Microsoft Licencing Pricing Increases

Microsoft have recently announced price increases to onsite and cloud software from the 1st January 2017. 


This price increase will apply to all Microsoft software whether purchased as a single perpetual licence, or as a site wide 3 year agreement.

What is Microsoft announcing?

Microsoft has announced that British pound price changes to harmonise its prices for software within the EU/EFTA region.

Starting January 1st 2017, British pound prices will increase to realign to the euro with software prices increasing by around 13%


This price increase will affect all new Microsoft EES or OVS-ES agreements and perpetual licences purchased from the 1st January 2017

Any existing Microsoft EES or OVS-ES agreements will not be affected until the agreement expires. 


What are Schools ICT recommending?

Schools ICT are recommending all schools who are considering updating their Microsoft Software in the near future to purchase their licences prior to the end of this term.  By signing up to an EES agreement before the end of the year Schools can save approximately £17 per FTE over the course of a 3 year agreement compared to setting up a new agreement from the 1st January. The below table shows examples of how much money you can save by setting up a new agreement prior to the end of term.


FTE Count Current Cost per year Cost per year from Jan 2017* Cost difference per year Cost Difference over 3 years
10 £438.20  £495.20  £57.00  £171.00
25 £1095.50  £1238.00  £142.50  £427.50
50 £2191.00  £2476.00  £285.00  £855.00

*Estimate cost based on information provided by our suppliers.


Perpetual licence costs are also increasing from the 1st January 2017 so an Office licence which currently costs £41.12 will be approximately £46.50 and increase of around £5.40 per licence.


What do you need to do next?

If your school are considering signing up for a Microsoft EES agreement, or purchasing a number of perpetual licences in the near future please contact us as soon as possible before the end of term. We can calculate your pre- and post- 1st January 2017 prices for you showing you what you could potential save buy purchasing your licencing prior to the end of the year. Once signed up for an EES or OVS-ES agreement your prices are fixed for the full 3 year term of your agreement.


For further information or prices please contact the Schools ICT Development Team on 01609 563086 (option 2) or click here to contact us online.


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