Microsoft India will increase business software costs by 6% starting on February 1

7 Dec 2023 , 11:19 AM

Microsoft India, a leading technology company, announced a 6% increase in pricing for its commercial on-premises software and online services, which include Dynamics 365 and Microsoft 365, starting on February 1. After a huge uptake during the pandemic years, Microsoft is raising prices in India for the third year in a row.

The business informed its enterprise clients via email on December 6 that the purpose of the revisions to the Indian rupee price list is to harmonise the costs for online services and commercial software between India and the current USD pricing levels in the Asian region. Moneycontrol was able to access a copy of the email.

The email from Microsoft stated, ‘This change is an outcome of Microsoft’s periodic assessment of the impact of its local pricing for software products and online services to ensure there is reasonable alignment across regions.’

The email states that starting on February 1, Microsoft.com would display the updated Indian rupee prices for direct sales to consumers in India for a limited number of online services, including Dynamics 365 and Microsoft 365.

However, existing business client purchases under volume licencing agreements for products that are ‘subject to price protection’ will remain unaffected by these changes.

‘Prices as specified by the pricelist at the time of order will apply to purchases made under new contracts and new product additions under such volume licencing agreements. The email said, ‘Customers in India who purchase online services in Indian rupees will continue to find Microsoft cloud products highly competitive.

The ultimate prices and currency of sale for sales made through Microsoft resellers will remain set by the resellers.

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