Volume Licensing Pricing Policy Change

6 Feb

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Beginning in July, Microsoft is unifying its volume licensing pricing policy in the European Union/European Free Trade Association (EU/EFTA) region so that the prices charged to partners will be based on the location of the partner’s channel agreement.  Also, due to sustained currency divergence among the British Pound (GBP), the Swiss Franc (CHF) and the Euro, prices in the UK and Switzerland are expected to change based on the prevailing currency exchange rate.

Microsoft believes these changes help bring long term price consistency across Europe, which can provide clear and equitable pricing for our customers and partners.

As trusted partners of Microsoft, and trusted advisors for our mutual customers, we are announcing this now to give you time to prepare for these changes:

1. Pricing Based on Partner Location

Where products are sold through partners in the EU/EFTA region, Microsoft is unifying its volume licensing pricing policy so that the price charged to partners will be based on the location of the partner’s Microsoft Channel Agreement.  Partners will continue to determine final pricing and currency of sale to customers.  Partners may need to:

· Upgrade systems and processes to consume the Partner Location change.

· Continue to manage existing customer agreements with To-Partner pricing based on Customer Location.

2. Expected Price Changes in the UK and Switzerland

Due to sustained currency divergence between EU/EFTA countries that use the Euro and those that do not, Microsoft is establishing price alignment for volume licensing customers in the region.  Whereas most EU/EFTA countries’ currencies are already closely aligned to the Euro, based on the currency exchange rates as of January 2012, we anticipate the following:

· Increase in prices in the UK.

· Decrease in prices in Switzerland.

3. The Future of Microsoft Pricing in the EU/EFTA Region

Our plan is to continue to offer volume licensing in local and Euro denominations, and to periodically assess the impact of our pricing policies and make changes if necessary to maintain price consistency across the EU/EFTA Region.  This way, we can continue to provide clear and equitable pricing for our customers and partners.

Recommended Next Steps for Partners

· Work with your PAM to understand and assess if there is any impact to your systems to support the changes.

· As needed, establish a plan and implement changes in time for July.

Thank you.

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