Mastering Microsoft’s Price Shifts: What UK Orgs Need to Know

Mastering Microsoft’s Price Shifts: What UK Organisations Need to Know

In the ever-evolving landscape of IT services, staying informed about vendor changes is crucial for effective budgeting and strategic planning. As a trusted IT partner, Gardner Systems is committed to keeping you updated. Last year, Microsoft announced some changes in their pricing structure that could influence your organisation’s expense with further changes. 

Understanding the Changes 

Microsoft’s Price Increase in 2023 

Last year, Microsoft raised its service prices by 9% in the UK. This adjustment was part of an effort to harmonies prices across various regions, including aligning UK prices with those in the US. This allows Microsoft to provide consistent pricing in different markets. 

Introduction of Semi-Annual Price Cadence 

Microsoft has also introduced a new pricing model: the semi-annual price cadence. This model allows it to modify prices twice a year, aligning with market dynamics and maintaining consistency across regional price lists. However, this could introduce some unpredictability for customers, especially those without long-term contracts. 

Why Does This Matter for Your Organisation? 

For organisations not under long-term agreements, these semi-annual adjustments could lead to unexpected cost increases. Factors like inflation and further pricing adjustments from Microsoft could significantly impact your IT budget.  

Microsoft plans to regularly evaluate pricing in local currencies every six months, factoring in currency fluctuations compared to the USD. Its aim is to enhance transparency and predictability for customers worldwide. 

What can you do? Consider a 12-Month Contract 

To reduce these uncertainties, consider a contract with a minimum duration of 12 months. This approach could provide several benefits: 

  1. Price Stability: A 12-month contract would “lock in” your current pricing, shielding your organisation from potential mid-year increases. 
  2. Budget Predictability: With stable costs, you can plan your budget more effectively, knowing your Microsoft expenses will not change for the next year. 
  3. Strategic Flexibility: This arrangement allows you to align your IT strategy with Microsoft’s evolving services without concerns about sudden price fluctuations. 

Why Gardner Systems? 

  • Expertise: Our experienced team is well-equipped to handle modern IT complexities, providing solutions that address your specific challenges. 
  • Customised Approach: We understand every business is unique. Our services are designed to meet your precise needs, offering comprehensive support from consultation to ongoing management. 
  • Results-Driven: We’re committed to enhancing your IT operations, reducing costs, and helping you stay competitive in the digital landscape. 

Our Key Offerings: 

  • Cost Optimisation advice: Gain detailed insights into your cloud usage and spending, with tailored recommendations to maximise efficiency and reduce costs without compromising performance. 
  • Exclusive Microsoft Workshops: Keep your team ahead with customised learning paths led by Microsoft-certified trainers, covering the latest technologies and best practices. 

How We Can Help 

Our team at Gardner Systems is ready to assist you in adapting to these changes and finding solutions that best fit your organisation’s unique needs. For any queries or to discuss this in more detail, please do not hesitate to contact us. 

Call us at 0151 220 5552, email us at or fill out a contact form here.  

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