Get Ready - The UK Will See Microsoft Dynamics Licence Costs Rise This Summer

If you’re in the UK, the price of licences for products such as Microsoft Dynamics NAV is highly likely to increase this summer.

Microsoft is changing its pricing policy for its Dynamics range products sold in the European Union (EU) and European Free Trade Association (EFTA). The aim of this is to harmonise pricing and deliver long-term consistency across Europe. Actions to achieve this include aligning the cost of licences purchased in British Pounds with those bought in Euros, based on the exchange rate at the time.

The price alignment will take place as of 1^st July 2012, and will almost certainly increase the price of Dynamics licences to businesses in the UK.

Because of continued fluctuations and divergences between currencies, in particular the British pound against the Euro, the situation at the moment is that the cost of Microsoft Dynamics licences will vary depending on the currency they’re purchased in. The British Pound is currently not as strong as the Euro, so UK organisations are (arguably) purchasing Microsoft business software cheaper than their European neighbours.

By aligning the UK pound (and other currencies within the EU/EFTA) to the Euro, Microsoft is aiming to make sure organisations throughout the EU and EFTA pay more or less the same. Because of the prevailing currency exchange rates, this means Microsoft customers based in the UK will see a rise in prices. At the other end of the scale, customers in Switzerland are more fortunate, and because of the strong Swiss Franc will probably see a reduction in licence prices.

There’s quite a bit of discussion and speculation going on about how much Microsoft licence prices will increase for businesses in the UK. The most optimistic estimates indicate only single percentage increases, while others say it’s likely to be around 20% or even higher. Either way, the speculation will be over soon; Microsoft will be publishing the new pricing in June.

So if you’re in a UK organisation that is considering purchasing a Microsoft Dynamics ERP or Microsoft Dynamics CRM product, or adding users to your existing implementation, what do you need to do?

We strongly recommend talking to your Microsoft business partner to find out precisely how these changes could affect your business. Not all product licences or agreements may be affected, and there could also be exceptions, for example for government agencies or the education sector. However, most businesses will be subject to the increased licence price. If it applies to your organisation, it would be judicious to bring any imminent purchases forward and at least consider buying additional licences before the July price increase. If they turn out to be as high as some predict, the saving could be worthwhile.

If you really want to save money before the price rises, the Microsoft Dynamics NAV 'Give Me Five' Offer is still running. Finishing in June, this offer on Microsoft Dynamics NAV enables UK organisations to purchase five licences for £1800. This is a generous offer to businesses new to Microsoft Dynamics NAV and a chance to save a substantial amount and avoid the currency alignment price rises.

Note: the harmonisation of pricing will not apply to software sold through retailers, such as Windows or products in the Office suite. Similarly where business customers have current enterprise agreements or contracts in place these will be honoured until they expire. However if you’re at all concerned, your Microsoft Business Partner will be able to provide more information, and in particular they’ll have the full price details in June.

By Concentrix TSG – UK Microsoft Dynamics specialists