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. For example, in April 2016 Microsoft made similar harmonisation adjustments to its pricing in the Norwegian krone and Swiss franc.
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. For indirect sales where Microsoft products are sold through resellers, final prices and currency of sale will continue to be determined by resellers. In the EU/EFTA region, partners will continue to have access to prevailing prices in euro, Norwegian krone, Swiss franc, Swedish krona, and Danish krone, along with revised prices in British pound.
For business customers, these changes will not affect existing orders under annuity volume licensing agreements for products that are subject to price protection. However, prices for new product additions under such volume licensing agreements and purchases under new contracts will be defined by the pricelist at the time of order. This pricing change will not apply to consumer software or consumer cloud services.
How does the British pound price change relate to October 1, 2016 changes to Azure?
Starting October 1, 2016 Microsoft improved the transparency and simplicity of Azure pricing to ensure customers get the best possible prices regardless of where they buy. Microsoft lowered some Azure pricing and introduced new offers to ensure Azure pricing is competitive and transparent. Effective January 1, 2017 customers purchasing in British pound will continue to enjoy these benefits at levels similar to customers purchase in euro. Even after this cloud price adjustment, customers across the region buying in British pound will still find Microsoft cloud offerings highly competitive.