After the much talked about announcement from Microsoft in February about its plans to bring the UK pricing for it’s volume licensing programs into line with the Euro. The actual percentage increases for each of the volume licensing groups was published this week, with hosting providers being hit the worst with a huge 33.4% increase (as shown in the table below).
How will it effect prices?
Though the exact new prices will not be published by MS until 1st June, it is expected that new clients will see the prices for services such as Hosted Exchange 2010 increase in-line with these price hikes.
It is important to understand that the new pricing only effects new clients not already registered with a Microsoft Hosting Provider by the 15th June 2012, so clients already using Microsoft based Hosted Exchange, Hosted Desktops and Hosted SharePoint for example by this date will be un-affected, until 31st December 2012
What it does mean though is those businesses who have been considering moving to Hosted Exchange for example, should do so by the 15th June otherwise they are likely to see up to an estimated 30% increase in the final subscription prices from all providers.
Why have Microsoft done this?
Microsoft is looking to standardise its pricing across Europe to take into account exchange rate fluctuations, though many believe they have been under pressure from partners in the Euro-zone countries to do this in order to reduce the perceived pricing gap between them and partners in the UK.
What is Cloud4 doing with prices?
Like all providers Cloud4 will be affected by the increase but its across the board and will impact on everybody. We will wait until the final prices are published by Microsoft on the 1st of June before making any changes. Though we do expect to be increasing our prices our clients will certainly not see the same levels that have been brought through by Microsoft. We would expect many of the other major providers to be doing the same if not immediately, not long after July 1st!
What our clients and potential clients can always be assured of though is what ever the market price, Cloud4 will always be at the competitive edge and continue to provide more free features within the price than just about any other provider.
The best advice we can give to potential clients looking to adopt any of our hosted services, is to do it before the 15th June 2012 to lock in the current prices.