In late 2021, Microsoft introduced their “New Commerce Experience (NCE)”.
In essence this served to push customers towards annual commitments to their 365 products. Price rises for monthly payments were avoided at that time by signing up to the yearly payment.
Unfortunately, now, just over a year later, price rises have hit again. And this time they affect everyone, whether you’re on monthly or yearly commitments.
A statement from Microsoft in early April 2023, made on their website, reads as follows:
“Today, we are announcing that Microsoft is taking several steps to align the pricing of our Microsoft Cloud products globally, meaning customers will have consistent pricing reflecting the exchange rate of the local currency to the US dollar (USD). Starting April 1, 2023, pricing for Microsoft Cloud products will be adjusted in the following currencies:
- GBP: +9%
- DKK, EUR and NOK: +11%
- SEK: +15%
In the future, Microsoft will assess pricing in local currency as part of a regular twice a year cadence, taking into consideration currency fluctuations relative to the USD. This will provide increased transparency and predictability for customers globally and move to a pricing model that is most common in our industry.
The Microsoft Cloud continues to be priced competitively, and Microsoft remains deeply committed to the success of its customers and partners. We will continue to invest to enable customers to innovate, consolidate and eliminate operating costs, optimize business performance and efficiency and provide the foundation for a strong security strategy that customers around the world have come to rely on”.
So there you have it: a 9% increase for us in the UK, and potential price rises up to twice per year from now on…
If you buy your Microsoft 365 products through us, and pay monthly, you’ll be seeing these increases in your billing with immediate effect. If you have opted for the annual commitment, you’ll see the increase on the invoice at your next renewal date (which will be in February 2024 for most customers).