Microsoft’s volume customers are bracing for a potentially huge price increase for software when the company adjusts European prices to bring them into line with the Euro.
Although Microsoft says most customers can expect a single digit percentage increase, volume clients are predicting a much larger increase as Microsoft looks to standardise its pricing to take into account exchange rate fluctuations.
The move has led to complaints from customers who believe the increase could push some companies over the brink and actually lead to an increase in software piracy.
Rumour had it that a price rise was going to happen, but the severity of it hasn’t yet been realised by partners
“I am slightly stunned as to the timing of their latest announcement and [wonder] if they really are making decisions that will not cause more harm to their company than good,” said IT support company NCI Technologies in a blog post spotted by The Register.
“Rumour had it that a price rise was going to happen, but the severity of it hasn’t yet been realised by partners – it is expected to mean a 20% to 35% rise in the cost of Microsoft licensing in the UK.”
The company said the increase would “speed up the process of UK businesses folding and promote piracy”.
Microsoft couldn’t tell us how far back it would be going in aligning the exchange rate, but five years ago the pound bought €1.5, compared to only €1.2 today.
A spokesman played down client fears, predicting modest increases in the UK, although other countries, such as Switzerland, would see prices fall.
“Final pricing won’t be determined until nearer the time, so any calculations made by partners are speculative,” a spokesperson said. “However, based on the exchange rate at end of January, we’d expect the large majority of UK customers to experience a modest, single digit price rise.”
But NCI wasn’t the only company expecting larger increases than painted by Microsoft.
“We estimate this to be around 20%, but exact pricing will be published by Microsoft on the 1st of June, 30 days prior to the change,” said Charles Barratt, software development manager at Equanet, the business to business channel of DSGi in a blog.
“Based on current exchange rates, this will mean an increase for customers billed in sterling. We estimate this to be around 20%, but exact pricing will be published by Microsoft on the 1st of June, 30 days prior to the change.
The price rise is planned to take effect on 1 July and are expected to affect Open, Select and Select Plus licence agreements.
Read more: Anger over Microsoft price hike for volume clients | Enterprise | News | PC Pro http://www.pcpro.co.uk/news/enterprise/372856/anger-over-microsoft-price-hike-for-volume-clients#ixzz1qtu7UgP2