Member Article

Microsoft Price Increases

Microsoft is facing a backlash from customers after signalling their intention to increase prices of their software when the company alters their European prices to align them with that or the Euro currency. The price increase could increase by a significant amount on several customers who have been loyal to Microsoft over the recent years.

The reaction from customers will come as a bitter blow to their customer base, particularly during this time of expansive development in the technology industry. Microsoft has announced that most customers can “expect a single digit percentage increase” but the failure to guarantee could lead to a large proportion of their customers to switch their allegiance.

The move has led to complaints from customers who believe the increase in price could push companies over the brink and even lead to an increase in software piracy. Speculation was rife and had it that a price rise was going to happen, but the severity of it had not yet been realised by partners

Microsoft Response

Microsoft couldn’t tell us how far back it would be going in aligning the exchange rate, but five years ago the pound bought €1.5, compared to only €1.2 today.

A spokesman played down client fears, predicting modest increases in the UK, although other countries, such as Switzerland, would see prices fall.

“Final pricing won’t be determined until nearer the time, so any calculations made by partners are speculative,” a spokesperson said. “However, based on the exchange rate at end of January, we’d expect the large majority of UK customers to experience a modest, single digit price rise.”

The price rise is planned to take effect on 1 July and are expected to affect Open, Select and Select Plus Licence agreements.

This was posted in Bdaily's Members' News section by David Elvis .