductions on some occasions. All adjustments will be based on the exchange rate to the dollar, so local pricing may increase, decrease, or remain the same.
If you are currently on a 12-month commitment through the New Commerce Experience, this will not affect your costs until the term comes up for renewal. However, if you use the flexibility of the monthly commitment, you may want to consider moving your licenses into an annual commitment.
As a valued partner of Microsoft, SpiderGroup understands the impact that the pricing harmonisation program may have on our clients. We want to assure our clients that we will be proactively updating them on any changes that may affect their licenses or services. Our team of experts are ready to answer any questions or concerns that our clients may have regarding the pricing harmonisation program.
We are committed to providing our clients with the best possible service and support during this transition period and our goal is to help our clients navigate these changes and optimise their costs while maintaining the highest level of service and quality.
If you have any questions please feel free to contact us on 0117 9330570 or email us at info@spidergroup.co.uk.
