Microsoft India's recent announcement of a 6% price hike for its commercial on-premises software and online services, including Microsoft 365 and Dynamics 365, marks the third consecutive year of such increases in the country.
Set to take effect from February 1, 2024, this price adjustment will apply to both cloud-based products and on-premises software. However, existing purchases made by commercial clients under bulk licensing agreements will remain unaffected as they fall under price protection.
This move follows previous price hikes by Microsoft in India, reflecting the evolving landscape of its business suite offerings. Notably, in February 2022, the company implemented its first price increase in nearly a decade, with a substantial 20% hike. Subsequently, from February 2023, Microsoft raised its prices in India by 11%.
These adjustments in pricing signify Microsoft's response to the increased adoption of its services in India, especially among small and medium-sized enterprises during the pandemic. Despite the global economic slowdown and challenges in cloud adoption, the company is leveraging its growing user base in India.
In parallel, Microsoft has unveiled plans to introduce new features to its Copilot service, including support for OpenAI's latest models such as GPT-4 Turbo and an updated DALL-E 3 model. This underscores the company's commitment to advancing its AI-driven technologies and services.
(With Agency Inputs)