Beginning in 2023, Microsoft will implement a defined and transparent cadence to align Microsoft Cloud pricing across regions.
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.”
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.
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.
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.
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.
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.
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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