{"id":1127,"date":"2016-10-24T13:10:03","date_gmt":"2016-10-24T13:10:03","guid":{"rendered":"http:\/\/www.rsoftsolution.com\/blog\/microsoft-to-hike-uk-enterprise-prices-after-brexit-pounds-sterling.html"},"modified":"2016-10-24T13:10:03","modified_gmt":"2016-10-24T13:10:03","slug":"microsoft-to-hike-uk-enterprise-prices-after-brexit-pounds-sterling","status":"publish","type":"post","link":"https:\/\/www.rbsitsoftwaresolution.in\/blog\/microsoft-to-hike-uk-enterprise-prices-after-brexit-pounds-sterling.html","title":{"rendered":"Microsoft to hike UK enterprise prices after Brexit pounds sterling"},"content":{"rendered":"


\n<\/p>\n

UK businesses that buy enterprise software or cloud services from Microsoft are facing a price hike\u00a0from January 1.<\/p>\n

On Friday Microsoft quietly released the news of changes to pricing for volume licensing products via its UK TechNet blog<\/a> for IT professionals \u2014 saying it was\u00a0revising pricing in\u00a0pound sterling to\u00a0\u201censure there is reasonable alignment across the region\u201d.<\/p>\n

On-premise enterprise software prices will be rising by 13 per cent, while \u201cmost\u201d enterprise cloud prices in British pounds will increase by 22 per cent to \u2014 in Microsoft\u2019s\u00a0words \u2014 \u201crealign close to euro levels\u201d.<\/p>\n

The reason for rising\u00a0prices\u00a0is of course the June referendum in the UK on continued membership of the European Union \u2014 with the shock no vote<\/a> sending the value of the pound nosediving.\u00a0Some analysts are now\u00a0predicting Sterling will hit parity with the euro<\/a>\u00a0and drop to just $1.10 by the end of 2017.<\/p>\n

Microsoft doesn\u2019t mention the \u2018B\u2019 word specifically but describes\u00a0the price rise as a \u201charmonisation\u00a0adjustment\u201d \u2014 similar to ones it made in April for\u00a0pricing in Norwegian krone and Swiss franc.<\/p>\n

\u201cEven after this adjustment, customers across the region buying in British pound will still find our cloud offerings highly competitive,\u201d it claims.<\/p>\n

What can UK companies\u00a0do to protect themselves against b2b pricing fluctuations in the post-Brexit reality?\u00a0Ellen Leith, founder, of the\u00a0P2PNetwork<\/a>, says the startup made the decision to be billed \u201cas much as possible through the US company\u201d after the referendum vote.<\/p>\n

\u201cUsually we pay for software in dollars now. Not sure how that\u2019s \u2018taking back control\u2019 but there we are\u2026\u201d she adds.<\/p>\n

Back in August<\/a>\u00a0several startups also told TechCrunch they were having to be generally more \u201ccurrency aware\u201d in the wake of Brexit.<\/p>\n

\u201cWe have been forced to be more currency movement aware,\u201d said Hubbub founder and CEO Jonathan May at the time.<\/p>\n

\u201cAlmost our entire cost base is in GBP but increasingly our revenues are in USD or EUR, so we have needed to spend a bit more time making sure we\u2019re not wasting money invoicing in the wrong currencies, and given the long sales cycles in our space, we\u2019ve been careful to make sure quotes or price estimates are in the right currencies and have expiry dates on them.\u201d<\/p>\n

Microsoft notes that UK customers with\u00a0annuity volume licensing agreements for products that are subject to price protection will not face the price hikes\u00a0during the term of their agreement.<\/p>\n

While for products sold through\u00a0resellers, it confirms final prices and currency of sale will \u201ccontinue to be determined by them\u201d.<\/p>\n

It\u2019s not the only company rethinking UK pricing in the wake of the pound\u2019s dramatic fall. In August<\/a> HTC bumped up the price of the HTC Vive VR headset by \u00a370, for instance.<\/p>\n

Although, in the Microsoft case, the Brexit-induced price hike only affects its enterprise products.<\/p>\n

\u201cThis pricing change will not apply to consumer software or consumer cloud services,\u201d Microsoft\u00a0added.<\/p>\n

TechCrunch\u2019s Mike Butcher contributed to this report<\/em><\/p>\n

<\/p>\n

Featured Image: Chris Ratcliffe\/Getty Images<\/small><\/p>\n

Article source: http:\/\/feedproxy.google.com\/~r\/techcrunchIt\/~3\/zx752SOrmWc\/<\/p>","protected":false},"excerpt":{"rendered":"

UK businesses that buy enterprise software or cloud services from Microsoft are facing a price hike\u00a0from January 1. On Friday Microsoft quietly released the news of changes to pricing for <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[19],"tags":[25],"class_list":["post-1127","post","type-post","status-publish","format-standard","hentry","category-enterprise-software","tag-enterprise"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t