Microsoft raises prices in UK by a third, future hikes likely

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.

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This is a load of crap. US companies always take the **** with currency conversion. If a product is lets say $399, just change the currency symbol and job done £399. $399 is something like £247 and I do realise that those comanies have operational costs in the UK as well but let's face it, manufacturing and design doesn't happen over here.

'Prices for enterprise agreement licences will increase by 25.7 percent for on-premise and 21 percent for Office 365, Select or Select Plus Agreement licences will increase by 24.6 percent, and Open Value will increase by 33.5 percent.

According to a Microsoft spokesperson the changes will not apply to Windows, Office, or other products sold to consumers through retailers or on pre-installed PCs. Academic on-premise pricing will continue to be heavily discounted, and the public sector will remain unaffected.'

from the link

I really hope there is a dramatic shift away from Microsoft products as a result of this.

Wasn't amiga and other systems from the day created in UK?

UK need to flex their own IT muscle and start competing against these foreigners that they've relied upon for too long.

You've got some smarties across the pond, do something with them.

News just announced, UK retirement age has been eradicated and everyone is now expected to work till there dying minutes. In all seriousness, the price of everything in this country just keeps going up. Richer getting richer, poorer getting poorer.

Only good thing to come from this is potentially smaller businesses adopting open-source software for their needs.

ShMaunder said,
News just announced, UK retirement age has been eradicated and everyone is now expected to work till there dying minutes.

That makes me sad. In Canada, we just raised retirement age to 67 (prev 65).
Now our educated young workforce will have to wait even longer for traditional employers to hire them.

So England was smart to stay out of a currency that was apparently doomed to fail from the start, and we have a price hike to bring it inline with them Muppets. We should get MS seal of blessed forsight for that. Why should our businesses have pay just cus some countrys in EU can't be assed handle there finances properly.

Please note, this is on volume license, I believe it does not affect retail pricing and stuff like MSDN/TechNet subs unless you get those under VL too.

thommcg said,
Couldn't have just reduced EU prices?... Nah

There's a case going through Australia right now that I hope might have some global effects. The government there wants to know why soft goods cost so much down under, by comparison to lets say the USA (in cases where there is 0 reason for pricing differences, for example, why does office cost more than twice what it does in the USA, or why is an album on iTunes marked up so much)

Sraf said,

There's a case going through Australia right now that I hope might have some global effects. The government there wants to know why soft goods cost so much down under, by comparison to lets say the USA (in cases where there is 0 reason for pricing differences, for example, why does office cost more than twice what it does in the USA, or why is an album on iTunes marked up so much)

It costs a lot of money to ship data through the intertubes!

Sraf said,

There's a case going through Australia right now that I hope might have some global effects. The government there wants to know why soft goods cost so much down under, by comparison to lets say the USA (in cases where there is 0 reason for pricing differences, for example, why does office cost more than twice what it does in the USA, or why is an album on iTunes marked up so much)

It's the "Foreigner" tax. Any country that doesn't use USD gets everything more expensive. Except Russia.

rpsgc said,

It's the "Foreigner" tax. Any country that doesn't use USD gets everything more expensive. Except Russia.


This.

Also, in Soviet Russia software buys you!

GS:mac

cost is a massive contribution towards piracy.

When OSX release OS's at less than £30, it puts microsoft to Shame.

barteh said,
cost is a massive contribution towards piracy.

When OSX release OS's at less than £30, it puts microsoft to Shame.

When you don't know the difference between a hardware vendor and a software vendor, it puts you to shame

Sraf said,

When you don't know the difference between a hardware vendor and a software vendor, it puts you to shame

When you don't know that Microsoft produce hardware and Apple produce software it puts you to shame.

Sraf said,

When you don't know the difference between a hardware vendor and a software vendor, it puts you to shame

Exactly Apple doesn't care of People who own Mac's Pirate OS X.

Depicus said,

When you don't know that Microsoft produce hardware and Apple produce software it puts you to shame.

Yes they each produce software and hardware, but MS' profits come from the software, and Apple's profits come from the hardware. Apple does not need to price OSX very extravagantly because they rely on the sale of the only hardware it runs on for profit.

MS on the other hand sells software, and in the case that they sell hardware, money is usually made via the sale of software for that hardware (though not in all cases, such as their mice and keyboards)

The core competencies of these two companies, and where they make their money determines how things are priced, and since MS does not exclusively make their own computers on which only their own OS will run*, they have to charge more for the software that others will use, where Apple can build dev costs and profit into their cost of hardware

*ignoring the XBox

Sraf said,

Yes they each produce software and hardware, but MS' profits come from the software, and Apple's profits come from the hardware. Apple does not need to price OSX very extravagantly because they rely on the sale of the only hardware it runs on for profit.

MS on the other hand sells software, and in the case that they sell hardware, money is usually made via the sale of software for that hardware (though not in all cases, such as their mice and keyboards)

The core competencies of these two companies, and where they make their money determines how things are priced, and since MS does not exclusively make their own computers on which only their own OS will run*, they have to charge more for the software that others will use, where Apple can build dev costs and profit into their cost of hardware

*ignoring the XBox

totally agree for once!! one thing tho is even with the xbox they make no money on the sale of the hardware.. its the sale of their games and their partners games that they make money on..

Lachlan said,

totally agree for once!! one thing tho is even with the xbox they make no money on the sale of the hardware.. its the sale of their games and their partners games that they make money on..

Indeed, I just didn't want to get that deep into it

Vice said,
I'm sure this will increase piracy.
.
I think many pirates really don't care wether they should pay $5 or $200.

Cøi said,
.
I think many pirates really don't care wether they should pay $5 or $200.

they cant get approved for credit cards so its hard to make online purchases I guess..