In January 2013 Microsoft users will be hit by price increases of up to a third, a move that will surely affect businesses throughout the UK.

Providers and businesses using SPLA and Independent Software Vendor (ISV) licences will incur the biggest price hike, with an increase of 33.4%. Microsoft Online services will also increase by 21%, with Office 365 users taking a 21% hit. Microsoft open licence users will only incur a 7.5% increase. Microsoft

Scott Dodds, Microsoft’s UK general manager of marketing and operations, commented on the news, stating that: “Because of sustained currency differences between European countries, Microsoft is taking action to establish and maintain price consistency in the region for our volume licensing programmes.”

“These adjustments will result in £ sterling price list rises for new volume licensing contracts of between 7.5 percent and 33.5 percent, to ensure greater consistency with the equivalent Euro price list.”

Richard May, Managing Director of virtualDCS said: “When Microsoft first announced a price increase nobody in the industry predicted that it would have been so colossal. Before this increase, licencing for UK companies were already approximately 10% more expensive than the licencing for American businesses.

There are rarely geographical boundaries when selling Cloud services; however, the new price increase presents a massive disadvantage for UK Cloud providers that are competing internationally. Microsoft is now potentially risking the profitability and productivity of software and hosting companies throughout the UK.

virtualDCS will continue to support our customers throughout the aftermath of the news and I would encourage them to speak to a member of the team if they have any concerns.”

To contact the virtualDCS team call 03453 888 327 or email enquiries@virtualdcs.co.uk for more information.

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