Microsoft Announces UK Cloud License Price Reduction

It is true to say that when Ultima normally write urgent Microsoft updates, it centres around negative news and how to take advantage before the changes occur. In this case, and for the first time in a very long time, the update is positive for customers and that is because Microsoft are reducing the cost of their licenses.

What’s happening?

At 5pm on 3^rd December, Microsoft announced that they are reducing pricing on cloud subscription licenses. This will happen on 1^st February 2025 and will be between 5-6% price reduction, across all channels for UK customers. There is an awareness that Azure will be closer to 5% price reduction. On-premises licenses are not impacted.

This is part of Microsoft global strategy for pricing harmonisation and is something that is reviewed every 6 months. Until now, this has meant increases, and this is the first review that has resulted in UK cloud subscription licensing reduction. Those in Brazil, for example, are going to have 12% increase.

Why is this important?

Many customers who have renewals in Q1 in 2025 (or end of 2024) should take advantage of this. Those later in 2025 will automatically have these applied. With this news being very recent, and unexpected, we are pushing for full clarity between the product fluctuations and when we can progress with accurately quoting customers with this reduction. Please stay tuned or contact you licensing consultant for more information and how it will impact your organisation.

Have questions? Reach out to your licensing consultant, or drop us a message – we’re here to help