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As we know from previous reports, Microsoft has adjusted their pricing structure for cloud licensing and software to align global products and services to the US Dollar exchange rate. These reviews will be conducted twice a year, meaning Microsoft customers should expect products and services to fluctuate in cost. This month, we’ve been informed that Microsoft will be rolling out these changes for New Zealand, Australia, Canada and Switzerland. As per the current exchange rate, pricing for New Zealand Dollar, Australian Dollar and Canadian Dollar has increased, whereas Swiss Franc has reduced.
In this article, we will share what the price changes for these countries are, the licensing programs that will be impacted, and provide practical tips on how you can effectively prepare to mitigate the impact on your business.
The new commercial pricing for New Zealand, Australia, Canada and Switzerland is expected to adjust to the following revised prices:
Any new or renewing Microsoft cloud license programs and on-premise software contracts will be impacted by these new prices as of September 1st 2023.
Existing orders placed by business customers under commercial licensing agreements for products that are eligible for price protection will remain unaffected by these pricing adjustments. However, new product additions and purchases made under new contracts will be subject to the updated price list at the time of ordering.
From September 1st 2023, Azure customers with Azure Commitment Discounts (ACD) or Azure Savings Plans will also experience the impact of these changes.
Pricing adjustments for the these local currencies will apply to new and renewing contracts for commercial cloud services available through the following commercial licensing programs:
It is important to highlight that the pricing of current subscriptions for seat-based cloud services in both legacy CSP and new commerce CSP will be safeguarded at the original billing price for the duration of the subscription. Any additional CSP seats added to an existing subscription (with an active subscription prior to September 1st 2023) will be charged at the original billing price. However, expiring subscriptions or new subscriptions purchased by a partner on or after September 1st 2023, will be subject to the updated price list, including the price adjustment.
Microsoft is trying to consolidate prices globally to ensure a fair offering to businesses worldwide. In the long-term, this unified approach will ensure consistent and transparent pricing for all. However, in the short-term some businesses may feel uneasy about this change.
We are working with our customers to prepare for this change ahead of its implementation, to ensure our customers have done all that they can to minimise the impact this will have. By optimising our customers’ Microsoft services, reviewing seat-based licensing and forecasting future technology requirements, the businesses we support will only be impacted by these price changes where completely necessary.
Ensuring you have a robust strategy for your Microsoft licensing is vital when preparing for price adjustments like this one. As a Microsoft Solutions Partner, we provide each of our customers with a dedicated Technology Success Manager who collaborates closely with them to develop a technology roadmap that includes budget planning. The aim is to minimise disruption caused by inflation and other macro-economic factors, while consistently enhancing technology adoption and security measures.
If you use Microsoft products and services in your business and want to prepare effectively for these changes ahead of the roll-out date, we can help.
Book a meeting with us today; one of our friendly technology experts will be happy to answer your questions and help you prepare for these price changes.