Microsoft is to increase its prices by as much as 22% in the UK because of sterling’s recent decline, a rise that is likely to affect thousands of businesses and could cost the Governments tens of millions of pounds.
The software giant is the latest big-name company to force through a post-referendum price rise, saying the move would “harmonise” its prices across Europe.
The value of sterling against the dollar, in which Microsoft books its revenues, has fallen by approximately 18% since the EU referendum on June 23rd.
Costs for Microsoft enterprise customers will increase by 13% for computer software and 22% for so-called online cloud services, where the company hosts a customer’s data in a virtual storage centre.
Microsoft is one of the biggest sellers of business software in the UK, led by its suite of Office programs such as Word, Powerpoint and Outlook. Its cloud service, Azure, sells access to vast computing power and is used by customers including the Ministry of Defence.
The price rise, which comes into effect at the start of next year, could cost the Government tens of millions of pounds a year.
The price rise will only apply to new purchases, rather than ongoing contracts, and Microsoft said it would not increase prices for consumers.
However, the rise is likely to deal a blow to businesses, which may have to raise IT budgets or sacrifice other projects in order to pay for the increased charges.
If you are concerned about how this might affect you or have any additional questions about the price rise please do not hesitate to contact us on 03333 22 11 00.