Microsoft global price increases in 2023


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Microsoft price increases are coming – again. They have announced they will be performing “price harmonisation” in 2023 – where they will be bringing local currency pricing in line with US Dollar (USD) pricing. They say this is to give customers “more consistent pricing”, but I’d say it mainly to stop organisations purchasing in regions other than their primary location.

They state that some products in some regions are up to 40% cheaper than the US pricing and I believe the Euro is around 15% cheaper. Once the initial adjustment is made, Microsoft will continue the process on a 6-monthly cadence going forward to keep ensuring local pricing doesn’t drift too far from USD again. They do say that prices will be “aligned up or down” so it will be interesting to see what happens to pricing in regions such as Australia that typically pay more than USD for more products.

While the focus of the announcement is cloud pricing, on-premises software pricing will also be affected although Microsoft will consider “local and regional market dynamics including competition, business models, local currency rates and local inflation” – which includes rising energy costs.

More changes for Japan & Korea

Alongside the above, Microsoft have also revealed they will be revising pricing across all products (on-premises and cloud) in Japan & Korea from April 1, 2023. The increases are as follows:

Japan

  • On-premises = 20% increase
  • Online services = 15% increase

See Japanese announcement here.

Korea

  • On-premises = 15%
  • Online services = 11%

Future impact

Those of you with long-term contracts such as Enterprise Agreements won’t be affected until your renewal (or if you add new products) but now is the time to start planning how this will alter budgets over the next few years. Also, don’t forget the O365/M365 price increases in March 2022 that will also kick in on certain products you may have on your contract.

Update

An announcement on Jan 5th, 2023 for price increases across GBP, EUR, DKK, NOK, SEK currencies.

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Podcast: Microsoft New Commerce CSP changes


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Microsoft recently announced a range of upcoming changes to CSP via their “New Commerce Experience” and it’s safe to say that it’s caused some consternation among Microsoft partners – and rightly so really.

Westcoast invited me onto their “Cloud Talk” podcast to talk through some of these changes, what they mean for partners, and what the future might look like. We also talk about the Microsoft 365 price increases.

I had a great time talking to Tom about all this and hope you find the podcast useful and interesting – we cover quite a bit in 34 minutes! Check it out on Spotify here:

For more background, check out my blog posts:

New Commerce Experience changes

Microsoft 365 price increases

Microsoft EMS & Intune price increases


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Microsoft are adding a raft of new features to both EMS (Enterprise Mobility & Security) and Intune, these include:

  • Microsoft Tunnel VPN features for Android and iOS devices
  • Enhanced MacOS management capabilities
  • New endpoint analytics features
  • Various enhancements to Microsoft Endpoint Manager

These, and other, additions mean that Microsoft are putting the prices up. From July 1, 2021:

  • EMS E3 will increase from $9 pupm to $11
  • Intune will increase from $6 pupm to $8

However, the price for Microsoft 365 E3 won’t increase (and so one must assume that neither will E5) – making the bundle option that little bit more attractive.

See the Microsoft announcement here.

Microsoft Office 2013 price increases & license changes


The upcoming 2013 release of Microsoft’s Office suite & the related products brings with it not just great new features but also price increases.

The affected products and the expected increases are:

  • SharePoint Server +38%
  • SharePoint 2013 Standard User CAL +15%
  • Exchange 2013 Standard and Enterprise User Cals +15%
  • Visio Standard 2013 +20%
  • Visio Pro 2013 +5%
  • Project Standard 2013 and Professional 2013 +5%
  • Project Server 2013 +15%
  • Lync Server +400%

An increase in price when a new version is released is quite common, with most manufacturers, but coupled with the December 1st 15% increase on user CALs and just 6 months after the up to 30% price rise relating to the Euro/GBP levelling – I do not anticipate this being well received by customers!

The big takeaway from this is *If you’re looking at purchasing these products, look at the cost of buying now with SA (as well as the extra benefits) compared to the projected costs from December onwards*.

There are also a number of licensing changes about to take effect:

Lync

Lync Server Std & Enterprise are merging into 1 SKU, with a price of around £2000+ – a significant increase over the current Lync Std price. This does bring the failover & load balancing features to all Lync 2013 organizations.

Sharepoint

Microsoft have, in many areas, moved to simplify licensing and SharePoint is another area.

FAST Search Server & Search Server are no longer separate entities, they’re now simply part of SharePoint Server 2013.

A big one here, SharePoint for Internet Sites is no more. Microsoft have done away with the (up to) £30,000+ license, which was required for external user access to SharePoint content, and rolled those licensing rights into the standard server license. From the October Product Use Rights (PUR) document:

“CAL WAIVER FOR USERS ACCESSING PUBLICLY AVAILABLE CONTENT
CALs are not required to access content, information, and applications that you make publicly available to users over the Internet (i.e., not restricted to Intranet or Extranet scenarios).”

I imagine that this will partially contribute to the increase in price we’re seeing with 2013.

Exchange

Basic Anti-Malware protection will be baked into Exchange Server 2013

External Connectors

External connector licenses have been removed for both Exchange 2013 & Lync 2013. Again from the October 2012 PUR:

“External User Access: Licensed with Server”

Visio

Again in a move to simplify the SKU line up and make it easier for customers to make the right selection, Visio Premium is being discontinued and all it’s extra features will be moved into Visio Pro 2013.

Software Assurance

Organizations who purchased any products that are due to be discontinued along with Software Assurance need not worry, your benefits will continue and you will receive access to the relevant 2013 version.

Office 365

Something that Microsoft have not mentioned much at all and have in fact been reluctant to discuss, is that Visio & Project are being made available online via Office 365. This will be of big benefit to many customers, enabling easier collaboration among staff no matter their location.

Another benefit of this may well be around Software Asset Management (SAM). It’s common to see organizations over licensed for Project & Visio, Office 365 may make it easier for them to track how many licenses they have and who they are assigned to.

Microsoft finalizes Price Increases


Microsoft’s impending price increases have been the subject of much discussion recently, with customers and partners working together to negate the impact this will have on budgets going forward. However we’ve only had rough figures as to what the price increases will actually be so it’ s been a little odd! However, we now have final numbers for the percentage increases:

image

As you can see, the increases aren’t as hefty as first expected, due to the volatile Euro.

You’ll also notice that Government Open License is being re-instated from next month.

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