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Microsoft NZ hikes up Azure pricing by 22 per cent

Microsoft NZ hikes up Azure pricing by 22 per cent

"Microsoft has been under pressure to get runs on the board and now that they have they can hike prices as clients can’t simply leave."

Microsoft New Zealand will increase prices for Azure and Azure Marketplace by 22 per cent on April 1, in a bid to “closely align” with prices in other markets across the world.

In an email sent to customers and partners - seen by Reseller News - the tech giant will adjust prices as denominated in New Zealand Dollar (NZD), with prices for online services in other geographies set to remain unchanged.

“Microsoft periodically assesses the impact of its local pricing to ensure there is a reasonable alignment with the needs of customers, partners, and the marketplace, and may make changes in response to its assessment and feedback,” the email states.

According to the memo, prices under Pay-As-You-Go subscriptions will increase with billing cycles beginning on or after April 1, 2016.

“If you’re subscribed to previously offered 6-month or 12-month plans or our currently offered 12-month plan, you have price protection and will receive the better of the price at the beginning of your subscription term or the current market price,” the email states.

With regards to Enterprise Agreements (EA), Enterprise Subscription Agreements (EAS), or Server and Cloud Enrollments (SCE), Microsoft says 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 better of their baseline price or the new market price.

Consequently, a customer’s or partner’s baseline price is the price at the beginning of their Azure agreement or when a new Azure service became generally available.

Microsoft adds that new Azure services will be priced at the then-current pricelist price.

Following the news, one Kiwi partner told Reseller News: "Microsoft has been under pressure to get runs on the board and now that they have they can hike prices as clients can’t simply leave."

In response, Frazer Scott, Director of Marketing & Operations, Microsoft New Zealand confirmed to Reseller News that Microsoft is "committed to delivering state-of-the-art security and compliance enhanced cloud computing solutions."

"As part of our on-going business process and in light of the rapid evolution of the local market dynamics, Microsoft will adjust prices for company’s enterprise cloud products in New Zealand."


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