On January 5, Microsoft announced on its website a price change in its Microsoft Cloud products worldwide, with the aim of aligning the exchange rate of the local currency to the US dollar (USD). Said change will become effective as of April 1, 2023 and will be adjusted in the following currencies:
- GBP: +9%
- DKK, EUR and NOK: +11%
- SEK: +15%
What is the reason for this change on the part of Microsoft?
Currencies have been affected differently by the global macroeconomic environment, and this has influenced their exchange rate against the US dollar (USD).
How does the Microsoft Cloud pricing change affect?
- Existing subscription prices for license-based cloud services in New Commerce CSP will maintain the original price for the term of the subscription.
- CSP seats added to an existing active subscription before April 1, 2023 will also maintain their original price for the term of the subscription.
- In the case of Azure on CSP, you already have a global price in dollars (USD) with its conversion to local currency on a monthly basis, so you will not be affected by the price change.
- Conversely, for example, subscriptions new or renewed on or after April 1, 2023 will already be subject to the new revised prices.
- For Enterprise Agreements (EAs), prices will be maintained for the term of your subscription due to price protection. Any renewal, new agreements and/or added products will have the current price applied at the time of the order.
According to the news on the Microsoft website, it states that in the future it will establish a centralized process in which it will evaluate prices in the local currency twice a year, taking into account currency fluctuations in relation to the dollar (USD). This simplified structure will provide greater transparency and predictability for customers no matter where they are, and move to a more common pricing model in our industry.