Microsoft Price Rises
As we wrote in the aftermath of the EU referendum result, the weakening British Pound was likely to impact on future prices for hardware and software.
Hardware manufacturers such as Dell were quick to increase prices, with 10-15% rises seen in the early Summer.
Microsoft UK-wide price increases
Although many other vendors pretty quickly followed suit, Microsoft has only recently announced their prices rises which will take effect from January 1st 2017. Affecting all commercial Microsoft customer,s these changes will increase the licensing costs for on-premise enterprise software by 13% and enterprise cloud prices by 22%.
Please note that this will affect all vendors in the UK and will be passed directly on to customers.
So will my hosted prices go up by 22%?
Akita remain committed to providing cost-effective cloud offerings and will be absorbing as much of this increase as possible. For our hosted clients, the Microsoft license fee makes up part of the price, along with hardware, datacentre, and other related costs and so the likely increase to clients will be significant less than 22%.
Office 365 clients
For commercial clients with Office 365 services, it is unavoidable for the 22% increase in costs to not be passed on directly.
When will prices go up?
Although many of our competitors will be implementing immediate increases, it is important to note that Akita’s prices are protected until the renewal date of the service in question. Therefore, no increases will take place until the end of existing contract period. However, it is anticipated that by January 2018 all Microsoft cloud customers will see the revised pricing in their renewals.
Will Akita keep providing Microsoft services?
Even with these changes, the Microsoft suite of cloud product remains very cost-effective and Akita remain fully committed to providing these services in the long-term.
Need more information?
Our Technical Account Managers will be able to discuss this in more details but if you would like to find out how this may affect your future pricing, please do not hesitate to call us on 01732 762675.