70-412-Study-Guide: October 2016

Microsoft is increasing its prices by up to 22pc in the UK due to the recent decline of the pound, an increase that is likely to affect thousands of businesses and could cost tens of government of millions of pounds.

The software giant is the latest big name company to force a place prices after the referendum, saying the move would "harmonize" their prices across Europe.

The value of sterling against the dollar, which books revenue Microsoft, declined by about 18pc from the EU referendum June 23

Microsoft's decision comes after giant Unilever Consumer Goods tried to convey a price increase 10pc to British supermarkets, a move that has led to a standstill with Tesco, giving rise to what has been called "Marmitegate" a period of 24 hours during which many Unilever products have disappeared from the online store retailer.
Nestle CEO Paul Bulcke said last week it was considering a number of options to mitigate the fall of the pound, as the rising prices of their products, including KitKat and Nescafé, and reduce costs.

Mark Carney, Governor of the Bank of England, said food prices were likely to be affected by rising inflation after the fall of the pound sterling.

Costs for enterprise customers Microsoft will increase by 13pc to 22pc of software and cloud services in the so-called line, where the company hosts the customer data in a virtual repository.

Microsoft is one of the largest providers of business software in the UK, led by its set of Office programs such as Word, PowerPoint and Outlook. His service in the cloud, Azure, sells access to computing power and is used by customers, including the Department of Defense.

The price increase will take effect early next year, could cost tens of millions of government pounds a year.

While the Cabinet Office has not commented on how it goes in the Microsoft contract, which is supposed to be at least £ 100 million a year.

The expected price increase comes at a bad time for the government as a major effort to Whitehall to reduce IT costs through a wider lens on the cost of public service.

The price increase will apply to new purchases, instead of current contracts, and Microsoft said it would not increase prices for consumers.

However, the increase is likely a blow to companies that may have to increase IT budgets or sacrifice other projects to pay the higher rates.

In their accounts, Microsoft does not eliminate the income from the UK, but is believed to amount to billions of pounds each year.

Last week, the technology giant based in Seattle reported quarterly sales of $ 20.5 billion (£ 16.8 billion).

Softcat, the British team retailer, said last week it had seen several foreign suppliers to raise prices, was forced to pass on to consumers.

Microsoft has said what he calls "uniformity adjustments" were similar to those made to prices in Norway and Switzerland, following the movements of the crown and the Swiss franc earlier this year.

A spokesman for the Cabinet Office said. "We are constantly monitoring the market and the prices of suppliers to ensure the best value for our customers and the taxpayer When we are aware of the changes proposed price, we will work closely together with the supplier to identify ways to mitigate increases prices ".

70-412-Study-Guide

Sunday 23 October 2016

Microsoft to raise prices by up to 22pc after slump in pound

Thursday 20 October 2016

70-412 Exam Question No 60