Microsoft plays down pricing talk

Microsoft (NASDAQ:MSFT) has responded to concerns from its resellers that planned changes to its software licensing model could mean a price hike of up to 20 percent.

The software giant told Channel Pro that any calculations made by partners right now are “pure speculation”. Based on the exchange rate at end of January, the firm reiterated what it told partners – that it expects “the large majority of UK customers to experience a modest, single digit price rise.”

While some Microsoft partners are waiting to see how the changes will affect them, some – including its largest UK reseller, Insight – have suggested there is a potential uplift of 20 percent on some products, based on current European and UK pricing.

In a statement sent to partners, Microsoft general manager, Richard Smith, said: “To address sustained currency differences between European countries, Microsoft will adjust prices for volume licensing customers in the region starting from 1st July 2012.

“By establishing and continuing to maintain price consistency, Microsoft is offering clear and equitable pricing for customers and partners. Microsoft is communicating this now to offer our partners and business customers time to prepare for this change.

He added that “Microsoft’s customers and partners will be able to choose to purchase licenses through a volume licensing program in either their local currency or Euros. The pricing changes affect volume licensing programs only and do not apply to Windows, Office or other products sold to consumers through retailers or pre-installed on PCs.

“Additionally, where products are sold through partners in Europe, Microsoft is unifying its volume licensing pricing policy so that the price charged to the partner will be based on the location of the partner’s channel agreement. Partners will continue to determine final pricing and currency of sale to customers.”