Microsoft will increase prices for its Cloud services, including Microsoft 365 and Azure, on April 1, 2023, for select currencies. The company announced the plan in January 2023 on its European news portal.
In Consistent global pricing for the Microsoft Cloud, Microsoft explains that it has taken "several steps to align the pricing" of its Microsoft Cloud products globally. The decision was made so that "will have consistent pricing reflecting the exchange rate of the local currency to the US dollar (USD)" according to Microsoft.
From April 1, 2023 on, Microsoft will adjust the pricing for Microsoft Cloud products in the following currencies (including the adjusted percentage to the current pricing):
- GBP: +9%
- DKK, EUR and NOK: +11%
- SEK: +15%
The change impacts organizations from Europe only, and here only countries from the European Union, as well as Great Britain and Norway. Sweden and Denmark are part of the European Union, but they never adopted the Euro. The price changes take effect at the end of the billing period.
Microsoft argues that the decision "will provide increased transparency and predictability for customers globally" and that it moves to a "pricing model that is most common" in the industry. The company plans to assess the pricing in local currency twice a year, to take currency fluctuations relative to the USD into consideration. It is possible, therefore, that future price adjustments will be beneficial to organizations. Home customer pricing is not affected by Microsoft's decision.
Microsoft increased pricing for its Microsoft 365 products by 20% in the Fall of 2022. It was the first price adjustment of the product in a decade. A second price increase, that affects certain currencies only, may be met with little understanding by affected organizations, despite Microsoft's claims that it is in their best interests.
Google and Amazon have been linking their cloud pricing to the dollar exchange rate for years. Microsoft unveiled a Microsoft 365 Basic plan recently for Home and small business customers. (via Dr. Windows)
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