Report: UK government strikes deal with Microsoft to avoid post-Brexit price hike

Microsoft last year announced changes in pricing for customers buying enterprise software and cloud services in British pound. Microsoft increased British pound pricing for enterprise software and cloud services within the EU/EFTA region. British pound prices for on-premises enterprise software was increased by 13% to realign close to euro levels. Most enterprise cloud prices in British pounds was increased by 22% to realign close to euro levels.

UK government is one of the largest public sector customers of Microsoft in Europe and an increase of 22% price will really affect government’s IT budget. The Register recently reported that UK government has signed a deal with Microsoft to avoid post-Brexit price increase and save £15m. The government has extended their pricing deal in place with Microsoft until June 2018 and it will apply to nearly 200,000 central government customers, as part of a move to Microsoft’s Office 365. It also includes a freeze for departments at December 2016 prices.

On a related note, recently we reported about UK Prime Minister Theresa May’s visit to Microsoft’s UK headquarters. And UK’s Department for Education (DfE) has recently announced that they are deploying Surface Book and Surface Pro 4 devices for its 5,000 employees.

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