Microsoft announces 6% rise for onprem and online products

In recent news, Microsoft has decided to increase its prices by a whopping 6% in India, leaving consumers scratching their heads and questioning the rationale behind such a significant hike. This move may ignite a wave of dissatisfaction among small customers specially who have long been loyal to Microsoft products.

This price hike by Microsoft might benefit their competitors like Google, as many small customers may switch to Google workspace, giving an advantage to the users to use familier Gmail interface.

Here\’s the Microsoft announcement:

Microsoft India is announcing Indian rupee pricelist changes to harmonize its prices for commercial software and online services between India and the Asian region, effective February 1, 2024. Microsoft periodically assesses the impact of its local pricing for software products and online services to ensure there is reasonable alignment across regions and this change is an outcome of this assessment. 

Starting February 1, 2024, Indian rupee prices for commercial on-premises software will increase by 6%, online services will also increase by 6% to realign close to prevailing USD pricing levels in the Asian region. On Microsoft.com, revised Indian rupee prices for direct sales to India based customers for a select set of online services such as Microsoft 365, and Dynamics 365 will be reflected as of February 1, 2024.  For business customers, these changes will not affect existing orders under volume licensing agreements for products that are subject to price protection. However, prices for new product additions under such volume licensing agreements and purchases under new contracts will be as defined by the pricelist at the time of order. Customers across India buying online services in Indian rupee will continue to find Microsoft cloud offerings highly competitive.

For indirect sales where Microsoft products are sold through resellers, final prices and currency of sale will continue to be determined by resellers.

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