Microsoft India announces price hike of software and online Services by 6%

Technology giant Microsoft has announced a hike in prices of its commercial on-premises software and online services by 6%, effective from February 1 in India. This includes Microsoft 365 and Dynamics 365, and it marks Microsoft India’s third consecutive year of price increase amid a challenging global economic pressure. The move is to apparently align pricing between India and the Asian region.   

“Starting February 1, 2024, Indian rupee prices for commercial on-premises software will increase by 6%, online services will also increase by 6% to realign close to prevailing USD pricing levels in the Asian region,” the statement said.  

“On Microsoft.com, revised Indian rupee prices for direct sales to India based customers for a select set of online services such as Microsoft 365, and Dynamics 365 will be reflected as of February 1, 2024.  For business customers, these changes will not affect existing orders under volume licensing agreements for products that are subject to price protection,” it added. 

In response to a notable uptick in adoption among small and medium-sized enterprises (SMEs) during the pandemic, Microsoft India implemented a 20% price increase in February 2022. This marked the first rate hike in almost a decade. 

Following this adjustment, in February of the current year, an additional 11% increase in prices occurred. This move reflects Microsoft's strategic emphasis on capitalizing on its expanded user base in India, particularly in the face of global economic challenges and a deceleration in cloud adoption trends.