In an unprecedented – and frankly refreshing – turn of events, UK businesses can potentially look forward to reduced costs in their Microsoft licensing spend as the company rolls out a price decrease for its commercial cloud services.
Effective from February 1, 2025, this strategic price reduction aligns with Microsoft’s commitment to align global price levels to the Dollar and adapt to foreign exchange rate fluctuations.
For UK customers, this means a notable decrease of between 5 and 6 percent in the costs of licensing Microsoft Commercial Cloud services.
This adjustment specifically targets licensing transacted in British Pound, ensuring that UK businesses benefit directly from this initiative. In contrast, Brazilian businesses face the prospect of a 12% increase.
What Microsoft Licensing Is Affected?
The upcoming price reduction applies to Microsoft Commercial Cloud licences. These are integral to businesses utilising cloud platforms for enhancing their operational efficiency and innovation capacity.
The affected licences include (but are not limited to) Microsoft 365, Dynamics 365, and Azure services that are billed through Commercial agreements.
It is worth noting that the benefit will only be felt for licences paid annually upfront – ‘monthly-annual’ Microsoft licensing can expect a further price increase in April.
Implications For Businesses
For existing Microsoft customers, this price reduction presents an opportunity to assess their current subscriptions and – if they’re in the position to pay upfront – potentially save sizable sums on licensing.
As an example, a 20-person organisation where all staff use a Microsoft Business Standard licence could already save just under £500 per year by purchasing licensing on an annual basis rather than monthly. As of February, that benefit rises to around £620 per year.
For larger organisations, or those with more expensive licence types, these savings could be far more significant.
New customers stand to gain as well, as they can now access Microsoft’s robust cloud offerings at a more competitive price point right from the start.
Making A Strategic Advantage
As the February 2025 implementation date approaches, it is advisable for Microsoft customers to consult with their IT Â service providers to understand fully how the price adjustment impacts their specific contracts and usage. Planning ahead will enable businesses to maximise the benefits of this pricing change.
Akita’s procurement department includes licensing experts who stand ready to help organisations review their Microsoft licensing against their requirements. In turn they’ll be able to indicate how potential savings can be made.
To discuss reviewing your organisation’s Microsoft licensing with Akita, please get in touch:
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