Microsoft EU-EFTA Licensing & Pricing Policy update

Understanding the UK volume licensing price increases

Following an announcement earlier this year, all Microsoft Volume Licensing** prices will increase from 1st July 2012. This change is reflective of a Microsoft Corporate pricing policy designed to normalise the current differences in European pricing. This could have a significant impact on your business if you do not act now.

We are now able to share with you the percentage increases to the UK pricelist, as announced by Microsoft on 1st May 2012.

• Enterprise Agreement prices will increase by an average of 25%
• Select Plus agreement prices will increase by an average of 24%

These are significant changes. How can Computacenter help?

We recommend that you address these changes early. As part of our on-going and continued support your Account Manager, together with our Licensing experts, will work with you to guide you through the process of assessing the financial impact to your business prior to and over the next 12 – 36 months.

Contact Computacenter today to find out how we can help you transition and minimise the impact of these changes to your business.

Public Sector

• Microsoft and the Cabinet Office will provide a further update shortly regarding a pricing and licensing for the UK Government to replace the PSA09 framework. In the meantime we can confirm that the terms of the PSA09 framework will remain in place until June 30th

• Microsoft’s Academic volume licensing programmes are outside of the scope of the PSA09 framework; however prices under our Academic volume licensing programmes will not be subject to the EU/EFTA pricing increases from July 1 2012

• Microsoft’s Government Open License program SKU’s will be reinstated onto the UK pricelist from July 1 2012. Both Government Open License program and the Government Open Value/Subscription Program will be subject to EU/EFTA price increases from July 2012 (prices charged to partner, partners continue to determine final pricing to the end customer

• The N39 UK Public Sector agreements are now retired and standard Microsoft license agreements with applicable PSA amendments apply to all new deals signed after May 1st 2012 to streamline order processing and reduce the cost of sale

Microsoft UK Price Change FAQ

• How much will the increase be?
  The pricing preview release on the 1st of May has shown this to be approximately 26%.

• What products are affected?
  All products will be affected by this increase, there are new products due for launch such as SQL 2012 which will be at a higher price than current prices, these will also be subject to the new pricing from July 1st 2012.

• What is the reason for the price increases?
  Microsoft’s key reason for making these significant changes in price is to do with the sustained currency differences across some EU/EFTA countries and Microsoft’s desire to establish greater price consistency across Europe
  

• Will any products go down in price?
  This is not an expected outcome.  Some European countries for example Switzerland will see a price reduction but only to bring local pricing in-line with the Euro/Sterling pricing.

• Does it apply to all licensing programs?
  All Volume licensing programmes except Academic will be affected by this change including PSA’09 Government contract customers. 

• Will this apply to products already on my EA?
  No. Existing Enterprise Agreements and Enterprise Subscription Agreements   will see no price rise in the contract's lifetime.  Computacenter recommends however that you contact your Software Specialist and Account Team to review your agreement renewal date and look at options to potentially renew early to avoid the expected higher prices.

• My Enterprise Agreement doesn’t renew until after July 1st what should I do?
  Computacenter recommends that you contact your account team who can arrange a session with one of our skilled Software Specialists.  They are best placed to consult on potential options and help you negotiate with Microsoft should an early renewal be the best course of action.

• I have a Select / Select Plus Agreement, is there anything I can do to avoid the price rises?
  Yes, Computacenter recommends that you contact your account team who can arrange a session with one of our skilled Software Specialists.  They are best placed to consult on potential options to migrate your agreement to a fixed price Enterprise Agreement before July 1st to avoid the price changes for the duration of any replacement agreement.

• We’re not planning to deploy Windows 7 until the end of this calendar year hence we’d not yet begun our volume licence negotiation with Microsoft, what would you advise?
  With the end of support for XP due on April 14th, this is an ideal time to review your volume license agreement. Computacenter advise that you contact your account team who can arrange a session with one of our skilled Software Specialists. They can consult on the right course of action to help mitigate as best as possible.

• I have an active Enterprise Agreement; will my True-Up prices be affected?
  No. All items listed on a contract CPS (Customer Price Sheet – component of their EA Agreement) will show a fixed price for any true-up licenses. Licence SKUs that are not classified as ‘Additional Products’ on the Enterprise Agreement will be impacted.  If you are considering net-new licences to your existing EA then we recommend you contact your account team who can arrange a session with one of our Software Specialists to review options with you. They are best placed to consult on potential options and help negotiate with Microsoft to avoid potential price changes.

• Can I avoid these price increases?
  Unfortunately not. Microsoft is unlikely to reverse their position on this. The best way to reduce the impact to your business would be to secure the products you need prior to the increase coming into effect or to lock in pricing for future years through signing an Enterprise Agreement in advance of the price rise.

• Can I purchase cheaper elsewhere in the world to avoid price hikes?
  There are some alternative purchasing options available, but to understand your eligibility we recommend contacting your account team who can arrange a session with one of our Software Specialists to review options with you

• Can I renew early but pay later to avoid the increases?
  Microsoft have announced an ‘Early Commit’ programme to assist you in completing your renewal which otherwise wouldn’t normally be renewed on or before a date shortly after the July 1st. This will not change the actual renewal date of your expiring contract, but will bring forward the renewal commitment to access pre-July 1st prices. It’s important engage your Computacenter Account Team and  Software Specialist who can assist in negotiating this with the Microsoft account team as needed.

• Won’t I just be able to ask for bigger discounts from Microsoft?
  It may be possible to negotiate pricing with Microsoft but their opening position will be higher and as such you may still end up paying more than you would before any price rise.