Microsoft offers UK volume licensing price hike reprieve

Summary:Following a July 1 price hike for U.K. business customers, Microsoft is mitigating the increased licensing costs through a "transition promotion."

Microsoft has introduced a three-month 'promotion' in a bid to help business customers ride out a significant price hike that affects enterprise products.

A blog post by a Westcoast licensing expert said the Redmond-based technology giant will offer a discounted price list on products affected by the increased prices, including SQL Server, Systems Center, along with Windows Server licenses and Remote Desktop client-access licenses.

Microsoft said the promotion is specifically for Open Value licensing customers, who will have to endure price increases of thereabouts 30 percent.

The blog post notes that "these [prices] are not as low as Junes pricing for the corresponding products, they will go a way to ease the pain of the price increase on the customers."

The promotion will run from July through to the end of September 2012.

Microsoft partners were warned in the early months of the year of a "significant" increase in price. Consumer software and academic pricing would remain unchanged, so back-to-school students won't have to dip into their inaugural beer fund.

For some customers, that could see an £80,000 ($125,000) order bumped up to £100,000 ($155,000) as of this week, notes Richard Gibbons, who stepped in for ZDNet's Mary Jo Foley earlier this year.

The reason? Microsoft said it was "aligning" the price of its products across Europe, because the U.K. business customer base enjoyed products that were around-about 30 percent cheaper than in mainland Europe. It's a logical and fair move on the face of it, but many have complained that the hike is too much and too soon.

"Final prices and currency will continue to be set by partners, where the licence is sold by a partner to the end customer," a Microsoft said in a statement.

Microsoft U.K. remains in negotiations with the U.K. Cabinet Office to see if the government can crank out a knocked-down price for its public sector services --- despite the fact even registered charities could not escape the price increase.

The Cabinet Office remained tight-lipped on the negotiations, but said an announcement would come "in the next few weeks."

Related:

Topics: Microsoft

About

Zack Whittaker writes for ZDNet, CNET, and CBS News. He is based in New York City.

zdnet_core.socialButton.googleLabel Contact Disclosure

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Related Stories

The best of ZDNet, delivered

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.