Microsoft Announces Pricing Update for Canada

Microsoft Announces Pricing Update for Canada

Microsoft announces pricing update for Canada that will be effective December 1, 2018.

Microsoft always assesses local pricing for software products and online services to ensure alignment across regions.

Microsoft does not consult with its customers or partners prior to announcing the price increase.

According to Microsoft, beginning December 1, 2018, all Canadian prices for online services will increase by 5% to realign close to global US dollar levels.

All Microsoft pricing increases are put against US dollar levels resulting in organizations in New Zealand facing an increase by 9% on the same date.

This pricing increase will not apply to commercial on-premises software, consumer software, or consumer cloud services.

Microsoft announces pricing update for Canada that will be effective December 1, 2018 and it will include the following:

  • Volume licensing program
  • Enterprise Agreement (Commercial, Government, Campus, and Enrollment for Education Solutions)
  • Open Value Agreement (Commercial, Government, and Education Solutions)
  • Agreement (Commercial, Government, and Academic)
  • Cloud Solution Provider (CSP)
  • Syndication
  • Microsoft Subscription Program (Commercial, Government, Not for Profit and Academic)

Is Canada the only country with a Microsoft price increase?

On December 1st, Canada and New Zealand are set for changes of pricing. Each country with have a different increase as Canada is facing a 5% while New Zealand is facing a 9% increase.

How does Microsoft make the assessment for price increase?

According to Microsoft, they use multiple factors to assess its pricing to ensure there is a reasonable alignment with the needs of its customers and marketplace.  Some factors include local and regional market dynamics including competition, business models, local currency rates, and local inflation.

How frequently does Microsoft adjust pricing?

Microsoft maintains stable and predictable prices. Any future changes to pricing will be assessed based on Microsoft’s internal pricing strategy and processes in order to maintain relatively stable prices.

Revised Canadian dollar prices will be applicable to new and renewing contracts for commercial online.

How will the Canadian price changes impact existing Azure customers in volume licensing?

Microsoft has announced that effective December 1, 2018, customers purchasing Azure in Canadian dollars will see pricing at levels similar Azure in US dollars.

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Microsoft Announces Pricing Update for Canada (2)

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