Brexit hasn’t quite officially been implemented as of yet though the British Pound has been dropping in value steadily since the vote was passed. As a result, the economy require businesses to adapt their strategies to continue with the profit margins they’ve so enjoyed in the UK. Microsoft has seen fit to increase the prices for volume licensing on January 1st on their products in order to remain financially competitive.
Brexit likely cause of 22% volume license price hike
The increase is being described as a way to realign the pricing so that it’s closer to the euro levels. Microsoft says it’s part of a standard policy of continually checking the relevancy of their pricing schemes and their impact locally. any on-premises enterprise software will be 13% more expensive after January 1st while enterprise cloud services will be 22% more expensive when using the British Pound. The good news is that you’ve already got an existing agreement that goes beyond January 1st 2017, you’re price is secure according to your specific contract. Anything new, however, has to pay the new price.
Certainly the falling value of the British currency is no doubt causing concern for the business sections of Microsoft, prompting them to reevaluate how they’re going to make profit in the same manner. At the same time it could cost some businesses millions more to maintain their current subscriptions, depending on the size, of course. Brexit is only slowly being felt, but it’s a steady increase in costs by consumers in the UK, including businesses.