Microsoft has reiterated to Azure customers that prices will
go up by 22 per cent from January 1st.
The problem? The price rise is far greater than any exchange rate post-Brexit fluctuations might justify. Microsoft’s biggest European data centre is in Dublin, a member of the Euro currency. The Euro hovered around €1.28 to one pound for the first six months of the year, before crashing after Brexit. It’s now €1.19, a depreciation of just 9 cents, or 7 per cent.
The value of the British pound has weakened more dramatically against the US dollar, dropping by 18.9 per cent since 24 June - the day after Brits voted to leave the EU.
For new Office or Azure cloud customers in the UK, no exchange rate can justify any price rise at all. In September, Microsoft made Azure available in UK data centres.