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You might have heard that Microsoft are increasing their pricing by 9% on April 1st, 2023. In contrast to last year’s price increases on NCE and Microsoft 365, this is applicable to ALL Microsoft products/services.

As you may recall, in March 2021, Microsoft change their licensing model to the New Commerce Experience (NCE). As regular upgrades take place to enhance the NCE, a further increase will take place on April 1st.

As a reminder, the NCE cost increases affected the following license types:

  • Microsoft 365 Business Basic (20% Increase)
  • Microsoft 365 Business Premium (10% Increase)
  • Office 365 E1 (25% Increase)
  • Office 365 E3 (15% Increase)
  • Office 365 E5 (8.5% Increase)
  • Microsoft 365 E3 (12.5% Increase)

Local currency pricing will be re-evaluated by Microsoft twice a year to account for currency fluctuations. There will be more predictability and transparency for customers.

Microsoft remains steadfastly devoted to the success of its customers and partners, and the prices for the Microsoft Cloud remain extremely competitive. Microsoft’s primary priorities will continue to be investing in innovation, consolidation, and lowering operating costs, as well as enhancing company performance and efficiency and offering a robust security plan..


Why are Microsoft making these changes?

For several months, Microsoft customers and partners have been able to acquire the company’s products for up to 40% less than the equivalent global US dollar prices. With these adjustments, regional rates will be brought more closely in line with USD pricing, with potential for increases or decreases based on local currency swings.

What is the change being made?

Microsoft will start using a clearer, more transparent cadence in 2023 to improve pricing harmonisation for the Commercial Cloud across geographies. Depending on market conditions, partners and clients with pricing in local currencies will be able to schedule semi-annual price alignments to the USD and global parity.

Why is Microsoft changing local currency pricing at a semi-annual cadence?

Microsoft evaluates the effects of its regional pricing for software and online services on a regular basis to make sure there is consistency across areas. By switching to a semi-annual cycle, we can provide better clarity to our consumers regarding the timing of price changes and guarantee a straightforward and uniform pricing strategy

Do Microsoft ever decrease prices?

Yes, Microsoft has decreased prices most recently in New Zealand and Taiwan. As part of the new semi-annual cadence prices will be aligned up or down to maintain global pricing alignment.

We will be also advising of the change on forthcoming invoices.

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