First Microsoft Price Increases in a Decade Will Affect Customers, Says UpperEdge

By Justin Johnson.
Updated Sep 9, 2021

BOSTON (PRWEB) September 09, 2021 - UpperEdge, an independent third-party advisory company that empowers enterprises to get the most value from their IT supplier relationships analyzes how Microsofts newly announced pricing increases will impact customers.

According to Microsoft, there hasnt been a price increase to these product suites in over a decade. Over that 10-year period, there has been considerable value added to the Office 365 and Microsoft 365 product suites.

Understanding these price increases and why Microsoft is adding them will be critical to negotiation strategies moving forward.

One way to increase revenue is to increase the average revenue per user (ARPU), something all cloud vendors focus on. If the underlying list price goes up across key products like Office 365 and the all-in cloud bundle Microsoft 365, thats a fast way to increase the ARPU tied to their entire base of customers using these products, said Adam Mansfield, Microsoft Practice Leader at UpperEdge.

Microsoft is also ultimately trying to move their customers to the Microsoft 365 E5 or even E3 bundles. If you increase the Office 365 components of these all-in cloud bundles, which also have Windows Online and EMS, it certainly helps motivate customers to consider moving to the more robust bundle, Mansfield added.

Key Insights When Navigating Deals

With the right tools, market intelligence and approach, it is possible to secure highly competitive commercial terms while also laying the foundation for transforming your relationship from tactical to strategic. Visit https://upperedge.com/what-we-do/microsoft-advisory-practice/ for more information on the Microsoft Commercial Advisory Service.

About UpperEdge

UpperEdge maximizes the value its clients receive from their key IT supplier relationships by helping them develop and execute fact-based sourcing, negotiation, and program execution strategies. Visit http://www.upperedge.com for more information.