Microsoft’s price increases have gone down like month old milk left at the back of a fridge with public sector customers and the channel being blamed for not explaining them well enough.
Vole made changes to its pricing structure from the start of last month, with the aim of simplifying things. That meant that there would be an introduction of single prices in some areas and the removal of complicated discount structures in others.
At the time Microsoft said that Government pricing was going to be offered at the lowest commercial pricing and customers would be given a price sheet that guides them through breaking down the cost of a purchase. However, that is starting to look like a 10 per cent price hike.
The society for IT practitioners in the public sector (SOCITM), is furious at the the price increases and the pressure to sign up before next month, or risk further charges.
SOCITM hit out at the channel, complaining that resellers had not been the best at communicating what was going to happen with pricing.
“Communication (via resellers) of changes needs to be improved in the future to help customers understand change and impact, so that they could plan for it in a timely manner”, SOCITM said.
The public sector has faced years of austerity and constrained budgets and SOCITM is asking Microsoft if that sector can “receive the same discounted rates as education and the third sector”.
SOCITM and Microsoft met at the end of last month and the vendor indicated that it was mindful of the position of the public sector and told the group that it would be looking to reduce costs and improve services for that customer base where it was possible.
The software vendor had wanted contracts for Office 2019 sealed before next month or those delaying would face the prospect of an additional five percent increase. The lobby group has called for an extension to be made until March next year.
