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Microsoft Raises UK Cloud, Software Prices 22% After Brexit-Fuelled Pound Drop (techweekeurope.co.uk)

Posted by ryuzaki0 on from the brexit-aftermath dept.

Reader Mickeycaskill writes: Microsoft is to substantially increase its prices for software and cloud services prices offered in British pounds in order to accommodate the sharp drop in the currency against the US dollar in recent weeks. Beginning in January 2017 on-premises enterprise software prices will go up by 13 percent and most enterprise cloud prices will increase by 22 percent, bringing them into line with euro prices. Microsoft said it isn't planning to change its prices for consumer software and cloud services. The value of the pound has fallen by about 18 percent since the EU referendum on 23 June.

6 of 214 comments (clear)

  1. Not just bitcoin by shaitand · · Score: 3, Interesting

    Apparently these things happen even with much larger volume fiat currencies as well.

    1. Re:Not just bitcoin by MightyMartian · · Score: 2, Interesting

      The fact is that metals-based currencies are far more arbitrary in valuation of a currency than a fiat currency. Why should a currency for any nation be entirely unlinked from factors like trade surpluses/deficits, GDP, interest rates and the like? What is it about gold that makes it so great for pegging a currency to? Saying "gold-backed is better" is really just picking an arbitrary element, giving it an arbitrary value, and somehow that is supposed to be a good way to value a currency?

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    2. Re:Not just bitcoin by MightyMartian · · Score: 4, Interesting

      It does not have an intrinsic value that makes it worth weighting an entire currency on, and it is, in fact, rather vulnerable to price collapses itself. Both gold and silver have been witness to significant depreciation events, such as when the Chinese Empire began bleeding its silver reserves in the 18th and 19th century.

      Metal-based currencies are no panacea, and are highly inflexible, and worst of all, don't do anything to stave off worst case scenarios like recessions and depressions.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
  2. I love when companies do this by Anonymous Coward · · Score: 2, Interesting

    But then when the money gains back value, the prices don't drop

  3. Re:resistance is futile by unixisc · · Score: 3, Interesting

    The EU was fine as the EEC - European Economic Community. It got ruined when Chancellor Kohl and President Mitterand tried to perfect what was already good enough, and make it into a more political union. The Eurozone sounded like a great idea, except that the Deutschmark was no way the same as the Drachma or the Lira. End result is a currency that is dominated by one member, and that member taking the economic hits of all the populist moves of countries like Greece and Portugal

  4. Re:Something's fishy by Anonymous Coward · · Score: 5, Interesting

    I must add that this is an excellent point. Despite higher costs for imported raw materials, the drop in Sterling is working wonders for the UK manufacturing sector. Politicians on the left and right have argued and clamoured for a "rebalancing of the economy", i.e. boosting manufacturing; now they have it. Don't believe me? Read the UK's latest PMI report (https://www.markiteconomics.com/Survey/PressRelease.mvc/f55855e5e87b4e9dadc0e3cbea1c285f). To quote: "The weak sterling exchange rate remained the prime growth engine, driving higher new orders from Asia, Europe, the USA and a number of emerging markets."

    Besides, those of us who read the financial press (as I do) will be well aware the central banks have long complained of needing a currency devaluation and a bit more inflation to help western economies. Britain has, quite inadvertently, achieved precisely this.

    Rule Britannia? :-)