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Microsoft to increase prices for its Azure cloud services

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July 6, 2015

In the last two to three years, Google, Amazon Web Services and Microsoft have all announced regular price cuts spread over rather long periods of time, but now Microsoft is about to boost its pricing for its Azure Cloud services.

A Microsoft spokesperson told us the company “continues to evaluate the current 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 August 1, 2015.”

And the spokesperson added that “these changes are worldwide, and not just for Australia.”

And the price rises certainly look to be happening also in Europe-- Blogger Aidan Finn has posted some excerpts from Microsoft emails mentioning an 11 percent rise in the Eurozone and 26 percent rise in Australia.

Microsoft is apparently telling its enterprise customers that changes in exchange rates make the rises reasonable.

And as the world's currency markets have showed us in the last few weeks (thank you Greece!), the Euro's not the world's strongest currency right now. In Australia, when Microsoft started operating its two Azure regions, one Australian dollar bought about US 94 cents.

Microsoft sets its regional prices by considering local operational costs and the prevailing exchange rate, making this an adjustment using existing methodologies, and it makes some sense when you think of it, really.

Some of Microsoft's costs in its European and Australian data centers are sunk costs, but it's not as if wages or electricity prices or taxes are falling.

It will be interesting to see if Amazon Web Services (AWS) and Google follow Microsoft's lead. Both have made much of their ability to keep prices low, and still falling. All three companies are also under pressure from forthcoming legislation aimed at making it harder to use legal-but-cynical tax dodges.

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