Watch out! Microsoft licences set to increase by 25.9% – July 1st 2012

Update – 1st June 2012 – New Price Adjustments Announced by Microsoft, which have kindly been shared by our Partners Software One to ensure that you can act now to save yourself significant costs.

In May, Microsoft announced a preliminary price preview and indicated that prices for Microsoft’s volume licensing programs would likely increase between 7.5% and 33.5%, from 1st July 2012.
Microsoft released final July pricing to partners today. Microsoft has made additional minor adjustments to UK prices that factor in recent exchange rates and are now able to make smaller price changes than those previewed a month ago.

Why are these changes being made?

To address sustained currency differences between European countries, Microsoft will adjust prices for volume licensing partners in the region starting 1st July 2012. 

What are the new price changes?

The range of increase is now less than when first announced will be between 1.7% and 25.9% depending on the volume licensing programme. This is the average increase by programme and in some cases the increase may be less. The key headlines are as follows:

   ■   Enterprise Agreement prices will increase by an average of 18.7%
   ■   Select Plus agreement prices will increase by an average of 17.7% 

What are the options?

Customer Scenario Impact Analysis outlined below:

    ■   New and Renewing Agreement renewed before 1st July Current pricelist used. EA has price protection clause for duration of agreement.
   ■   Mid-term Enterprise Agreements EA has price protection clause so no price increase for duration of agreement.
   ■   New or Renewing EA signed from 1st July onwards Prices will increase for all new/renewing agreements signed 1st July 2012 onwards

What does this mean for you?

Prosperity 24.7 interpret this to mean, quite simply, get your skates on to save yourself a significant increase in licences. If you are considering a technology estate refresh within the next six months, odd as it may seem, you might want to secure the licence agreement as soon as possible to avoid the significant pricing implications outlined above.

If you are an organisation greater than 150 staff, you need to be exploring whether you are eligible to enrol in an EA agreement before your future software purchases suddenly become in excess of 25% more expensive.

For more information on the announcement and how these changes specifically affect your organisation speak to Prosperity 24.7 today – +44 (0) 1534 877247.