Important changes to Microsoft local currency pricing coming in 2023
Beginning in 2023, Microsoft will implement a defined and transparent cadence to align Microsoft Cloud pricing across regions.
While competitors including AWS are pricing mainly in USD, Microsoft continues to offer 16 local currencies across all channels to customers. With a more active and predictable adjustment cadence, local currency pricing will be better aligned to New Commerce Azure MCA pricing in USD.
What’s next?
Microsoft announced: October 2022 – ”Microsoft is deeply committed to the success of its customers and partners. In light of the changing economic environment and other world events, we have deferred pricing adjustments based on currency fluctuations thus far. However, after a sustained period of lower local currency Microsoft cloud pricing in many regions of the world, we’re now beginning a process to realign our prices globally.
Beginning in 2023, Microsoft will implement a defined and transparent cadence to align Microsoft cloud pricing across regions. Organizations of all sizes with pricing in local currencies will be able to plan for pricing alignment to US dollar (USD) and global parity at semiannual intervals, subject to market conditions.
Azure offerings sold through the Microsoft Customer Agreement (MCA) are priced in USD globally, therefore those list prices will not be affected by these semiannual adjustments.
Organizations buying cloud services will continue to find Microsoft cloud offerings highly competitive, and we believe that digital technology can help organizations mitigate some of the current challenges and save costs in other areas of their business.
Additional communications and details will be shared in upcoming weeks and months.”
FAQ Microsoft pricing update
What is the change being made?
Beginning in 2023, Microsoft will implement a more defined and transparent cadence to provide better Commercial Cloud pricing alignment across regions. Partners and customers with pricing in local currencies will be able to plan for pricing alignment to USD and global parity at semi-annual intervals, subject to market conditions.
Why is Microsoft changing local currency pricing at a semiannual cadence?
Microsoft regularly assesses the impact of its local pricing for software products and online services to ensure there is alignment across regions. Moving to a semiannual cadence will enable greater transparency for their customers on the timing for pricing adjustments and ensure a clear and consistent approach to pricing.
Why does Microsoft adjust prices due to foreign exchange?
Cloud services can be purchased globally and many of their competitors price in USD globally. MS pricing updates are based on local currency fluctuations and other factors to ensure global consistency in their pricing.
Does this mean that my pricing will be changing all the time?
Pricing updates are based on local currency fluctuations and other factors to ensure global consistency; this is the same process, but rather than occurring at any time of year, there will be a set semiannual cadence. Partners and customers with pricing in local currencies will be able to plan for pricing alignment to USD and global parity at semi-annual intervals, subject to market conditions.
Does this announcement mean that all pricing will soon increase globally?
Only pricing out of alignment will be updated and Cloud prices may be adjusted upward or downward based on prevailing market FX rates. Additional communications and details will be shared regionally in the upcoming weeks and months on specifically what will be changing in the first half of 2023. Note: USD pricing and MCA Azure plan on New Commerce which is USD pricing will not be impacted.
What about on-prem?
They continue to prioritize local pricing stability for OnPrem. Although any FX pricing adjustments for OnPrem will follow the same semiannual cadence, the evaluation will continue to consider many factors such as local and regional market dynamics including competition, business models, local currency rates and local inflation.
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