This week in the UK I’ve been hearing about how our great country may lose its triple A rating. I’ve listened to business owners who are suffering from higher supply costs whilst losing custom despite not raising their prices. A 2nd recession may not be official but look around and some people are struggling.
Attending a webcast from my favourite vendor today left me slightly stunned as to the timing of their latest announcement and if they really are making decisions that will not cause more harm to their company than good.
Microsoft as many of you know are my favourite vendor. They have provided us with the groundwork to grow NCI with their products and no other company has invested in a joint relationship with such vigour. Saying that, one of the reasons the partnership works so well is if I tell them there is an issue with any part of what they do, they listen. NCI may be small fry in the big world of IT in terms of company size and turnover but Microsoft know if we say something is wrong we can prove it and normally offer a solution.
I have no solution to their latest decision other than, “don’t do it”.
The webcast today was to explain Microsofts decision to bring into line the cost of Microsoft Licensing in the UK with the Euro. Rumour had it that a price rise was going to happen but the severity of it hasn’t yet been realised by partners. Customers won’t be affected until July and Microsoft Partners won’t know by how much until potentially May but it is expected to mean a 20% to 35% rise in the cost of Microsoft Licensing in the UK.
My American friends need not worry, no changes for you (that I am aware of) and my Swiss friends, well you are actually going to see a significant price drop if all goes to plan – unfortunately I don’t have any Swiss friends so I can’t celebrate with you.
So Microsoft Corp, thank you for your official line of “We are doing it to bring all the countries in line with the Euro” It really eases the pain. You chose the right moment too, we’ll wave goodbye to AAA and join the US in our downgrade making our countries equal too (except your much bigger and have much more debt). The poor lady who made the announcements on the webcast today was so professional but you just knew she had dreaded doing it, thanks on behalf of her Corp.
I hope additional resources are being budgeted for in your piracy division, you’ll need to invest in the UK.
In conclusion there are three things that this massive price hike is going to do for Microsoft in the UK.
- speed up the process of UK businesses folding
- promote piracy
- cause grief to the staff at Microsoft UK who do a fantastic job but have to follow the company line.
Will it do any good? I’ll leave you to decide on that one.
