Users of Microsoft’s services and Windows operating system in India are in for a financial adjustment as Microsoft India declares a consecutive increase in prices for the third year.
The forthcoming price hike, set to take effect from February 1, 2024, applies to software installed on commercial on-premises and online services such as Microsoft 365 and Dynamics 365, with a notable 6% increase.
Reasons Behind the Price Surge:
Microsoft India justifies its decision to elevate prices by citing the periodic assessment of the sustainable value of its software products and online services.
The aim is to align local prices with global standards, considering factors such as currency fluctuations.
In essence, the cost adjustments are a response to maintain equilibrium amidst changing economic conditions. The new prices will be visible on Microsoft’s website starting February 1, 2024.
Impact on Existing Orders:
Existing orders with predefined provisions in the agreement that safeguard them against price fluctuations will remain unaffected by the upcoming changes.
Microsoft India seeks to maintain transparency and reassure its clients that ongoing commitments will be honored as agreed upon.
Progressive Price Hikes:
This marks the third consecutive year of price hikes by Microsoft India. The initial surge occurred in February 2022, following nearly a decade of stability, where prices increased by approximately 20%.
Subsequently, in February 2023, another increase of 11% was implemented. The upcoming adjustment, set at 6%, continues the trend of adapting prices to changing economic landscapes.
Financial Overview of Microsoft India:
Despite the price hikes, Microsoft India has demonstrated robust financial performance.
In the fiscal year 2023, the company witnessed a substantial 30.2% annual growth in net profit, reaching Rs 648.67 crore.
Consolidated revenue also experienced a notable surge, soaring by 39% to Rs 19,353.79 crore.
