Feeds

Eurozone death spiral forces Microsoft to ease UK licensing price hike

Somewhat smaller pillow for Brit customers to bite

The Essential Guide to IT Transformation

Microsoft has confirmed that the pending price hike on volume licensing will not be as steep as the initial preview indicated due to the weakening of the Euro currency in recent weeks.

At the start of last month, Redmond said it expected UK biz customers would pay between 7.5 per cent and 33.5 per cent more for software licensing programmes (an average rise of 29 per cent) when it aligns EU pricing to the Euro from 1 July.

But only this week, partners revealed they were expecting further price moves due to the economic instability across Europe amid fears of Greece defaulting on its bailout conditions and exiting the single currency.

A Microsoft mouthpiece today confirmed, "we have made additional minor adjustments to UK prices that factor in recent exchange rates. We are now able to make smaller price changes than those previewed a month ago.

The final UK list price will now increase by between 1.7 per cent and 25.9 per cent depending on the licensing programme chosen.

The Reg can reveal Open Classic licenses will rise by 1.7 per cent rather than the 7.5 per initially previewed. Open Value/ Subscriptions, SPLA and ISV corporate licenses will go up by 25.9 per cent rather than 33.4 per cent.

Select/ Select Plus corporate licenses will climb 17.7 per cent instead of 24.6 per cent and Enterprise Agreements/ Subscriptions will go up by 18.7 per cent rather than 26.7 per cent.

"Moving forward our goal is to maintain price consistency across Europe, while balancing it with our partners' requirements for pricing stability," a Microsoft bod added, somewhat elliptically.

Sources claim Microsoft will actually lock the pricing for a year from 1 July but questioned why the vendor did not go one step further and align EU prices to the US.

"I can only come to one conclusion, that Microsoft is making more money out of European customers. Not one partner I've spoken buys the justification Microsoft has given that it wants pricing consistency across Europe," said one reseller partner.

As revealed yesterday, the public sector will pay just one per cent more for licenses from 1 July when PSA12 kicks in. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.