Microsoft's New Pricing for 365: Feb 2023 UPDATE | Microbyte

Microsoft’s New Pricing for 365: Feb 2023 UPDATE

Microsoft Money

In 2023, Microsoft Azure is streamlining its global cloud and on-premises pricing strategies for a more consistent and transparent experience for customers. The new approach aims to align pricing across markets while also providing better visibility and predictability.

Here’s how this policy will be implemented and the advantages it brings to your business.

Aligning Global Cloud Pricing for Greater Consistency

In response to recent global developments such as the COVID-19 pandemic and the conflict in Ukraine, Microsoft temporarily suspended local currency pricing adjustments, leading to pricing disparities across regions.

In an effort to promote consistency and transparency in its cloud pricing, Microsoft will be implementing a new pricing strategy effective April 1, 2023. The new approach will tie cloud product prices to the local currency exchange rate with the US dollar, offering customers increased predictability and clarity in cost estimates.

This move aligns Microsoft with industry standards, making it easier for customers to compare and make informed decisions about their cloud solutions.

Microsoft is committed to supporting its customers and partners during these challenging times. The company stated, “We understand the uncertainty in the current global landscape and are dedicated to providing the support and resources our customers and partners need to succeed.”

As of April 1, 2023, Microsoft will increase the pricing of its cloud products in the following currencies:

  • GBP: +9%
  • DKK, EUR and NOK: +11%
  • SEK: +15%

Microsoft’s global cloud pricing realignment will be implemented in phases, starting with selected regions, with the goal of completing the process smoothly and efficiently. Communication is key, and Microsoft promises to keep its customers and partners informed and up-to-date throughout the process, ensuring a smooth transition to any pricing changes.

Implication for Customers

The forthcoming pricing adjustment by Microsoft is expected to bring both benefits and challenges to customers. On the positive side, the new approach to pricing will promote global consistency, transparency, and predictability, allowing customers to make more informed decisions when selecting cloud solutions.

Furthermore, Microsoft will conduct biannual evaluations, providing customers with the opportunity to plan and budget accordingly.

However, it’s important to note that exchange rate adjustments may result in increased (or decreased) costs for some customers.

Please note that this change is limited to cloud pricing and will not impact on-premises products.

Microsoft Azure

Microsoft Azure is a cloud computing platform and infrastructure created by Microsoft for building, deploying, and managing applications and services. Azure offers a variety of pricing options, allowing customers to choose the right solution for their needs and budget.

The pricing for Azure services is mostly based on a pay-as-you-go model, where customers only pay for the resources they consume. This gives customers the flexibility to scale up or down as needed without incurring any upfront costs or long-term commitments.

Unlike competitors, Microsoft offers 16 local currencies to pay for Azure services. This allows customers to use their preferred currency and avoid exchange rate fees, reducing costs and providing greater control over expenses.

Final Thoughts

Please be advised that Microsoft’s new pricing strategy will result in an increase for Euro and Pound Sterling customers. To secure your current pricing, we recommend signing up for a 12-month agreement before April 1st. 

If you’re interested in transitioning to an annual pricing plan, our team is available to provide further information and assist you with the process.

Should you want a more in-depth understanding of how Microsoft have developed this new structure, please download your copy below.


Similar blogs

what are managed services

IT Disaster Recovery in London

In our digitally-connected world, reliance on IT systems has become paramount for every facet of modern business operations. However, the escalating dependence on IT infrastructure means the stakes are higher, and there is an increased risk of cyberattacks, hardware failures, natural disasters, and human error, all of which could lead to substantial downtime, data loss,…

Read More

Avatar photo

future of IT

IT Consultancy London

Based in the heart of London with over 20 years of experience providing world-class IT support, Microbyte understands that modern businesses have increasingly high technical requirements. Companies require strategic insights, cutting-edge solutions, and a competitive edge to thrive. Our IT consultancy services are designed to empower your business with the expertise it needs to navigate…

Read More

Avatar photo

cyber essentials checklist

Cyber Security Consultants London

In a time when technological advancements and an increasingly connected world are defining how we live, the importance of cybersecurity has become a paramount concern. With businesses, governments, and individuals alike continuing to rely on digital platforms for communication, commerce, and data storage, it is imperative to safeguard sensitive information, preserve digital integrity, and combat…

Read More

Avatar photo

IT support case study

IT Relocation in London

When it comes to IT relocation, the transfer of technological infrastructure from one physical location to another, working with a team you trust is crucial.  A well-executed IT relocation has the power to safeguard operational continuity while enabling growth and allowing for adaptability in an ever-evolving digital landscape. At Microbyte, we offer full-service relocation solutions…

Read More

Avatar photo

Microsoft Aligns pricing with USD

What is Microsoft Defender for Business

Microsoft Defender for Business is designed with numerous security features to keep corporate users safe from cyber threats. Intended to be used by companies with fewer than 300 employees, the software tool offers broad capabilities to protect the corporate network and the company from bad actors. Brief Overview of Microsoft Defender for Business Defender for…

Read More

Avatar photo

why feedback is important

Why Feedback is a Powerful Tool

Have you ever received an email from a business asking for feedback? We bet you have. Did you give feedback? Did you ignore the email? Did you give 5 stars just so that you can say you gave feedback? You aren’t alone. The average response rate to email-requested feedback rates sits at 26% for most…

Read More

Avatar photo