Microsoft has increased prices for its Azure cloud computing platform in Australia as a result of a decline in the value of the Australian dollar. The move flies in the face of recent trends, which have seen a virtual price war between the key cloud providers, with cloud prices plummeting as a result. Microsoft increased prices in Australia by an enormous 26% and the move could negate one the key benefits for Australian companies moving to the cloud – reduced costs.
Microsoft’s move was a result of a sharp decrease in the Australian dollar over recent months. At the time of the price increase, the Australian dollar was worth just 73 cents – down from 93 US cents one year ago. Speculation is rife that a further decrease is in the offing, with American multinational investment banking firm Goldman Sachs forecasting it could go down to 67 cents over the next year. Microsoft’s new pricing does not impact the company’s licensing agreements, but does impact new (or renewed) contracts.
The move does not, however, reflect from Microsoft’s stated policy of matching the prices of rivals such as AWS. "For storage and networking and some of the components we have a price match guarantee – if Amazon drops their price then so do we," suggested Microsoft Azure’s Corporate Vice President, Jason Zander in a statement. But with Azure services in Australia relatively new, the price increase has some analysts questioning the move when AWS is able to maintain its current pricing.
Do you think the cloud wars will continue, or will prices begin to edge upward? Give us your opinions. Add your comments below.
