You might’ve already heard the news that Microsoft is putting its prices up come September 1, 2023. The increase, impacting Australian, New Zealand, Canadian, and Swiss Microsoft customers, has been put in place to ensure greater pricing consistency globally in line with prices in US dollars. For Australia, the costs associated with Microsoft solutions in the cloud and on-premises, will go up by 9%. Here’s the official Microsoft announcement for your information. In this blog, I’ll explain how this change will affect Microsoft 365 and Azure customers.
No one likes a cost increase, but there’s no need to panic. I’ve put together this guide that outlines exactly what changes are being made, how it’ll affect your organisation, and how we can help you counteract increased Microsoft costs – despite the hike.
On your next renewal after the 1st of September 2023, your Microsoft 365 subscriptions will increase by 9%. This price rise impacts cloud and on-premises licensing costs for commercial, government, academic, and non-for-profit customers.
While government organisations and other Enterprise Agreement (EA) Microsoft customers will still be charged the increased rate through new licenses, some with locked prices for the duration of certain existing agreements will not. It depends on the exact agreement, but generally, Microsoft customers with an existing EA agreement will not be affected until their next renewal.
If you have an existing EA agreement with Microsoft and are unsure if the increases will apply to you or not, contact your Account Manager for more information.
If you’re currently billed monthly – you’ll see the increase reflected in your next monthly bill after the 1st of September 2023. Get in touch with us today to find out how you can lock in an annual rate before the price rise.
If you’re currently billed annually – you’ll see the increase reflected in your next annual bill after the 1st of September, 2023. Get in touch with us today to find out how you can lock in the best rate for the next 12 months with an early license renewal.
Here’s the breakdown for which licensing programs will be affected. All commercial cloud and on-premises services sold through the following agreements and programs will be affected:
Come September 1st 2023, customers purchasing Azure in AUD will see pricing increased to match what customers purchasing Azure in USD pay through Azure.com, and in volume licensing agreements.
| Azure Impact by Program | |
| Effective September 1, 2023 customers purchasing Azure in AUD will see pricing at levels similar to customers purchasing Azure in US dollar levels through Azure.com and in volume licensing agreements. | |
| Pay-As-You-Go Subscriptions on Azure.com | Customers purchasing Azure in AUD or NZD will see pricing at levels similar to customers purchasing Azure in other currencies such as the US dollar on Azure.com. |
| Legacy Azure in Cloud Solution Program (CSP) | Azure in Legacy CSP is impacted by the September 1, 2023 pricing adjustment. Azure in New Commerce CSP is in US dollars and is not impacted. |
| Azure in Microsoft Customer Agreement for Enterprise (MCA-E) | Azure in New Commerce through MCA-E, CSP and Microsoft Online will not be affected due to US dollar pricing with monthly updated billing FX rates. |
| Azure in Mid-term Enterprise Agreement (EA), EA Subscription (EAS), and Server and Cloud Enrolment (SCE) | Customers or partners who purchased Azure within an EA, EAS, or SCE agreement have price protection on currently offered Azure services and will receive the lower of their baseline price or the new market price. Customer or partners baseline price is the price at the beginning of their Azure agreement, or the price at which a new Azure service was made generally available. If the new market price is higher than customer’s baseline prices, customers will see an adjustment up to, but not above, their baseline prices. New Azure services will be priced at the then-current pricelist price. |
Data#3 is here to help you navigate the price rise with as little financial impact to your organisation as possible. We offer a range of services designed to optimise and minimise costs associated with Microsoft licensing, including:
Microsoft 365 Optimiser – this service is designed to ensure your Microsoft 365 subscriptions are optimised as much as possible for efficiency and cost-saving.
We’ve found that up to 56% of the average business’ Microsoft 365 licenses are inactive, underused, or unassigned – and potentially leaving a lot of money on the table.
Through our Microsoft 365 Optimiser service, we ensure your software is licenced, implemented, and managed correctly. By doing so, we help you uncover significant savings that may well counteract the price increase.
Cloud Optimiser – we’ve also found that many organisations struggle with managing cloud spend to keep within IT budgets. Our Cloud Optimiser service is designed to help you get the most out of your cloud spend.
It’s an all-in-one managed service that gives you a better understanding of your existing cloud services, provides visibility on consumption, and reduces unnecessary expenditure. By providing clarity on your usage and reducing unnecessary expenses, this service helps you uncover unclaimed savings.
Asset Management Services – need an all-encompassing service to consolidate, simplify, and optimise all your software licensing? Our Asset Management Services provide an easy way to manage all your software licensing contracts and renewals and ensure you’re getting the best deal possible on all your licensing investments.
Whether you need on-premises or hybrid cloud-based solutions, this service helps you gain control over your software assets.
Already working with Data#3? Contact your Account Manager for further information.
Not yet working with us but want to find out how we can help you save on your Microsoft costs? Get in touch with us today to find out more.