After some rumors Microsoft finally now officially announced an upcoming exchange rate adjustment concerning pricing on global cloud products as of April 1, 2023, and TD SYNNEX wanted to share more information, timing, and context. We are communicating this change to you now so that you have time to prepare.
Microsoft motivates this change with the fact the currencies globally have been impacted differently by the macroeconomic environment, which also affected their exchange rate compared to the US dollar. For a sustained period, Microsoft had deferred pricing adjustments based on such currency fluctuations, but as of April 1, 2023, Microsoft is realigning Cloud pricing globally.
This means we will be updating local currency cloud pricing in EUR, GBP, SEK, NOK and DKK based on foreign currency fluctuations compared to the US dollar (USD) which results in a better price harmonization for the Microsoft cloud products across the globe. This will ensure that customers worldwide have more closely aligned pricing compared to the USD rate.
Note that customers who license Azure under a Microsoft Customer Agreement on New Commerce have pricing in US dollars worldwide and will not be affected by the local currency-based price changes.
Starting April 1, 2023, the following adjustment will be effective for Microsoft Cloud services:
- British Pound (GBP) prices will adjust +9%
- Danish Krone (DKK), Euro (EUR) and Norwegian Krone (NOK),
prices will adjust +11% - Swedish Krona (SEK) prices will adjust +15%
These adjustments will not apply on existing orders under licensing agreements for products that are subject to price protection. However, prices for new product additions under such licensing agreements and purchases under new contracts will be as defined by the pricelist at the time of order.
Moving forward, Microsoft will establish a centralized process in which currency fluctuations and potential pricing adjustments relative to the USD will be assessed twice a year. This simplified structure will provide better transparency and predictability for customers and partners no matter where they are based. It will also move to a consistent pricing model that is the most common in our industry.
Please do not blog or post this information on websites or social media sites. Instead, Microsoft have provided a FAQ document, you can find it when clicking the button below.
We at TD SYNNEX are here to help you. If you have any questions you can e-mail us on here:
Denmark - Cloudsoftware.dk@tdsynnex.com
See Microsoft FAQ document here