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Microsoft caps volume license price hike... at 26%

By Stewart Mitchell

Posted on 1 Jun 2012 at 10:53

Microsoft has said UK volume licensing price increases will be lower than expected, but costs could still go up by 25.9% following adjustments for currency fluctuations.

Volume license customers expressed anger when Microsoft outlined the price hike back in February, with fears that the proposed increases would cause companies to fold.

“The final UK price list, effective July 1st, shows that volume licensing prices charged to partners will now increase by between 1.7% and 25.9%, depending on the volume licensing program selected,” the company said in a statement.

We are now able to make smaller price changes than those previewed a month ago

Although the company refused to supply actual prices because “the Price List itself goes to partners so that they continue to determine the final price and currency of sale to customers”.

Despite the sharp increase for some volume customers, the company painted the changes in a good light, saying the situation could have been much worse without exchange rate turbulence in the Eurozone.

"On 1 May we published a preliminary 60 day price preview to give early guidance so partners could prepare for these changes,” the company said. “This indicated that from 1 July prices in the UK were likely to rise by between 7.5% and 33.5%.

“Since then, 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.”

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User comments

I wonder if Linux vendors will try and use this situation to boost adoption?

By tech3475 on 1 Jun 2012

This is what happens with devaluation

When the Eurosceptic Tories tell you being out of the Euro means the UK can devalue, they forget to add that devaluation makes everything imported or priced in dollars more expensive. Forget 3% inflation - this 25% price increase is more like the change in the pound's value. You can't blame Microsoft for this, blame Cameron because the pound has gone down against most major currencies - USD, EUR, CHF etc.

By SwissMac on 1 Jun 2012

@swissmac eh?

sorry swissmac I'm a bit confused here last year I could £1 would get me 1.1 euros and now it gets me 1.2 Euros. Surely this means the pound is quite strong against the euro and imported goods will be cheaper. Don't know much about the dollar rate as haven't brought any for years but a quick peek tells me at $1.5 for the pound is about the same as it ever is. as for devaluation, it is a last resort but one option that Greece does not have. But one which we have not taken (unless you count QE as a form of devaluation). So I don't think you can attribute this cost rise on the strength of the pound.

By SimonCorlett on 1 Jun 2012

@SwissMac

Or Blame gormless Gordon for blowing all the money and leaving a credit card bill we can barely pay.

By cheysuli on 1 Jun 2012

Party politics drivel

Today, 1st June 2012, £1 is worth approx $1.54. On the 1st June 2009 £1 was worth approx $1.65. I make that about a 7% drop over three years. How does a 7% currency fluctuation justify a 26% increase? Because Osborne was a 'Bullingdon Boy'? Or maybe it's Cameron's 'Chillaxing' that caused it?

By Mr_John_T on 1 Jun 2012

Microsoft caps volume license price hike... at 26% Read more: Microsoft caps volume license price hike... at 26% | News | PC Pro http://www.pcpro.co.uk/news/374968/microsoft-caps-volume-license-price

What about a percentage to cover spiraling fuel costs-After all a wheelie bin sized box to hold a windows install disc or flash drive and all the protective packaging must be very heavy

By invalidscreenname on 1 Jun 2012

I'm not sure what is stranger.

Swissmac defending Microsoft or his tenuous reasoning for it?

Either way, I need to have a sit down!

By JStairmand on 1 Jun 2012

Microsoft caps volume license price hike... at 26% Read more: Microsoft caps volume license price hike... at 26% | News | PC Pro http://www.pcpro.co.uk/news/374968/microsoft-caps-volume-license-price

What about a percentage to cover spiraling fuel costs-After all a wheelie bin sized box to hold a windows install disc or flash drive and all the protective packaging must be very heavy

By invalidscreenname on 1 Jun 2012

Price rise reason

MS are raising their prices in the UK to bring UK prices closer in line to the rest of Europe as European dealers were losing sales to UK ones as the UK dealers could offer better prices.

By Simon_Jones_RWC on 1 Jun 2012

Profit Boost

Or maybe I should do what others do. register a us e-mail address, buy product in dollars and download and install. May be more ethical than these monstruous price rises at a time when they are least affordable. No I'll just use the free open source alternatives, which I am becoming more and more fond of.

By Manuel on 1 Jun 2012