- Cloud PCs will take longer to wake up, but it will give you a 20% discount on your bill
- Microsoft says there is no performance disruption when they are up and running
- With OEMs’ hardware prices rising, Microsoft hopes more SMBs will switch to cloud PCs
Microsoft will cut prices for its Windows 365 Cloud PC services by a staggering 20% despite persistent memory shortages, with the change taking effect from May 1, 2026.
The company hopes that by making cloud desktops more attractive, especially to SMBs, it will be able to grow its customer base and offset costs that way.
It’s also an interesting time for companies to get into cloud computing, as the cost of physical devices continues to rise.
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Microsoft makes cloud PCs cheaper amid rising prices
“DRAM and inventory BOM costs increased $122-$237 from Q1 2025 to Q2 2026,” Omdia noted, with those costs being pushed onto consumer and commercial customers with unit price increases.
The company is also laying out a two-step plan to reduce resource wastage, which can affect performance but will have a welcome improvement on the bill. Cloud PCs only remain active for one hour after logging out.
Once they start to hibernate, they may be a little slower to reconnect than before. Introduced to cut costs and reduce waste, Microsoft says performance remains the same once reconnected.
In other words, the overhaul “helps deliver a lower price point while maintaining the full Windows 365 Business value and capabilities that partners and customers expect.”
New users and existing users who renew their subscriptions will see the changes.
“20% list price reduction for Windows 365 Business, along with a new on demand launch experience,” makes “Cloud PCs more accessible to small and medium business customers,” the company added in an update.
More generally, it signals a change in behavior where Microsoft is aiming for lower performance in the name of cost efficiency, much like a number of OEMs (including the Raspberry Pi) have done by introducing mid-range devices under high-end flagships.
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