Microsoft have announced that Australian pricing for both cloud and on-premises licences will be changing from 1st September 2023. Here’s what you can expect to happen later this year…
One of the biggest benefits of using cloud-based services is that they can be used anywhere. The cloud is a truly global technology, and as you may already have noticed, many providers offer their services in US Dollars (USD) as standard, regardless of where those services are going to be utilised.
Microsoft are different.
Microsoft are one of the few providers offering regional pricing structures. This means that each business, no matter where they are in the world, can easily understand costs in their local currency.
While this brings benefits to local organisations, it presents a challenge for Microsoft themselves, who face difficulties in maintaining pricing transparency and consistency across all their global markets.
In an effort to combat this, the company have announced that they will be making changes to international licensing fees to ensure regional pricing aligns more closely with standard USD fees. These changes will apply to most businesses paying for Microsoft services in Australian dollars (AUD), as well as a number of other currencies including New Zealand dollars (NZD).
These changes are not expected to apply to hardware, consumer software, or consumer cloud services. However, Microsoft have confirmed that pricing will be subject to change for both new contracts and renewed existing contracts, for both commercial cloud services and on-premises solutions.
What this means for you
From 1st September 2023, AUD pricing for Microsoft licences will increase by 9% for cloud and on-premises services. This marks the first time since 1st January 2019 that Microsoft’s cloud pricing has been adjusted in Australia. It’s also the first time in around 15 years for on-premises fee adjustments.
This price increase will apply to all our customers using Microsoft services.
Any new subscriptions for cloud and on-premises services commencing on or after 1st September will be subject to the new licensing fees immediately. For customers on monthly subscriptions, the price increase will come into effect on the first monthly renewal date after 1st September. Yearly subscriptions will be charged at the new rate from the first anniversary following 1st September.
Despite the 9% increase, Microsoft is assuring customers that fees are still highly competitive.
Planning for future changes
Due to the underlying reasons behind the changes – the desire to introduce greater consistency in global pricing – Microsoft’s new fees may change again. The company have confirmed that regular reviews will be undertaken, with possible adjustments being made at twice-yearly intervals, on 1st February and 1st September. This means that licensing fees may increase or decrease depending on a wide range of factors, including foreign exchange rates, inflation, and local economic conditions.
As part of our commitment to providing our customers with the best possible service, we aim to inform Microsoft users of fee changes with as much notice as possible. Keep an eye on our blog for updates, or get in touch with us if you have any questions regarding Microsoft’s upcoming changes.
