14 DAY TRIAL // Microsoft is one of the companies that wanted to increase product pricing in the United Kingdom following the Brexit vote, but the country’s government has just managed to avoid spending 15 million pounds more on licenses thanks to a last-minute deal signed recently.
A pricing deal between the United Kingdom and Microsoft is set to expire in June this year, but according to The Reg, the two have just signed an extension for another year. The agreement covers 200,000 central government customers transitioning to Office 365 and includes a price freeze at December 2016 levels.
While Microsoft hasn’t released a statement and the terms of the deal are not known, it’s believed the company might have obtained other benefits, though without confirmation it’s all speculation.
Microsoft, on the other hand, recently announced a price hike following the Brexit vote, increasing on-premise licensing by 13 percent and cloud licensing and services by 22 percent. Consumer products like Surface devices also recorded price increases for the same reason.
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The United Kingdom, however, is playing it safe with Microsoft, with Prime Minister Theresa May herself visiting the company’s campus in the country and praising its role for the local economy.
“Companies like Microsoft are important for future of the UK economy. In the UK we have a lot of clever people who can do technology well, and that’s an area in which we want to push as a government. We have a valued relationship with Microsoft and I’m sure we will continue to work with them for years to come,” Theresa May said after the visit in late March.
Microsoft has already expressed its commitment to the United Kingdom despite the Brexit vote and the company wants to expand its local operations, though there’s no doubt that agreements with the government like the one signed recently supports its plans.
We’ve reached out to the company to ask for more information about this agreement and we’ll update the article should details be shared.