Metaphorically Speaking – Edition 62 – Important Change to the Pricing for Microsoft Dynamics NAV User Licences and Granules

In this edition we want to let you know about an important and imminent change to the pricing for Microsoft Dynamics NAV user licences and granules. 

From 1 July, the cost of buying NAV will rise by around 20%.  Microsoft will publish prices in due course and we will provide these to you, but for now we would like to give you more about the ‘why’ rather than the ‘what’.

Essentially Microsoft has identified a major risk in its trading model – the fluctuation in exchange rates across the Euro-zone.  Most global software companies have one master price list in their home currency and reset price lists in other currencies every year or even every quarter using then-current exchange rates.

Microsoft has always taken a different approach, having set €, £ and other prices in 2001 they have continued to use the same exchange rate ever since.

From 1 July, Microsoft will reset Swiss Franc and Pounds Sterling prices to align with € prices, based on exchange rates at the time.  Microsoft will keep the prices aligned in the future by adjusting for subsequent exchange rate movements.

The immediate effect is that £ prices will rise by about 20%, Swiss Franc prices will fall by the same amount (subject of course to what happens in the currency markets between now and then).

In the short term what this means is that if you are planning to buy users then time is of the essence – after June you will pay a one-off higher fee for the licence and a perpetually higher fee for annual support.  For a balanced view of the changes and their effects please see the blog entry below – an article we feel fairly describes the position.

http://blogs.forrester.com/duncan_jones/12-02-27-microsoft_aligns_its_uk_swiss_pricing_with_the_rest_of_europe_but_not_alas_with_us

So, if you are thinking about buying users or granules in the near future, please contact your account manager so that we can give you a view of the likely price differential.  We can help you get the best value from your next Dynamics NAV purchase.

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