Microsoft Australia increases Azure cloud pricing

Commercial online services will face an eight per cent price increase

Microsoft Australia will increase Azure prices by eight per cent as of 1 January 2019, according to an email sent to local partners and seen by ARN.

This is not unexpected as Microsoft had already announced similar changes in New Zealand, which saw prices increase nine per cent from 1 December, as reported by sister publication Reseller News.

At the time, ARN contacted Microsoft, it said it had not increased prices in Australia but regularly assesses the market to ensure global alignment.

Now, a spokesperson for Microsoft has told ARN that the newly increased pricing will not apply to consumer software or consumer cloud services.

"Starting 1 January 2019, Australian dollar prices for commercial online services, including Azure, will increase by eight per cent to more closely align to online services pricing in other markets," said the spokesperson. 

"Customers buying in Australian dollars will continue to find Microsoft cloud offerings highly competitive."

The changes will not affect existing orders under volume licensing agreements for products that are subject to price protection for business costumers, Microsoft said.

"However, prices for new product additions under such volume licensing agreements and purchases under new contracts will be as defined by the price list at the time of order," the spokesperson added.

According to Microsoft, this is the first price alignment it has done in Australia in the past three years.

It also stated that it offers the benefits of Australian dollar pricing and billing to Australia partners and customers to provide more stable and predictable pricing.

Microsoft also explained the changes are limited to cloud products only and for indirect sales where Microsoft products are sold through resellers, final prices and currency of sale will continue to be determined by reseller partners.

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