In a significant move impacting its commercial on-premises software and online services, Microsoft India has officially announced a price increase of approximately 6 percent. This adjustment applies to popular offerings such as Microsoft 365 and Dynamics 365, marking the third consecutive year of price adjustments by the tech giant in the Indian market.
The revised pricing structure is scheduled to take effect from February 1, 2024, and has been communicated to enterprise customers through email notifications sent on December 6.
Harmonizing Rupee Prices: Microsoft’s Rationale for the Adjustment
Aligning Indian Pricing with USD Levels in the Asian Region
According to Microsoft, the decision to raise prices in Indian rupees is rooted in the company’s broader strategy to harmonize the cost of its commercial software and online services in India with prevailing USD pricing levels in the Asian region. The email sent to enterprise customers on December 6 highlights Microsoft’s periodic assessment of local pricing to ensure reasonable alignment across regions. The upcoming 6% increase is a direct outcome of this evaluation, signaling Microsoft’s commitment to maintaining consistency in pricing structures. Starting February 1, 2024, both commercial on-premises software and online services will witness this adjustment, reflecting Microsoft’s efforts to streamline its pricing globally. The communication assures enterprise customers that existing orders under volume licensing agreements will be protected from the price hike, offering a measure of stability for ongoing commitments. However, new product additions under these agreements and purchases under new contracts will be subject to the updated pricelist. Customers are reminded that Microsoft’s online services in Indian rupees will remain competitively priced, assuring continued value for users across India. The pricing structure for indirect sales through resellers will continue to be determined by the resellers, maintaining flexibility in the market.
