In October 2022, Microsoft announced that there will be global price changes for its products and services to match US dollar prices. This means that customers in different countries will be paying the same price for Microsoft products, regardless of their local currency and geographical location.
By 1st September 2023, such price adjustment takes effect in Australia.
Who will be affected by the price increase?
Customers purchasing with the Australian dollar will encounter a 9% hike for all software, such as Microsoft 365 licences, including Business Premium and Enterprise licencing. Government, education, and non-profit customers will also be affected.
Affected currencies are included below:
|Currency||Cloud Change %||On-Premises Change %|
|New Zealand Dollar||+7%||None|
As in the case of the adjustment for the Swiss Franc, prices can also decrease depending on foreign currency movements, local market scenarios, and inflation situations.
Which commercial licencing programs will be impacted?
Here is a list of all commercial licencing programs that will be impacted:
- Enterprise Agreement (Commercial, Government, and Enrolment for Education Solutions)
- Microsoft Customer Agreement for enterprise (MCA-E) – Applies to seat-based offers only
- CSP with MCA: applies to seat-based offers only (Commercial, Government, and Education Solutions)
- Legacy CSP Open Value (Commercial, Government, and Education Solutions)
- Open Value Subscription (Commercial, Government, and Education Solutions)
- Microsoft Products and Services Agreement (MPSA; Commercial, Government and Academic)
- Microsoft Online Services Portal (MOSP)
- MCA Online
- Select Plus
If you’re an existing ADITS client and are unsure whether this impacts your business licencing, talk to your dedicated Account Manager.
What are the exemptions to the price increase?
The following will not be affected by the pricing adjustments:
- Customers who purchase Azure through the Microsoft Customer Agreement (MCA) will not be affected. Azure is priced in US dollars worldwide and billed in local currency. The local currency calculations are done monthly, and the billing rates published on Azure.com.
- Business customers with “existing orders under commercial licensing agreements for products that are subject to price protection” or with locked enrolment prices. However, new product additions, new purchase contracts, upgrades, and renewals will be subject to price adjustments.
- Hardware, consumer software, and consumer cloud services
When does Microsoft make price adjustments?
After the price change on 1st September, price adjustments will happen semi-annually, every 1st February and 1st September.
Microsoft said it will strive to provide notice at least 30 days prior to the date when a price change takes effect. For the upcoming adjustments, Microsoft will make new local prices available starting on 1st August.
Please note, Microsoft price adjustments last happened on 1st January 2019 for cloud software.