Microsoft price increases coming 1st January 2017

Piggy bank on a desk

Recently Microsoft announced that they will be increasing the prices of their services, which will take effect from 1st January 2017.

The cost of on-premise enterprise software will increase by 13% and cloud services (such as Office 365, Azure and Dynamics 365) will increase by approximately 22% in order “to realign close to euro levels.” You can read the official Microsoft announcement here.

Price evaluation is carried out regularly and many other vendors have recently done similar, such as Apple, Dell and HP due to currency fluctuations. While price increases are never desirable, they are unfortunately inevitable.

What this means for existing customers

Existing volume license agreements are price protected for the duration of the contract. For example, customers with Enterprise Agreements for 3 years will retain existing pricing until the time of renewal. If you renew after 1st January 2017 then you will subject to the new pricing.

What this means for new customers

For new customers, if you purchase any of these services before the 1st January 2017 then you will be able to take advantage of the ‘reduced’ licensing cost before the increase. Any new licensing contracts after 1st January 2017 will be in line with the new price levels.

Why Office 365 and Dynamics 365 are still great value

Although prices for Office 365 and Microsoft’s recently launched Dynamics 365 are increasing, we still believe that they still offer great value for businesses.

Both products have seen rapid and regular innovations and new features and applications being added at no extra cost within the licensing subscription. For example, the addition of Planner and Teams to Office 365 this year bring a whole host of new features and functionality to the suite - not to mention the growing improvements to existing applications, such as SharePoint 2016. Meanwhile, Dynamics 365 has built upon the existing Dynamics CRM suite while adding ERP software and new tools such as PowerApps and Microsoft Flow to the mix to further empower users.

If you haven’t seen that the new Dynamics 365 or seen the latest updates to Office 365 then please get in touch for a demo or more information.

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