As the Rupee in India falls, foreign companies have to adjust their prices accordingly. To align as per the value of the US dollar and to narrow down the differences in currency, Microsoft had announced a hike in the prices in December 2020. From February 1, 2021, the Indian market will see an increase in Microsoft software prices. The changes include:
An 11 percent increase in prices of on-premises Software- On-premise software includes that software which needs only one-time capital investment.
Nine percent increase for online services: Online services includes software that needs a monthly subscription.
The prices will be effective for Indian customers from February 1. The online services which will see these changes are:
- Office 365
- Microsoft 365
- Dynamics 365
Let us discuss the immediate effects of this price change on customers and resellers:
Effect of changed pricing on Customers:
People who are willing to purchase the software will have to according to the new price list. But the customers who have already ordered the software need to worry as they do not need to pay the increased price.
Effect on Volume Licensing Agreement:
The same applies to Volume Licensing Agreements. People who are already under the licensing agreements don’t have to pay extra. However, the new orders and purchases will be as per the newly announced price-list. Also, if there are any additions to the products, the new charges will be applied for the same.
Effect on resellers:
Microsoft products are usually sold through Microsoft resellers. Microsoft Partners still hold the power to decide the final prices of the product.
As per the sources, Microsoft has not made itself clear about the changes in office or windows. Microsoft has also requested its partners to converse with their Product Data Management in case of any queries.