- Microsoft moves to exchange rate control once a year, not twice a year
- Many commercial products saw price increases due to AI, security
- Other recent changes can all add up to big price changes
In an effort to make pricing more predictable for customers and partners, Microsoft is dropping its current twice-yearly exchange rate audit to once a year for many of its commercial cloud lines.
The change will reduce the frequency of unexpected price changes for organizations across services such as Microsoft 365, Office 365, Dynamics 365 and more.
It marks a shift from the regular exchange rate checks Microsoft had previously introduced, citing a need to keep local prices in line with USD prices.
Microsoft will review exchange rates once a year, not twice, going forward
In early 2026, European Microsoft customers were met with a 7.4% price reduction due to a weakening dollar, but under the new policy, customers would expect fewer revisions and, if the dollar continues to weaken, higher costs.
But at the same time, Microsoft is raising prices for a number of commercial licenses due to additional AI capabilities, new security features and more. From July 1, many customers saw costs increase by as much as 33% in the most severe cases, but some services such as Office 365 E1 remained unchanged.
While existing subscriptions are generally protected until renewal, customers nearing the end of their contracts may face significant changes as the two price adjustments come into play.
Acknowledging that geopolitical uncertainty can swing currency values ​​drastically, the company added that it could make one-time changes outside of the once-yearly review period “under limited exceptional circumstances.”
But with the company previously removing volume discounts on certain lines, some customers could face some pretty significant price changes in 2026, leaving them wondering if next year could be much of the same.
Via The register
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