How will the Microsoft licensing fee increases impact your business?

Microsoft have recently announced that their pricing structure is undergoing a major overhaul in 2023, with prices set to rise by 9% in April of this year. These changes will have an impact on all user and software licenses, so it’s imperative that you understand the changes before they occur, in order to make the best decision for your business in coming month.

If your business currently uses Microsoft products and services, then continue reading to learn more about the license fee changes, why they’re occurring, and how you can ensure your business is getting the most out of its MS licenses.

Why are Microsoft prices increasing?

The Microsoft price changes will primarily affect customers in the UK, Denmark, Sweden, Norway, and European countries. The price changes will be reflected as such:

• GBP: +9%
• DKK, EUR, and NOK: +11%
• SEK: +15%

Microsoft have stated that these new license and product fees will reflect global exchange rates as opposed to a fixed rate, labelling the move as ‘consistent global pricing’. Prices outside of the US will be based upon the local currency’s exchange rate with the US dollar - and exchange rate prices will be reviewed twice yearly.

The primary reason for the MS price changes is global currency fluctuation, with currencies globally impacted by the macroeconomic environment. For an extended period, Microsoft have refrained from introducing pricing adjustments based on currency exchange rates, however this is all set to change on the 9^th with the remodelled fee model.

Microsoft have asserted that the new pricing model enables customers to purchase licenses at a rate more closely aligned with the US market - ensuring regularity between currencies.

How to ensure your business still benefits.

The best way to counter growing IT costs for your business is to carefully audit and assess which services and products are really benefitting your business’ tech trajectory. Paying excess for services you don’t fully use and exploit is an unnecessary budget burden, and one to be avoided.

As highlighted by Ash Haind, our Head of Office 365, ‘it’s crucial to keep in mind when purchasing add-on services for Microsoft, that these tools are intended to supplement and improve the work of your team, rather than replace it. By selecting the appropriate add-on services, you can provide your team with the necessary tools to work more efficiently, collaborate more effectively, and accomplish their objectives with greater ease.’

The main priority in establishing a strong array of products and services in your tech arsenal, is identifying what it is that will best help your employees carry out their daily duties efficiently and easily. Undoubtably newer products are designed with ease and efficiency in mind, however, it’s essential to know if they are truly a good fit for your team.

A primary example of a recently remodelled Microsoft Service is the newly released Microsoft Teams Premium, a gated version of the Teams app that incorporates new features such as AI intelligent meetings and enhanced reporting capabilities. It’s important to weigh up whether your employees will fully utilise the new features offered by MS Teams Premium before taking the leap and investing in the new service.

Navigating Microsoft Licensing in 2023

If you’re unsure as to whether the new licenses premium versions of apps such as Teams will benefit your business and employees, then your IT services partner should be able to audit and recommend the best products to fit your needs.

At Fitzrovia IT we assist our clients in navigating and implementing Microsoft Services to enhance their business processes. Having been Certified Microsoft Service Partners for a number of years, our team can offer specialised migration support every step of the way.

Contact one of our expert team today to discuss how your business can make cost saving on Microsoft services, and establish which products will best enhance your business’ growth and profitability.