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Microsoft Raises UK Prices By a Third and Can't Rule Out Future Hikes 185

Posted by timothy
from the such-small-portions dept.
New submitter DerekduPreez writes "Microsoft has revealed that it will increase volume licencing prices in the UK by an average of 29 percent to adjust for the 'sustained currency differences between European countries'. UK businesses have until 1st July to place their orders under the current prices before the changes take effect. Microsoft claims that because of sustained differences between the British Pound and the Euro, price spikes are necessary to maintain consistency across the region. Microsoft also confirmed that it could not rule out future increases, as it will continue to monitor currency movements and may make further adjustments if there are large fluctuations."
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Microsoft Raises UK Prices By a Third and Can't Rule Out Future Hikes

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  • from an already vulnerable economy. Maybe this will finally spur open source platforms such as Linux.
    • Sorry... No it isn't.
      In the grand scheme of things license cost is just a drop in the bucket. Also the license cost for most of the products are absorbed in the cost of the equipment.
      If it was just license price was the major issue Linux would have regained massive market share when Windows XP came out.

      • by na1led (1030470)
        I don't know where you get your figures from, but at our company, licensing fees are a huge deal. With hundreds of employees, licensing can far outcost any hardware we purchase. An increase in 30% license fee is an enormous jump. Our company pays very large annual license fees that cost nearly $100k,
  • Got yea [channelregister.co.uk] by the balls, now pay up or sing soprano.
  • Meh! (Score:3, Interesting)

    by Polizei (1782856) on Thursday May 03, 2012 @09:11AM (#39877509) Homepage
    So, M$ are urging people to order, respectively buy Win7's 'till 1st of July, so they can release Win8 in August...
    Nice!
  • This is a pretty obscure outcome of the recent Quantitative Easing of the Fed and the Bank of England, and a little confusing as Microsoft is a US company.

    You have to remember that Microsoft's main European headquarters is in Dublin in Ireland, and hence operates in Euros. The quantitative easing of the pound means that the UK goods become cheaper to export, and that conversely, it becomes more expensive for UK-ians to import good from abroad. In this case, it has become 33% more expensive for them to impor

    • by Albanach (527650)

      This is a pretty obscure outcome of the recent Quantitative Easing of the Fed and the Bank of England, and a little confusing as Microsoft is a US company.

      You have to remember that Microsoft's main European headquarters is in Dublin in Ireland, and hence operates in Euros. The quantitative easing of the pound means that the UK goods become cheaper to export, and that conversely, it becomes more expensive for UK-ians to import good from abroad. In this case, it has become 33% more expensive for them to impor

    • by master811 (874700)

      This is a pretty obscure outcome of the recent Quantitative Easing of the Fed and the Bank of England, and a little confusing as Microsoft is a US company.

      You have to remember that Microsoft's main European headquarters is in Dublin in Ireland, and hence operates in Euros. The quantitative easing of the pound means that the UK goods become cheaper to export, and that conversely, it becomes more expensive for UK-ians to import good from abroad. In this case, it has become 33% more expensive for them to import MS software from Ireland.

      You have it completely the wrong way around as this has nothing to do with quantitative easing as the Pound is currently stronger against the Euro than at any point in the last few years. This would make imports CHEAPER, and hence exports more expensive to Europe. Now if they were dealing with USD, then that is another matter entirely as the Pound is still relatively weak against it compared to what it was a few years ago.

    • Which raises the question: Why should Microsoft continue to choose Dublin

      If I'm not mistaken, Dublin is a major Tax Haven for large corporations.

    • by digitig (1056110)

      Which raises the question: Why should Microsoft continue to choose Dublin as their main European base of operations if this is the kind of price hikes they will be forced to impose on perhaps their single largest European market?

      Why on Earth would the UK be Microsoft's single largest European market? What do you think they use in France, Germany, the Netherlands and so on?

    • Getting the euro in the first place was a mistake for some in the Euro-periphery, but getting out of it now and re-adopting a floating currency (otherwise, what's the point in getting out) is about the worst possible course of action: you can't do overnight, and people will try to withdraw/send overseas all of their money as soon as possible. Assuming the banks have that much money (which is debatable), massive capital flight and black market are not exactly great solutions to any economy. Governments could
    • You are assuming that there is some actual rational behind the price hike other than greed.

      I don't think that Microsoft is 'importing' volume licensing from anywhere. They're raising prices because they can, nothing more. The rest is bullshit.

    • by chrb (1083577)

      Double Irish and Dutch Sandwich [wikipedia.org]

      That is only reason why Apple, Google, Facebook, Microsoft, Oracle etc. all have their international headquarters in Dublin.

      Will it continue? Who knows...

    • by Patch86 (1465427)

      If they can only get an expensive, high tax centre pegged to the Deutschmark, they'll just move to London, or York, or whatever.

      Completely aside, it tickles me that you would pick York (pop. 200,000, 80th largest city in the UK) as second choice to London (pop. 8 to 14 million, depending what you're counting). Sometimes I think New York, New York has done more to raise the profile of that town to foreigners than a thousand Visit England advertising campaigns.

  • Are their any good online resources for rolling out Linux clients on a Windows domain? Mint, Ubuntu, Fedora, anything... I'm not particular familiar with any distro, so learning to administer any of them would be of benefit. I've no real need to use MS products in my environment, and am just aching for an excuse to switch.

    Maybe by the time the switch is complete, OD will match AD in functionality. Win-win.
    • by h4rr4r (612664)

      These days it is just easier to use Likewise Open.
      It will do everything for you.

      Before bothering with that though, setup a vm and learn about the distro you want to use. Learn about automation of updates, locking down the desktop etc, before you even bother with AD stuff.

      • No VM necessary; I have Mint 11 as my desktop OS, just not linked to the domain. I've no great need to move away from it; It does what I need it to.

        I guess learning about the other stuff comes from reading the documentation... Always a thrill! Thanks for your post.
    • Why stick with a MS product as the core? look at Zentyal, which among other things, acts as a PDC in an easy to setup and configure way. There is no group policy (yet, samba 4 is due in zentyal 3.0) but you can push login scripts.

      • by h4rr4r (612664)

        Or just use something like puppet. Group policy was a great design for its time, and for what it was working with. For an OS that does not have windows limitations with writing to open files and such, things can be done much more on the fly.

    • by ratboy666 (104074)

      Indeed.

      I know how to install a Linux server in an AD domain, but proper Linux clients these days?

      Confuses me.

      Windows doesn't do the "Unixy" stuff, so we maintain a separate sub-net with NIS, NFS and the other Unixy stuff. But I have no idea how to "log in" to the Windows AD domain. Some magic, obviously. And, after that login, SMB file shares should somehow be mapped -- if the pushed AD information can be made available, it could be parsed for the mount details.

      This would certainly make my life much easier.

      • You can mount SMB shares like any other kind of network shares, using mount (they aren't dependent of AD). You'll probably use CIFS, as last time I looked, SMBFS was deprecated. There is a FUSE drive for that, so you can mount as a normal user (as always, KDE will mount it for you if you are using it).

        Well, I have no idea how to replace NIS with AD, as I never had to do that. Samba 4 may help you, or not.

        • by afidel (530433)
          Just use Kerberos for authentication, MS has their own dialect but the Linux libraries can all handle it at this point.
    • by Hatta (162192)

      I just pass Samba the 'domain' option in my fstab to mount shares and ignore the rest of the AD crap.

  • by Builder (103701) on Thursday May 03, 2012 @10:06AM (#39877843)

    What does the relationship between the Euro and the Pound have to a supplier based in the USA who trades in dollars ?

    Looking at http://www.x-rates.com/d/GBP/USD/graph120.html [x-rates.com] , the pound has been very close to the dollar for quite a while now. They're both weakening on the global markets, but they're keeping pretty good pace with each other.

    • by bazorg (911295)

      For the European market, Microsoft is headquartered in Ireland and is a company that trades in Euro.

  • Microsoft Exec 1: Our fiscal year is ending on June 30 and our revenue is barely larger than it was last year! What can we do to get more money?
    Microsoft Exec 2: We could raise the price of our most successful product!
    Microsoft Exec 1: I don't know - then we risk people switching over to Macs or Linux.
    Microsoft Exec 3: What if we raise the price of Windows in just a single country?!
    Microsoft Exec 1: I love it! The only question is which country should we raise the price? Which country has been the bi
  • Over here we buy our licenses in USD. Why the inconsistency?

  • Well, it's always been $1 = £1

    So now it's €1 = £1 as well.

  • by SYSS Mouse (694626) on Thursday May 03, 2012 @10:23AM (#39877995) Homepage

    This price increase is a measure against http://en.wikipedia.org/wiki/Grey_market [wikipedia.org]

    Two years ago 1 Pound = 1.5 Euro, now it is 1.3 Euro. http://finance.yahoo.com/echarts?s=GBPEUR%3DX [yahoo.com]
      MS is increasing the price in GB so that M$ price is around the same in Europe zone.

    • by rb12345 (1170423)
      That's miles out. Back in 2007, it *was* around €1.50/£-ish. By 2009-ish, that had dropped to around €1.10/£ - far worse than today, and since then the pound has strengthened again to ~€1.22/£.
    • by Solandri (704621)
      And if the GBP goes back up to 1.5 Euro, they'll fix it by lowering the price again, right? No? Whaddaya mean it needs to be fixed by raising the price in Euros?
    • I'll believe the price increases are due to currency and economy shifts, and not "because we can", when they lower the Australian prices by about 60%.The Australian dollar is fluctuating a few cents either side of the US one, depending on numerous factors like the colour of our respective head of states' underwear each day, yet the prices seem even slightly higher than they were when AU$1 = US$0.50.

  • Looking at the currency conversion chart over the last 5 years [imgur.com] (note axis doesn't start at 0) you can see that MS is getting less dollar or Euro for each £1 GBP in income. The chart appears to show an initially fairly steady exchange giving, for every £1, around abouts $2 or €1.30, which has since dropped to around $1.60 (down 25%) or €1.20 (down 8%).

    Now look at the second chart on that link. We can see that over the 10 year period the 8% drop in the amount of Euros being obtained for

  • By that logic we wouldn't need a price gouging inquiry [slashdot.org] in Australia.

    The $AU has been at parity with the $US or above for years now - but Australians are still paying massively over the top prices compared to their American counterparts.

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