Microsoft To Change Local Currency Pricing in 2023

Microsoft To Change Local Currency Pricing in 2023

To become more agile and maintain global pricing alignment, beginning in 2023, Microsoft will implement a more defined and transparent cadence to provide better Microsoft cloud pricing alignment across regions. Customers and partners with pricing in the 16 local currencies will be able to plan for pricing alignment to US dollar and global parity at semiannual intervals, subject to market conditions.

Source:  Partner FAQ: Microsoft commercial pricing update.

 

Scope of Impact

  • Partners: All Microsoft Direct Bill Partners, Indirect Providers and Indirect Resellers
  • Products: All Microsoft products that are out of alignment to US dollar with prevailing market FX rates. Azure offerings sold through Microsoft Customer Agreement (MCA) are priced in USD globally and will not be impacted by the semiannual adjustments.
  • Geography: Worldwide, additional announcements in the coming weeks will detail the specific price changes within a given region

 

What Is Microsoft Planning To Do?

Starting 2023, Microsoft will be updating prices based on local currency fluctuations and other factors to ensure global consistency semiannually. This is the same process that exists today, but rather than occurring at any time of the year, Microsoft is providing more transparency and predictability by setting a semi-annual cadence, subject to market conditions. 

Please read the Partner FAQ: Microsoft commercial pricing update available in the Microsoft Partner Center, which will include the latest updates as they become available. 

 

How Will This Affect You?

Review this matrix to see if any of these scenarios apply to your organization.

If you: Then:
Do business in non-USD currency

Keep up-to-date with the latest information from Microsoft and prepare for the upcoming changes. Microsoft has stated it will provide partners with the standard 30-day price preview, when business conditions allow.

Have new customers

New customers may be subject to the pricing changes depending on when they sign up and when Microsoft begins the first pricing alignment. See local announcements that will become available in the coming weeks which detail the specific price changes within a given region.

Have customers with existing subscriptions

Subscriptions are already locked in with the prices specified in the contract for the remainder of the term.

Have customers on Azure

For CSP partners purchasing the legacy Azure PAYG offer, prices will be adjusted beginning the pricing alignment date. For Azure in New Commerce, pricing under Microsoft Customer Agreement (MCA) is set in USD globally and not impacted by the semiannual adjustments. Local billing will utilize the Azure monthly billing exchange rates found in the Azure calculator. 

For more specifics on Azure customers in volume licensing, please reference the local announcements.

Have government/public sector or not-for-profit customers?

Microsoft has taken a unified approach to price adjustments which will be equal for all categories of commercial licensing customers, including commercial, government/public sector, academic/education, and not-for-profit customers.

Are transacting via the Ingram Micro Cloud Marketplace

You do not need to make any changes to your systems. Our existing systems support all price changes from Microsoft.

 

How Can I Learn More?

Be sure to read the Microsoft Partner FAQ: Microsoft commercial pricing update. Microsoft will be updating this document as more information becomes available.
In terms of specific details, the FAQ states:

  • Microsoft will provide additional communications and region-specific details in the coming weeks on what will be changing in the first half of 2023.
  • Microsoft will follow existing policy and procedures to notify partners of price list changes.
  • When business conditions allow, Microsoft will provide partners with the standard 30-day price preview.

If you have any questions, please contact your Ingram Micro Cloud Account Manager.

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  • Category Platform & Product Updates

  • Written by Hailey Henry

  • Published on December 20, 2022

Hailey Henry

Hailey Henry , Director, Strategic Partnerships, Ingram Micro Cloud

Global partnerships leader responsible for the growth of Microsoft partnerships globally with ownership of driving the success of strategic multi-year agreements across all facets of the business.