In line with their previous announcements, Microsoft has started aligning its prices globally for the purpose of making prices in other currencies consistent with US dollar prices.
For Australian businesses, this means there will be a price increase happening on 1st September 2023.
How much are Microsoft prices going up or down?
Actual new prices are scheduled to be posted by 1st August, but overall AUD prices will increase by 9%. Following are this round’s price changes for affected currencies:
| Currency | PRICE % CHANGE | |
| for Cloud Software | for On-Premises Software | |
| Australian Dollar | +9% | +9% |
| New Zealand Dollar | +7% | None |
| Canadian Dollar | +6% | +6% |
| Swiss Franc | -9% | None |
As shown, prices can either go up or down or have no changes at all. It will all depend on currency fluctuations, inflation, macro-economic events, and business situations.
Which software licences will be affected?
The price change will impact all commercial customers who purchase Microsoft software, including Microsoft 365, including licences for Business Premium and Enterprise – for all sectors including commercial, government, non-profit, or education.
Specifically, these commercial licencing programs will be covered in this September’s price increase:
| Enterprise Agreement for Commercial, Government, and Enrolment for Education Solutions | Microsoft Customer Agreement for enterprise (MCA-E), seat-based offers only | CSP with MCA for seat-based offers only, for Commercial, Government, and Education Solutions |
| Legacy CSP Open Value for Commercial, Government, and Education Solutions | Open Value Subscription for Commercial, Government, and Education Solutions | Microsoft Products and Services Agreement (MPSA for Commercial, Government and Academic |
| Microsoft Online Services Portal (MOSP) | MCA Online | Select Plus |
Are there products or customers not included in the price adjustments?
The upcoming round of price changes will not affect the following:
- Azure, if bought via the Microsoft Customer Agreement or MCA (Azure is priced in US dollars and billed in local currency)
- Business customers with current orders under commercial licensing agreements; for products that have price protection, but excluding new product additions, new purchase contracts, upgrades, and renewals
- Microsoft hardware, consumer software, and consumer cloud services
When do Microsoft prices change?
The last price adjustments for AUD were done before 2008 for OnPrem software and on 1st January 2019 for Cloud software. After the initial price adjustment on 1st September 2023, there will be semi-annual price evaluations and any adjustments will happen every 1st February and 1st September.
How can we find out about succeeding price adjustments?
Microsoft have advised they will provide advanced notice at least 30 days prior to any price change, or after pricing conversion rates are locked and prices are finalised. Microsoft also comes out with pricelists that are published monthly.
Should I transfer my licencing to the New Commerce Experience (NCE) pricing?
While NCE would allow you to lock in lower pricing initially, it may not be suitable for every business. You would still be subject to the new pricing at the time of renewal or if you add any additional licences post-September 1st.
Before making any changes to your licencing/subscriptions, we strongly recommend talking to your IT provider, or if you’re an existing Future IT Services customer, talking to your Account Manager. They will be able to help you assess your needs and advise which licencing is right for your business.
Businesses planning to make a purchase may still have time to do so, whether for a new subscription, additions, or an upgrade.
We understand that this may be a challenging time for affected Microsoft users, but Future IT Services is here to help you through it. Please do not hesitate to contact us if you have any questions or to get more information about the price adjustments.