This price adjustment means that from 1 April 2023, GDP pricing on all Microsoft Cloud services will increase by 9%. These price changes follow hot on the heels of the increases that came into effect on 1 January 2023 for all Microsoft SQL Server on-premises licenses.
Going forward, Microsoft says it will assess pricing in local currencies on a twice-yearly basis. So in the future prices could go up or down, depending on fluctuations to the USD to GDP currency exchange rate.
The April 23 price increase will affect popular offerings such as Azure, Dynamics 365 and Microsoft 365. That includes customers who subscribe to Azure on a PAYGO subscription directly with Microsoft.
For customers with an annual commitment, these pricing changes will take effect at their next renewal date after 1 April 2023. Meanwhile, customers on a monthly commitment can expect to see the price increase in their first monthly renewal after that date.
Increases in license costs are never welcome. However, Microsoft’s new price review regime introduces some degree of predictability when it comes to knowing when the next price change is on the horizon. Plus, it may well be that these prices go down if the UK pound performs more strongly against the US dollar.
In the meantime, however, the April price change may prompt some to take action. With that in mind, here are some top tips on ways organisations can look to mitigate the cost impact of these price updates to their business.
While the upcoming price increases may be concerning, it’s important to remember that Microsoft’s cloud services offer a high degree of scalability. Which means businesses can quickly and easily increase or decrease the resources and licenses they need.
With some clever strategic thinking, and some basic housekeeping, it’s possible to ensure that your organisation only pays for what it’s actually using in the most cost effective way possible. All the while making the most of the opportunities the cloud has to offer.