What are the Microsoft 365 price increases?

Microsoft is changing its pricing structure from 1 April 2023, including Microsoft 365 price increases, taking several steps to align the cost of its Microsoft Cloud products globally. This will have an impact on all user and software licences.

Obviously this is concerning as we all need to use technology to improve our businesses and especially to leverage tools to help us ‘do more with less’ and be more productive and efficient during tough economic times. Microsoft itself is not immune to global events.

How can Pro Drive IT help mitigate the Microsoft 365 price increases?

At Pro Drive we’re here to help and, in response to these increases we’d advise the following:

• You should purchase licenses ahead of the price increases if possible.
• Have regular reviews of your cloud set-ups (which we do for contracted clients) to ensure you are only spending what you need to. Check what you need and what you don’t use for a start!
• Talk to us about how to get more from your Microsoft 365 software. There are many great productivity tools in MS’s 365 suite yet so few companies are using them. We can help you get better value from your license fee.

Should I continue with cloud services?

Absolutely! Cloud services provide access to the latest apps, allow for flexible/hybrid working and offer businesses scalability, security and collaboration opportunities without the need for expenditure on hardware, facilities and utilities. So they do even more than make your business better, they save you money too. In the modern workplace you simply can’t compete without fully joined-up cloud services.

Microsoft, of course, are world leaders in providing innovative and reliable cloud products to businesses, who, in turn, benefit from new and better solutions with increased functionality.

What is the Microsoft price increase?

Microsoft explains that all 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%

How will Microsoft review its pricing going forward?

In the future, Microsoft will assess pricing in local currency as part of a regular twice-yearly review, taking into consideration currency fluctuations relative to the USD.

That means pricing for Microsoft customers located outside of the United States will be based on exchange rate fluctuations rather than being set for the local region. When adjustments are made, prices may increase or decrease depending on how the value of the local currency compares to the price of the goods in USD. For the UK, this means that pricing will change in relation to the value of the GBP against the USD, rather than having a fixed GBP price. We can only hope that the pound will strengthen against the dollar!

When will I have to pay the new rates?

Organisations who opted to remain on month-to-month pricing will pay the new rate set by Microsoft when it changes on 1 April 2023.

Organisations on a 12-month contract will not see any price changes until their contract renews.

Unfortunately, all direct and indirect (via a reseller) customers of Microsoft are subject to the same pricing policies and contractual obligations, so you can’t avoid this price change.

Microsoft states that The Microsoft Cloud continues to be priced competitively, and it remains deeply committed to the success of its customers and partners.

If you would like to talk to us about Microsoft 365 cloud services or any other IT-related issue please contact us on the form below.