Microsoft hikes business software and cloud computing services in UK

Microsoft’s enterprise customers who are covered by an existing on-going agreement will be affected only when their agreements are renewed.

The outcome of Britain’s historic referendum has cast yet another long shadow on the country’s economic and financial outlook.

Theresa May’s government is yet to publicly disclose which road she will take when she invokes Article 50 of the EU Lisbon Treaty, which will trigger Britain’s two year negotiated exit from the European Union.

So as to manage their risk profile better, many tech companies have already shifted base. Many others, including Microsoft, have said the prices of their products will need to be amended and has confirmed that from January 1 2017, prices across its business product portfolio will rise by 13% while cloud computing services will see a hike of 22%.

The change is in tune with Microsoft’s periodic review of local pricing “ensure[s] there is reasonable alignment across the region.”

Following Brexit, the sterling was seen hovering near about its 31-year low, Apple also raised its hardware prices in September.

Microsoft has clarified that software typically used by consumers, including office 365 and cloud services will not be affected by this hike. However, it has clarified, it does not set the prices offered by resellers. Following the general trend, resellers and partners could implement a price hike.

Customers with existing agreement will be protected from this price hike, until they renew their subscription.

“Customers with Enterprise Agreements have price protection on previously ordered enterprise software and cloud services, and will not experience a price change during the term of their agreement,” said a statement from Microsoft. “Similarly, business customers with cloud commitment subscriptions such as Office 365 also receive price protection during their subscription term, which is normally twelve months from the start of paid subscription.”

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