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Microsoft hikes UK enterprise software and cloud prices as pound tumbles

The software giant's policy of harmonising prices across Europe means charges go up from 1 January 2017

Microsoft has announced a significant increase in its software and cloud pricing for UK customers, as a result of the fall in value of the pound.

From 1 January 2017, Microsoft users in the UK will see a 13% hike in enterprise software licence fees, and a 22% rise in cloud prices.

According to a blog post on Microsoft’s TechNet website, the increase reflects the company’s policy of harmonising pricing across the European Union.

Customers with existing volume licensing deals that have price protection on products they already use or have ordered will not be affected by the rise in fees for the duration of their contract.

Similarly, users of Office 365 will not see a price rise until the end of their subscription term, although such deals typically only run for 12 months anyway. Any new orders after 1 January, however, will be based on the higher prices.

The supplier claimed that “customers across the region buying in British pounds will still find our cloud offerings highly competitive”. Earlier this year, the firm reduced certain cloud charges by up to 17% following price cuts by cloud rival Amazon Web Services. Microsoft’s consumer products are not affected by the latest changes.

Microsoft is not the only tech supplier reconsidering prices in light of the fall in UK currency value since the Brexit vote.

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Analyst firm 451 Research has predicted UK-based public cloud users will pay thousands of pounds more in 2016 than in the previous year for the same quantity of compute resources. It said the cost of running a sample web application will now set users back £1,750 more than before the Brexit vote.

Dell has also increased prices as a result of the fall in sterling, and Hewlett Packard Enterprise has said it is constantly reviewing prices as the currency stumbles.

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