Microsoft hikes prices, blames brexit (enterprise)

[Belgarathian]

 

So as we all know, the UK through referendum voted to leave the EU. Since then the Pound has fallen against the Euro by approx. 15%. In response, as lot of manufacturers (Dell & Lenovo) have announced price increases for the UK. Now it's Microsoft's Turn. 

 

They've announced today that there will be up to a 22% increase in the price of enterprise software, support, and cloud based services. However, this will not effect any existing customers with price protected contracts. Ouch!

 

Previn's argument about the cost benefits of the macOS whole of life costs may end up becoming more prevalent if this continues... 

 

 

 

Source - http://arstechnica.com/business/2016/10/microsoft-jacks-up-prices-blames-brexit/

[vanished]

Welcome to Canada, we've been dealing with this for almost 2 years now...

[SansVarnic]

Yeah every time there is a major change in structure prices will change..... its a type of insurance for possible fallout to the economy until things smooth out.

Edited October 24, 2016 by SansVarnic

[Belgarathian]

3 minutes ago, Ryan_Vickers said:

Welcome to Canada, we've been dealing with this for almost 2 years now...

NZ has been relatively stable from what I've found... But 22% is enough to kill a business, particularly when a large % of enterprise $$ is spent on IT maintenance & management. 

 

Surely they'd have been better to price increase 22% across 3-5 years. 

[vanished]

32 minutes ago, Belgarathian said:

NZ has been relatively stable from what I've found... But 22% is enough to kill a business, particularly when a large % of enterprise $$ is spent on IT maintenance & management. 

 

Surely they'd have been better to price increase 22% across 3-5 years. 

Well then idk how we're even surviving if 22% is enough to kill a business... try more than 30%  

 

I don't think they'd ever drag out the increase since it could even recover by then (for their sake, I hope it does), and they would need to overcharge eventually to make up for the lost revenue during the ramp up.

[Curious Pineapple]

All hail KMS Tool

[Belgarathian]

1 hour ago, Ryan_Vickers said:

Well then idk how we're even surviving if 22% is enough to kill a business... try more than 30%  

 

I don't think they'd ever drag out the increase since it could even recover by then (for their sake, I hope it does), and they would need to overcharge eventually to make up for the lost revenue during the ramp up.

Over exaggerated... 22% wouldn't kill a business, but it would definitely harm it without a price increase to compensate for the increase costs. 

[N3v3r3nding_N3wb]

4 hours ago, Ryan_Vickers said:

Welcome to Canada, we've been dealing with this for almost 2 years now...

Come to 'Merica, where our pampered, cheese-covered butts get darn near everything at a no-hikeups price.

[PlayStation 2]

31 minutes ago, N3v3r3nding_N3wb said:

Come to 'Merica, where our pampered, cheese-covered butts get darn near everything at a no-hikeups price.

To be fair, most base prices for shit like PCs and software are decided under the US dollar then raise or drop from there.

[The Benjamins]

2 hours ago, Belgarathian said:

Over exaggerated... 22% wouldn't kill a business, but it would definitely harm it without a price increase to compensate for the increase costs. 

But the UK did this to themselves, their actions tanked their economy which forces company's to raise prices. 

[Bouzoo]

4 hours ago, Curious Pineapple said:

All hail KMS Tool

Until the moment when an inspection comes to check if you're using original software. It's cheaper to pay for OS than pay the fine which can be astronomical. And let's not forget the possible legal actions.

Don't forget, this edition is aimed at businesses. 

[RagnarokDel]

8 hours ago, Ryan_Vickers said:

Welcome to Canada, we've been dealing with this for almost 2 years now...

Wish wages had gone up 30% to go along with that decrease in value. Buying a I7 is an expensive decision nowadays

[jaggysnake57]

3 hours ago, The Benjamins said:

But the UK did this to themselves, their actions tanked their economy which forces company's to raise prices. 

ha try telling that to the idots who voted brexit.......

 

for the record this hike isnt because of the euro.....no one gives a shit about the euro its the doller that has caused this. and its not just ms. a company called unilever tried to rise its prices of a fuck tone of household goods from butter to toothpaste, tesco, a major supermarket, said nope and stopped selling all there goods......it lasted a day and unliver caved. loads of things have gone up in price and people still dont get why. seriously this country is a joke right now.

[Bsmith]

9 hours ago, Belgarathian said:

-snip-

..this will not effect any existing customers with price protected contracts....
-snip-

I could be wrong, but isn't that protection there due to an EU law/rule/agreement? if so, the existing costumers got saved by what they are planning to ditch.

[Dabombinable]

Wait, a 15% fall, but a 22% increase? And since the pound is worth less, the price would have increased anyway.

[Tech Enthusiast]

7 hours ago, Belgarathian said:

Over exaggerated... 22% wouldn't kill a business, but it would definitely harm it without a price increase to compensate for the increase costs. 

And that is exactly what will happen in the UK. They will have to increase their prices as well. The consumer will carry the increased costs. As they should. They voted after all.

 

Whatever they import to build or do whatever they build or do,... the imported goods will be more expensive. After all: Why would any outside company just take 15% less from the UK then they did before? It wasn't the outside source fault that vote went that way after all.

 

So unless a product is produced 100% in the UK, without any imports being part of it, the end product will have to be more expensive in the long run.

People in the UK will have to learn that no major vote should be placed in the hands of people that don't even know what their vote will really do.

[porina]

Western democracy in its current form is over-hyped and broken. Optimists are celebrating the sky hasn't fallen yet, but to me it is not a matter of if, but when, and how hard.

 

To the OP's comment about Apple, they would also face the same pricing pressures. 

[Sakkura]

5 hours ago, huilun02 said:

A reasonable proposition would be for all billing to be quoted in Euro, to show that the price hasn't changed since before brexit.

 

Although price adjustment on software for each country is nothing new.

Lol you want to start charging brits in euros as a result of their decision to leave the European Union? 

[Thony]

Yay lets shit on UK as much as possible. Lets charge extra for digital goods because we can ! I hate this world

 

I do understand price increase for cloud service and support, it makes sense.

[Miguel Batista]

9 minutes ago, Thony said:

Yay lets shit on UK as much as possible. Lets charge extra for digital goods because we can ! I hate this world

 

I do understand price increase for cloud service and support, it makes sense.

Its not because they can. Its because they charge in dollars and convert it to pounds. They are getting the same (maybe a bit more for added security since the UK has lost AAA credit rating) for costumers. Because the UK economy tanked post brexit, you get shafted. I do too since I live in the UK. I cycle as a hobby and cycling just got more expensive thanks to the brexit too. My bike used to cpst £650 and now goes for £750. Just because of Brexit. No new kit or anything.

 

And this is just the beggining. Get yourselfs ready for the corporate takeover of this country.

[Thony]

2 minutes ago, Miguel Batista said:

Its not because they can. Its because they charge in dollars and convert it to pounds. They are getting the same (maybe a bit more for added security since the UK has lost AAA credit rating) for costumers. Because the UK economy tanked post brexit, you get shafted. I do too since I live in the UK. I cycle as a hobby and cycling just got more expensive thanks to the brexit too. My bike used to cpst £650 and now goes for £750. Just because of Brexit. No new kit or anything.

 

And this is just the beggining. Get yourselfs ready for the corporate takeover of this country.

Time to move out and wait for the shitstorm to be over in couple of years.

[Prokart2000]

6 minutes ago, Thony said:

Time to move out and wait for the shitstorm to be over in couple of years.

Hopefully in a few years this will all level out

[SCHISCHKA]

11 hours ago, Belgarathian said:

NZ has been relatively stable from what I've found... But 22% is enough to kill a business, particularly when a large % of enterprise $$ is spent on IT maintenance & management. 

 

do you know what happened in australia where the big companies were sent to court to explain why australia gets unfair software pricing? I think it was oracle

[Misanthrope]

Isn't Microsoft dealing with Ireland and not North Ireland thus being immune to Brexit?

[Sir Asvald]

That's it. I'm getting my own country.  I'm leaving UK..

 

Wait, I can't go anywhere.   

 

/s