Big Shocker: Microsoft is once again raising prices.
Starting July 1, Microsoft’s raising substantially the prices it will be charging its UK business customers for software and services. Those clients with Enterprise Agreements (EAs) have seen a 25.7% price increase. Clients that contract with Microsoft under the Select or the Select Plus licensing model have seen a 24.6% price increase. Those clients that utilize Microsoft’s Office 365 cloud based offering have seen a 21% price increase. Those clients who have a Service Provider Licensing Agreement (SPLA), or an Open Value or an Independent Software Vendor (ISV) agreement, have seen the biggest increase, prices up 33.5%! Even Open License customers have seen a 7% price increase.
While not at all surprising to see Microsoft continue to raise prices, the amount of this most recent increase is alarming, and when compared with a maturing competitive market, the cost to value delta seems to be getting bigger, which indicates Microsoft is not taking the threats of cloud based platforms like Google seriously. With some very high profile wins, Google seems to be at the point of offering a serious alternative to Microsoft when it comes to cloud based office productivity with email, word processing, and data sharing applications.
With continued high profile losses against Google, especially when compared to Microsoft’s Office 365 offering, it’s a wonder how clients continue to let Microsoft get away with monopolistic pricing control in the face of rapidly changing markets. Growing number of users are accessing email and basic office productivity applications from mobile devices that run iOS, or Android, or operating systems other than Windows. With the continuing commercialization of IT, and the “Bring Your Own Device (BYOD)” movement, it appears that Microsoft may be positioning to claw back some losses to innovators and enthusiasts with subsidies from the laggards and skeptics. To minimize price risk exposure to Microsoft, all clients are encouraged to strongly consider competitive offerings in all software titles. In areas where Microsoft has had a strong perceived advantage, the market has been changing quickly, so don’t rely on analysis that was done a year ago. Check back often for the latest information.
Anyone in the UK who is currently concerned about the future with Microsoft is encouraged to contact us to discuss your options.
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