The just announced Microsoft price increase applies to online services in the New Zealand market such as the popular and growing Office 365 products. They say this is an adjustment to more closely align prices to the NZ market and reflects the rapid evolution of cloud services and the dynamic nature of the market.

Fact:

The Microsoft price increase applies to almost all online services and for most products is 22%. It applies to Office 365, Azure, CRM-Online, Enterprise Mobility Suite, Intune and other enterprise Online Services.

The Microsoft price rise applies with effect 1 April 2016.

Most GTB clients are on an ‘Annual Commitment – paid monthly’ plan for Office 365 (because it is a lower monthly cost). Your current price is locked in until the end of your annual subscription period. However when you get to that point, the cost will go up.

GTB clients on a month by month subscription to Office 365 or Azure services will have their pricing changed from 1 April 2016.

Note that this Microsoft price increase does NOT apply to people with on-premises solutions such as volume licensing. It is only for online services.

Microsoft say they have no other price increases planned at this time.

Comment:

Here are some comments we would like to make regarding this Microsoft price increase:

Office 365 prices have been the same in NZ$ almost since the product was first presented on the market several years ago

The last 2 years in particular have seen lots of valuable extra features added to the Office 365 packages. The product continues to develop rapidly in line with the rapid evolution of the cloud services market

Office 365 contains a huge number of features and applications which can be used by businesses – we covered many of these at the 2 hour Office 365 Demystified training session we held on Thursday (another session is planned and already half full – contact us now if you are interested)

People we present Office 365 to as a part of a re-engineering of their business processes, almost always comment how it seems such a little cost when compared to the on-premises infrastructure it replaces. A Microsoft price increase of 22% is not welcome, but it does not substantially change the underlying financial sense of looking at Office 365

If our partners at Microsoft read the previous bullet point, please also note that that the market in NZ will not react kindly to further increases

For more information about Office 365, and other ways to reduce costly infrastructure investment, please contact us at GTB – sales@gtb.co.nz