Microsoft hiking prices for UK firms after sterling collapse
Microsoft is hiking prices for British businesses by as much as 22% as a direct result of the collapse in sterling following the EU referendum.
The tech giant announced in a blog post that it would be raising fees for its UK business clients in order to "realign close to euro levels," and harmonise prices across the EU.
"We periodically assess the impact of local pricing of our products and services to ensure there is reasonable alignment across the region and this change is an outcome of this assessment," Microsoft said.
While enterprise software prices will increase by 13%, cloud prices will jump by as much as 22% for clients paying in pounds.
Price hikes will come into effect on January 1 2017. Consumer prices will not be affected.
The decision comes after a dramatic slide in the value of the pound.
Sterling has fallen nearly 15% against the euro since the EU referendum, when it stood at 1.31. The pound is now worth 1.12 euros.
The company made similar moves to adjust for exchange rates of the Norwegian krone and the Swiss franc back in April, according to Microsoft's blog post.
Microsoft is the latest business to announce price hikes for British clients.
Earlier this month, Tesco and Unilever became locked in a high-profile Mexican stand-off over a potential 10% price hike on products including Marmite and Persil, linked to the collapse in sterling
Unilever later said the dispute had been resolved, but warned that consumers would still have to stomach more pain in the new year.
Upmarket London popcorn brand Joe & Seph's also warned that it may start passing on costs to consumers amid a prices spike in butter, corn and chocolate imports.
Microsoft stressed that its enterprise prices would still be reasonable after the hike.
"Even after this adjustment, customers across the region buying in British pound will still find our cloud offerings highly competitive," Microsoft said.