Microsoft will increase the price of commercial cloud products next year by as much as 8 percent, including Azure, Office 365 and Dynamics.
The new prices will come into effect from 1 January 2019 and will apply to all commercial cloud products sold via volume licensing agreements. This includes commercial, government, education and not-for-profit customers, though consumer and on-premises software will remain unchanged.
Microsoft said the changes were made to "more closely align to online services pricing in other markets" and noted that it was the first time it had hiked cloud prices in more than three years.
"Microsoft offers the benefits of AUD pricing and billing to Australia partners and customers to provide more stable and predictable pricing," the company said in a statement.
"Customers buying in Australian dollars will continue to find Microsoft cloud offerings highly competitive with Azure, in particular, remaining competitively priced versus the market."
Existing orders under volume licensing agreements will remain unchanged; only new and renewing contracts will be affected. Price changes will also be equal for all customer categories, including commercial, government, education and not-for-profit.
The affected volume licensing agreements include:
- Enterprise Agreement (Commercial, Government, Campus, and Enrollment for Education Solutions)
- Open Value Agreement (Commercial, Government, and Education Solutions)
- Microsoft Products and Services Agreement (Commercial, Government, and Academic)
- Select/Select Plus Agreement (Commercial, Government, and Academic)
- Cloud Solution Provider (CSP)
- Microsoft Subscription Program (Commercial, Government, Not for Profit and Academic)