Although price increases on products are not uncommon, in IT we're used to prices staying level or going down. Unfortunately for businesses in the UK, Computer World is reporting that Microsoft has to increase the costs of their products by up to 30%.
The increase is due to differences in currency between the UK and the EU, and Microsoft says that they are needed to bring the UK in line with the rest of the continent. Small businesses that purchase through partners can expect a modest increase of roughly 8%, while enterprise agreements are expected to jump by up to a third. The new pricing goes into effect on all new purchases signed after July 1st, giving organizations a chance to lock in reduced pricing before then.
The question is whether companies will blindly pay the increased prices or whether they'll explore alternatives like Google Apps. We wouldn't be surprised to see Google's sales team deployed in force to try and lure customers away from Microsoft.
The company currently has no plans on increasing consumer prices and therefore the cost should remain stable to end users.