Local Currency Price Adjustments for Microsoft's Commercial Cloud
Wednesday 4th December 2024
Microsoft has announced upcoming price adjustments for the Brazilian Real (BRL) and the British Pound (GBP) effective 1st February 2025. These adjustments aim to align prices more closely with global levels, ensuring consistent pricing across different geographies and currencies.
British Pound (GBP): Cloud services will see a decrease of 5% to 6%, upon your next renewal after February 2025.
This semi-annual process reflects the exchange rate of local currencies to the US dollar (USD), providing a fair and transparent pricing structure Microsoft’s UK customers.
Working with a Partner has never been more important. This change, combined with the other recent announcements on billing changes and the future of EA means you may have a turbulent next few months.
I am on an EA agreement, what does this mean for me?
Azure: For EA customers, you will see a reduction in cost 1st February. Those with a Microsoft Azure Consumption Commitment (MACC) will find it harder to achieve the commitment due to a reduction in Azure costs (the commitment remains the same). Purchasing third-party solutions through the Azure Marketplace can help to decrement the commitment; reach out to your account manager to explore our marketplace services.
Reserved Instances (RI's) and Azure Savings Plan: There will be no change. These can either be purchased and paid for upfront, or you can opt for monthly billing.
Online Services: Price protection within existing agreement, so you will not see a decrease in price until the end of the agreement term, upon renewal.
I am on a CSP agreement, what does this mean for me?
Azure: Azure pricing is adjusted, on a monthly basis, to align to FX rates. Therefore, you will have already seen a reduction in price.
Online Services: There will be a price decrease from 1st February, upon renewal. New subscriptions ordered after 1st February will see a 5% reduction.
Reserved Instances (RI's) and Azure Savings Plan: There will be no change. These can either be purchased and paid for upfront, or you can opt for monthly billing.
In Other News
- 15% promotion on Microsoft 365 Copilot until the 31st December - Buy Now to lock in the price!
- 15% promotion of Microsoft 365 E5 from 1st January 2025
- Price increase on 1st April for Power BI and Teams Phone
- 5% price increase for CSP customers, purchasing on an annual commitment, with monthly billing from 1st April
- Monthly billing option now available for Microsoft 365 Copilot
UK Based Organisations: What you need to know
This price decrease can have a larger effect on the UK than a simple price decrease. When you renew after April 1st, if you choose monthly billing, the new 5% increase will come into play. However, as price harmonisation will take effect for the UK market from 1st February, this 5% to 6% price decrease will counterbalance the monthly billing increase, allowing us to continue offering this option to you, cost-neutral. If you choose to pay up front for the full year, after February, once price harmonisation has kicked in, you will benefit from 5-6% savings as an organisation. To find out more, please visit the Microsoft website for the full announcement here.
While we are confident that this potential reduction your licensing estate costs is good news. This reduction will not not have been budgeted for! Now should be the time to asses this extra budget and see what further innovation this could unlock! Be it Professional Services, Consultancy or even taking advantage of new Copilot licenses, Bytes can help!
Get in touch with us at [email protected] to book in a 1-1 session around how we can support your organisation.
Want to keep informed? Sign up to our Newsletter