Microsoft’s 25 Percent Licensing Fee Rise From June 1 Won’t Affect the Public Sector

Government escapes price rise that take effect on July 1.

Three-year Public Sector Agreement and licensing fee rises won’t affect government

The new came from The Register, as the price rise begins from July 1 due to the Public Sector Agreement (PSA) 12 framework

MIcrosoft gave UK resellers and customers a preview of the new pricing structure this week, beginning on the first day of July. The reason prices are rising more than a third is due to aligning prices with the Euro.

The Register saw a note sent to customers and resellers. In it, Microsoft confirmed Enterprise Agreements are rising by about 25 percent. Select Plus deals will rise by 24 percent. On average price for corporate government customers, excluding those in education, will rise by 29 percent.

Short notice, big implications

The move affects prices of products bought in bulk by companies. Microsoft’s price realignment came following complaints that Microsoft was losing money to the UK, due to the lower valuation of the sterling. Microsoft said it was establishing consistent price across regions for volume licensing.

The price changes are subject to changes in the economy that could affect the currencies before the July 1 date. One dealer said during the last change that Microsoft gave dealers three months notice, rather than a month. Microsoft’s fiscal 2012 ends in June, where the company is expected to have an increase in business.

It’ll be interesting to see fiscal 2013, where the Windows 8 sales numbers should shows the OSs popularity.

Microsoft large account reseller manager told The Register in a call that public sector customers would not see a rise, as the price to align with the EU will be offset. The Cabinet Office lifted a six-month moratorium on Microsoft purchases in the National Health Service last November, after settling on a discount of 16 percent.

Sources said Microsoft did not want to upset the Cabinet Office in times of austerity. Speaking to The Register said Microsoft and the Cabinet Office will provide an update regarding pricing and licensing for the UK government, to replace to the PSA09 framework – which the NHS agreed the 16 percent discount on – that remains in place until June 30. A Cabinet Office spokeswoman echoed Microsoft’s statement.


Published: Friday, May 4th, 2012 Last Modified: May 4, 2012

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