Microsoft to hike Azure Australia prices

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Microsoft to hike Azure Australia prices

Microsoft will increase prices for Azure Australia, reportedly by 26 percent.

"Microsoft continues to evaluate the market conditions in the countries in which we operate. As a result, we will be adjusting the prices for the company’s enterprise cloud services in Australia, starting 1 August 2015," a Microsoft Australia spokesperson told CRN.

David Markus, managing director of Melbourne-based Combo – a two-time CRN Fast50 company – said charges would go up 26 percent in a blog post on the SmartCompany website, speculating that Microsoft had made the move on the basis of a stronger US dollar.

Markus questioned the decision. "This is a justification that is easy to make when sitting at a board table in America, but I would love to hear in the comments below what the Australian market place thinks of this – given the technology being used is sitting on Australian soil in local data centres and the set-up cost is a sunk cost.

"Should Microsoft be driving the price up here as they would have for licensing being sold out of the USA or a hardware vendor would for imported hardware?"

Markus said Microsoft is one of many vendors under pressure to increase Australian pricing. CRN has reported price increases from Hewlett-Packard, Cisco and Apple this year.

In April, technology analyst firm Gartner predicted that global IT spending would shrink by 1.3 percent, due to the strong US dollar putting off customers.

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