January 12, 2023

What is the Microsoft currency-based pricing update?

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What is the Microsoft currency-based pricing update?

Get ready for important changes to Microsoft local currency pricing, coming in April 2023.

As announced late last year, Microsoft has now confirmed that it will be adjusting worldwide pricing in alignment with the USD. Starting 1 April 2023, Microsoft Cloud products and services will increase as below for the relevant currencies:

  • British Pound +9%

  • Danish Krone +11%

  • Euro +11%

  • Norwegian Krone +11%

  • Swedish Krona +15%

Why is this happening?

In November 2022, Microsoft announced that due to global and market conditions local pricing has become inconsistent and detached from the global US dollar price.

In response to this Microsoft communicated that it would align pricing on a semi-annual basis to the market USD price. The aim of this move is to provide long term transparency and consistency to Microsoft’s global pricing model.

These changes affect all cloud products and services, including Azure and apply to all the following agreements:

  • Enterprise Agreement (Commercial, Government, and Enrolment for Education Solutions)
  • Microsoft Customer Agreement for enterprise (MCA-E) – Applies to seat-based offers
  • CSP with MCA applies to seat-based offers (Commercial, Government, and Education Solutions)
  • CSP legacy
  • Open Value (Commercial, Government, and Education Solutions)
  • Open Value Subscription (Commercial, Government, and Education Solutions)
  • Microsoft Products and Services Agreement (MPSA; Commercial, Government and Academic)
  • Microsoft Online Services Portal (MOSP)
  • MCA Online

*Azure purchased through MCA (including CSP) is already aligned with USD so will not be affected.

Who will be impacted?

Customers with agreements that benefit from price protection, e.g. Enterprise Agreements and CSP, will not be affected by these increases for existing products until renewal. However new products to an agreement will be subject to the increase if ordered after 1 April 2023.

Currently these changes do not apply to hardware, on-premises licenses, OEM, consumer software, consumer cloud services or to Azure purchased through the Microsoft Customer Agreement.

As part of Microsoft’s original announcement, they advised that currency adjustments would be considered on a semi-annual basis moving forward. If market conditions require, we would expect to see another adjustment from Microsoft later this year. If such an adjustment is required, we will receive advanced notification that we will communicate to our customers at the time.

Please contact your Trustmarque Account Manager to discuss this announcement further and how we can support you during these changes. Alternatively, get in touch by pressing the button below.

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