Microsoft have announced company wide increases to their subscription based product costs. Here is some Cloud9 Insight to help you understand the dates and implications.
The official announcement:
“Microsoft is announcing British pound price changes to harmonise its prices for enterprise software and cloud services within the EU/EFTA region, effective January 1, 2017. Microsoft periodically assesses the impact of its local pricing of products and services to ensure there is reasonable alignment across the region and this change is an outcome of this assessment.
Starting January 1, 2017 British pound prices for on-premises enterprise software will increase by 13% to realign close to euro levels. Most enterprise cloud prices in British pound will increase by 22% to realign close to euro levels. Even after this adjustment, customers across the region buying in British pound will still find Microsoft cloud offerings highly competitive.”
The following FAQ is focused on the cloud subscriptions most relevant to Cloud9 customers including Office365 and Dynamics CRM/365:
Will my license costs go up on January 1st 2017?
For subscription based licensing, no, although the increase comes into effect on the 1st January 2017, it will only affect you on your license anniversary date which is the date you bought your first license.
The pricing change also takes into account, the anniversary date of each license type you hold. For example, if you bought Office 365 on one date and Dynamics on another, the prices will change on those exact date for each product.
To be clear; If you purchased the first Office 365 license on 1st April 2016 then the Office365 licence cost will change on the 1st April 2017 and if you purchased Dynamics on the 1st October 2016 then the Dynamics licence cost will change on the 1st October 2017.
There is an exception!
Subscribers who purchased Office 365 at the higher “no commitment” per month price – Their licence will increase on the 1st January 2016.
What about additional licenses purchased from 1st January 2017 and my upcoming license anniversary?
Unless you purchased the licenses directly through your Office 365 portal, you can continue to buy more licenses at the current, reduced rate until your anniversary date. At this time, all of your licences of that type will increase to the new price.
Will Microsoft make another pricing change?
Microsoft periodically assesses the impact of its pricing to ensure there is a reasonable alignment with the needs of its customers, partners, and the marketplace across the region and globe. While the last price increase was a number of years ago, Microsoft may make further increases or reductions in response to its assessment and feedback.
Is the price increase a result of Brexit?
Microsoft’s decision to adjust their British Pound pricing is not a result of UK’s decision to leave the EU. However, sustained currency fluctuations have led to misalignment of the British Pound pricing in the region.
What does this mean for me and my licences?
Cloud9 are carrying out a rolling licence audit of our customers and your account manager will be communicating with you individually, as your renewal date gets closer. Feel free to contact firstname.lastname@example.org to organise a more immediate licence audit.