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April 2023 price increase for Microsoft

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Beginning on April 1st, 2023, Microsoft will raise all of their services by 9%.

In case you weren’t aware, Microsoft will raise prices by 9% on April 1st, 2023. Not to be confused with the NCE and Microsoft 365 pricing increases from last year, this will impact ALL Microsoft products/services.

As many of you may know, Microsoft changed its licencing strategy to the New Commerce Experience in March 2021. (NCE). On April 1st, there will be an additional increase to the NCE’s ongoing improvements.

Recall that the following licence types were impacted by the NCE price increases:

  • Microsoft 365 Business Basic (20% Increase)
  • Microsoft 365 Business Premium (10% Increase)
  • Office 365 E1 (25% Increase)
  • Office 365 E3 (15% Increase)
  • Office 365 E5 (8.5% Increase)
  • Microsoft 365 E3 (12.5% Increase)

Microsoft will review local currency pricing in the future as part of a normal twice-yearly cadence, accounting for currency swings in relation to the USD. Customers everywhere will benefit from enhanced transparency and predictability, and the price structure will change to one that is most typical in the sector.

Microsoft remains steadfastly devoted to the success of its customers and partners, and the pricing of the Microsoft Cloud remains competitive. Microsoft will keep making investments in order to help customers innovate, consolidate and reduce operating costs, improve company performance and efficiency, and provide the groundwork for a reliable security approach that clients all over the world have come to rely on.


Why are Microsoft making these changes?

For several months, Microsoft customers and partners have been able to acquire the company’s products for up to 40% less than the equivalent global US dollar prices. With these adjustments, regional costs will be more closely aligned with US pricing, with potential increases or decreases based on local currency swings.

What is the change being made?

Microsoft will start using a clearer, more transparent cadence in 2023 to improve pricing harmonisation for the Commercial Cloud across geographies. Subject to market conditions, partners and customers who price in local currencies will be able to prepare for semi-annual price alignment to USD and global parity.

Why is Microsoft changing local currency pricing at a semi-annual cadence?

Microsoft evaluates the effects of its regional pricing for software and online services on a regular basis to make sure there is consistency across areas. By switching to a semi-annual cycle, we can provide better clarity to our consumers regarding the timing of price changes and guarantee a straightforward and uniform pricing strategy.

Does Microsoft decrease prices?

Yes, Microsoft has just lowered prices in Taiwan and New Zealand. Prices will be adjusted up or down as part of the new semi-annual cadence to maintain worldwide pricing uniformity.

Source: Microsoft Price Increase – April 2023 | Circle

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