Microsoft announces price increase as of April 1, 2023 

Microsoft has announced that there will be price increases for Microsoft cloud products (M365 and Microsoft Azure) from April 1, 2023. The price increases on the Danish price lists will be around 11%. Price increases occur as a result of adjustments and exchange rate adjustments. You can read the official announcement here: https://news.microsoft.com/europe/2023/01/05/consistent-global-pricing-for-the-microsoft-cloud/

How should you respond to it? 

Agreements and products that already have a fixed price for a specific period in your Microsoft agreements will not be affected until they need to be renewed. Agreements or orders made from the March price list will not be affected by these price increases either.

This means that the price increase does not affect existing agreements or orders placed no later than March 31, 2023, as they will be price protected during the time stated in the agreement. However, it is important to point out that the addition of new products after April 1, 2023, will be affected by the price increase, i.e., when purchasing new subscriptions. Adding more licenses to existing subscriptions will follow the original subscription start date.
 
There are several options for optimizing your Microsoft agreements depending on when these are to be renewed, which agreements you use (EA, SCE, NCE, or CSP), and what your plans are to use new products within the coming period. 
 

Please contact your contact person at twoday RelateIT if you want to know more. 

 

Details regarding the announced price increases

  • CSP Software Subscriptions and Perpetual licenses are not included in the price increase, as this only cover "online services" = seat-based offers.
  • Price increases do not include On-prem licenses. 
  • A disclaimer*. In theory, Microsoft can both up and down adjust prices depending on the dollar rate, which may mean that by committing for 1 year, you may risk Microsoft downgrading prices, and you are therefore locked to a higher price. Of course, this is something that must be taken into account, but Crayon estimates that the risk of this is minimal. 
Effective by april 1, 2023

The global price adjustment will take effect as of April 1, 2023, and will result in an overall price increase of 11% for Microsoft Cloud Services purchased in Danish kroner (DKK) across the following licensing programs:

  • Enterprise Agreement (Commercial, Government, and Enrollment for Education Solutions)
  • Microsoft Customer Agreement for enterprise (MCA-E) – Applies to seat-based offers
  • CSP with MCA applies to seat-based offers (Commercial, Government, and Education Solutions)
  • CSP legacy
  • Open Value (Commercial, Government, and Education Solutions)
  • Open Value Subscription (Commercial, Government, and Education Solutions)
  • Microsoft Products and Services Agreement (MPSA; Commercial, Government, and Academic)
  • Microsoft Online Services Portal (MOSP)
  • MCA Online
Contact us for more information