MICROSOFT INDIA REVISES PRICING - THE INCREASE WILL COME INTO EFFECT FROM FEB 2021

Microsoft India has announced Indian rupee pricelist changes that will be effective from 1 February 2021. As per a statement by Microsoft, starting February of next year, Indian rupee prices for commercial on-premises software will see an increase of 11 percent to realign close to present US dollar pricing levels in Asia. Furthermore, Indian rupee prices for online services will increase by 9 percent to readjust close to global US dollar levels.


Microsoft has further revealed that business customers, who have already placed orders and are under volume licensing agreements for products, will not pay the renewed price.

However, as per Microsoft India, prices of new product additions under volume licensing agreements as well as purchases under new contracts will be done as defined by the price list at the time of the order.


Frequently Asked Questions (FAQ)


General How do you make the assessment?

Many factors contribute to our ongoing assessment of pricing such as local and regional market dynamics including competition, business models, local currency rates and local inflation


Why is the pricing adjustment for software products larger than online services?

Both commercial software and online services pricing in Indian rupee are being aligned very close to US dollar levels in the Asian region. Many factors contribute to our ongoing assessment of pricing for both on-premises and cloud, however some such as competition, cloud business models and its costs, currency rates, etc. influence cloud pricing differently. Even after this pricing adjustment, customers across the region buying in Indian rupee will find pricing similar to global US dollar levels


Do you ever decrease prices in response to foreign currency (FX) changes?

Yes, we do, and we have decreased Commercial Cloud pricing. We apply the same ongoing assessment of pricing across local market, competition, currency and inflation scenarios. The most recent broader Commercial Cloud price reductions were in Taiwan and China.


Which Volume Licensing programs will be impacted?

Revised Indian rupee prices will be applicable to new and renewing contracts for commercial online services available through volume licensing programs. For all indirect licensing agreements, resellers continue to determine final price and currency of sale. Price will adjust as noted above for commercial online services sold through an Enterprise Agreement (Commercial, Government, Campus, and Enrollment for Education Solutions), the Open Value Agreement (Commercial, Government, and Education Solutions), a Microsoft Products and Services Agreement (Commercial, Government, and Academic), Select/Select Plus Agreement (Commercial, Government, and Academic), Services Provider License Agreement (SPLA), Syndication, and Microsoft Subscription Program (Commercial, Government, Not for Profit and Academic). Please see the Product and Licensing section for additional details.


Is commercial pricing in Cloud Solution Program (CSP) impacted?

Existing subscriptions in CSP have annual term, so prices are protected during the term, which is normally twelve months from the start of paid subscription. Additional CSP seats to an existing subscription (February 1, 2021) will be at the original billing price, which remains in place for the remaining term of the subscription 3 (provided the subscription was purchased before February 1, 2021). Expiring or new subscriptions will be subject to the then current prices lists as determined by the channel partner.


Azure pricing to CSP partner is under the ‘pay-as-you-go’ model, with the benefit of no minimum purchase requirements or future commitments with Microsoft and flexible pricing with no price lock. For CSP partners purchasing the legacy Azure PAYG offer (priced in Indian rupees), prices will increase effective February 1, 2021 to levels similar to the new commerce Azure pricing (Azure plan), priced in USD and available to CSP partners. In CSP, end-customer pricing and impact is as determined by the channel partner.


How will FPP/retail, OEM and other indirect sales schemes be impacted?

Prices of FPP software, and Microsoft software pre-installed on PCs (OEM) remain unchanged. Microsoft resellers and customers can continue to purchase at current prices. For indirect sales, resellers will continue to determine the final pricing for end users.


Will prices change for government/public sector or not-for-profit customers?

We have taken a unified approach to price adjustment which will be equal for all categories of volume licensing customers, including commercial, government/public sector and academic customers.


How are promotional offers being designed to offset these increased prices?

Promotions are aligned to business and market needs. Promotions are not used to offset price increases.


How will customers be informed?

Account managers and partners may contact their customers using the To Customer email template and Customer FAQ provided.


Azure

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

Effective February 1, 2021 customers purchasing Azure in Indian rupee will see prices adjust to levels more consistent with current US dollar prices through Azure.com and in volume licensing agreements. For how it will impact various customers depends on the program through which they are consuming Azure.

- Pay-As-You-Go Subscriptions on Azure.com: Customers under the ‘pay-as-you-go’ model enjoy the benefits of no minimum purchase requirements or future commitments with Microsoft. For these customers in India new prices will be effective February 1, 2021.


- Azure in Cloud Solution Program (CSP): In CSP, end-customer pricing for Azure services is determined by the channel partner.  Azure purchased via Open: Consumption rates will increase effective February 1, 2021 to the new higher pricing in India as applicable on Azure.com.


- Azure in Mid-term Enterprise Agreement (EA), Enterprise Subscription Agreement (ESA), and Server and Cloud Enrollment (SCE):


How does this price increase impact customers with Azure Reserved Instance (RI) or planning to purchase an Azure Reserved Instance (RI)?

The price changes will have no impact on individual Reserved Instances that have already been charged. Azure RI prices will adjust on February 1, 2021 for all new or additional orders.


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