Big price increases for Microsoft Azure in South Africa

Microsoft will increase South African prices for pay-as-you-go subscriptions on its Azure cloud computing service.

The price changes were announced in an email seen by MyBroadband which was sent to Azure customers in South Africa.

Pay-as-you-go plans allow customers to pay for the Azure services they use each month, with no upfront amounts required and the option to cancel at any time.

Effective from 1 August 2020, Azure prices for these plans will increase by 20.6% in order to realign with global price levels, the email stated.

“Microsoft periodically assesses the impact of its local pricing of products and services to ensure there is alignment across regions and markets. Our August 2020 Azure price change is an outcome of this assessment,” the email noted.

“Customers purchasing Azure will see pricing at levels similar to customers purchasing Azure in other currencies, such as the US dollar, on the Azure website.”

No changes for channel partners

The pricing changes will not affect Microsoft’s channel partners in several programmes, as they are not billed in rand.

These include partners of the Azure in Cloud Solution Provider (CSP), or those with Enterprise Agreements (EA), Enterprise Subscription Agreements (EAS), Microsoft Product and Services (MPSA), or Server and Cloud Enrolments (SCE).

Microsoft previously increased prices for Azure services in South Africa in October 2018, following a sharp decline in the value of the rand.

The currency has weakened substantially in 2020, dropping from R14.01 to the US dollar in January to its lowest level ever against the dollar at over R19 in April.

It has since recovered to trading between R17 and R18 to the dollar.

MyBroadband contacted Microsoft to confirm the price increases, but we did not receive a response by the time of publication.

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Big price increases for Microsoft Azure in South Africa