Microsoft Raise Prices – Azure Price Hike Announcement

Microsoft announce a 22% pricing increase for Enterprise Cloud, including Azure for UK customers

Azure price increase of 22% and on-premise enterprise software by 13% from 1st January 2017

Azure Price Hike – Due to the fall in the value of Sterling against the US$, Microsoft have announced a pricing increase of 22% for Azure customers effective from 1st January 2017. This reflects similar moves from other major US organisations.

In theory if the GBP slides further against the US$ Microsoft could increase prices further, impacting Azure customers.

Cloud9 has a different pricing structure from Public Cloud Services such as Microsoft Azure and AWS, the key areas of significance to our customers are:

  • Pricing is fixed for the term, based on key components;CPU, RAM, Storage, Support, Licensing
  • With Cloud9 you get to Accept/Fail the environment based on
  • During 2016 Azure has had more outages than Cloud9 has had since the first iteration in 2014
  • Cloud9 is a managed cloud platform and can be deployed with System Centre 2016 to create a Private Hybrid Cloud on shared resources

 

“The stated reason for this increase is down to the drop in Sterling, however an interesting point not highlighted in the technology Media is that Microsoft sales targets and group financials are ultimately in US$, so as a UK sales team, you either have to sell 22% more or charge 22% more. In reality, the actual UK associated costs (data center, power, staff, hardware) would not have increased by such as significant volume, so this in reality is about keeping the Micrsoft share-price propped up”
Michael Owen, Head of Sales; Cloud9enterprise

The Microsoft price increase – Azure Price Hike has been featured in and number of online publications including:

 

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