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.
The new prices, which will come into effect in January 2017, see the amounts expected for locally hosted software increase by 13%, while “most” cloud-hosted services will increase by the full 22%, the company said in a statement. While once programs like Microsoft’s Office suite were installed locally on PCs, in recent years the cloud-based subscription version, Office 365, has become increasingly popular.
“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,” Microsoft said. “These changes are similar to the recent harmonisation adjustments to pricing in Norwegian krone and Swiss franc we made in April 2016.”
Microsoft’s changes come as part of a periodic assessment of its local pricing “to ensure there is reasonable alignment across the region.” The fall in the value of the pound resulted in Apple hiking hardware prices in September, although the Redmond company says that consumer software like Office 365 and cloud services will not be impacted. However, because Microsoft doesn’t set the pricing offered by resellers, partners could still decide to implement their own increases.
As a result, Astrofox will be considering the impact of the pricing structure change and adjusting our own Microsoft product pricing range to match. This means that from January our Microsoft Office365 clients will likely see an increase in the cost of their services.
If you have any questions in regards to how this may impact your monthly bill, please contact us directly on 0800 098 8871