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Microsoft Alert: Pricing Changes Coming October 1, 2018

Enterprise Software | Posted on July 30, 2018

Microsoft recently announced a series of price increases, effective October 1, 2018. These price increases will impact Microsoft’s hero suite of products and many under the most popular licensing agreements. This will affect most companies, including government, healthcare, finance, and retail, with the exception of educational and non-profit organizations.

Products affected:

  1. Office
  2. Productivity Servers (Exchange, SharePoint, Skype)
  3. Windows Enterprise
  4. Windows Server Standard
  5. Windows Server CAL
  6. CoreCAL
  7. ECAL
  8. Level A Enterprise Agreements

What you need to know:

On October 1st, 2018, Microsoft will make two major changes to pricing. The two primary changes are:

  1.  Microsoft is removing programmatic price Level A discounts for EA/SCE/Select Plus/MPSA and Level C discounts for Open/Open Value
  2. Microsoft is increasing the price for the following perpetual products: Office, Core CAL, Enterprise CAL, Productivity Servers (Exchange, SharePoint, Skype for Business), Windows Server Standard and Windows Enterprise.

The current guidance is as follows for the product pricing changes:

  • 10% increase for Office and Productivity Servers
  • 30% increase for Windows Server RDS Device CALs
  • Up to 14% increase for Windows Enterprise E3 Per Device (Parity with User Licensing)
  • Windows Server Standard pricing guidance is not yet published

Removal of certain programmatic level discounts is expected to result in the following price increases:

  • Existing EA Level A: 2-3.8%
  • Existing MPSA/Select Plus Level A: <4%
  • Existing Open Business/Open Value Level C: 4%
  • Existing Government EA: 6%
  • Existing Government MPSA/Open: 3%-18%

Please Note: There are mitigation options and some of these changes may not come into effect in your organization for several years. This change affects all segments, but Government and Commercial most significantly.

Microsoft customers of Softchoice

We are aware of the complexities of software licensing and the impact it can have on your business. To better understand these changes, you can set up an assessment with one of our certified Microsoft Licensing Specialists. They’ll guide you through the recent changes, how they will affect your business and what kind of financial impact you can anticipate. We will also identify any steps  you can take to mitigate the impact of these changes. Schedule a call with us today!

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