Microsoft Commercial Pricing Update Jan 23

Microsoft’s have just confirmed their exchange rate adjustments for global cloud products as of April 1, 2023, and wanted to share more information, timing, and context.

Currencies globally have been impacted differently by the macroeconomic environment, which also affected their exchange rate compared to the US dollar. For a sustained period, Microsoft had deferred pricing adjustments based on such currency fluctuations, but as of April 1, 2023, Microsoft is realigning Cloud pricing globally.

This means we are updating local currency cloud pricing in EUR, GBP, SEK, NOK and DKK based on foreign currency fluctuations compared to the US dollar (USD) to have greater price harmonization for our cloud products across the globe. This will ensure that customers worldwide have more closely aligned pricing compared to the USD rate.  Note that customers who license Azure under a Microsoft Customer Agreement on New Commerce have pricing in US dollars worldwide and will not be affected by the local currency-based price changes.

Starting April 1, 2023, the following adjustment will be effective for Microsoft Cloud services:

• British Pound (GBP) prices will adjust +9%
• Danish Krone (DKK), Euro (EUR) and Norwegian Krone (NOK), prices will adjust +11%
• Swedish Krona (SEK) prices will adjust +15%

These adjustments will not affect existing orders under licensing agreements for products that are subject to price protection. However, prices for new product additions under such licensing agreements and purchases under new contracts will be as defined by the pricelist at the time of order.

Moving forward, Microsoft will establish a centralized process in which currency fluctuations and potential pricing adjustments relative to the USD will be assessed and evaluated twice a year. This simplified structure will provide better transparency and predictability for customers no matter where they are based and move to a consistent pricing model that is the most common in our industry.

Microsoft remains deeply committed to the success of its customers and partners. Microsoft will continue to invest to enable customers such as you to innovate, to consolidate and to eliminate operating costs, optimize your business performance and efficiency with automation and AI to maximize your digital investments, and provide the foundation for a strong security strategy. That is why we believe our cloud continues to be priced competitively.

To find out more, do not hesitate to get in touch

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