Microsoft Prices increased without adequate notice to Partners?

Software giant, Microsoft has recently increased five per cent wholesale price for partners for on-premises products bought through the Open License program, occurring in a phased approach starting from September 1, 2021.

However, partners have risen concerned about this sudden change in pricing and said Microsoft has not given adequate notice to partners well in advance.

According to partners, Microsoft used to inform its partners around two to four months prior to any price change in products but this time Microsoft had issued notice 15 days prior to the next change in the pricing.

According to the circular issued on August 17, 2021, the Windows and RDS CAL pricing increases are effective from September 1, 2021.

Circular also informed partners that December 31, 2021, is the last day to transact through the Open License program. From January 1, 2022, partners and customers can no longer transact products in the Open License program. As of January 1, 2022, partners must be onboarded into the Cloud Solution Provider Program to transact perpetual software offers.

Microsoft informed through circular that price increase on the Estimated Retail Price (ERP) of 10% for certain EMS products and Office Professional Plus, Office Standard (on-premises), and the individual apps, was announced in February 2021, effective August 1, 2021, for EMS and October 1 for Office. Windows and RDS CAL pricing increases are effective September 1, 2021.

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