Price adjustment for Microsoft Licensing on Strencom VDC 2.0 Cloud

As part of the annual adjustment from Microsoft on their service provider licensing agreement (SPLA) pricing, Strencom are announcing an increase in the price of the license elements of VDC 2.0 service with effect from 28th February 2019, which will be reflected in the March invoicing. While the price adjustment varies across the different licenses, on average it amounts to approximately a 10% increase in the license charge, and applies to both corporate and academic programs. This increase does not apply to the compute or networking elements of the Strencom VDC 2.0 service, only to the Microsoft license portion.

To continue to remain competitive, Strencom are reducing the monthly charge for a VM from €2.50 per month to zero - this will go some way towards mitigating the Microsoft price increase. Therefore the real increase is more like 2.5% of the overall cost for a Virtual Machine running Windows Server OS.

There are hundreds of SKU's on the list, but the main licenses that are used in the Strencom VDC 2.0 are all versions of, Windows Server OS, SQL Server, Remote Desktop Services and Office.

For example, on a typical mid-sized VM running any version of Windows Server OS, and taking into account the Microsoft increase and the Strencom decrease, this will equate to a net increase of €2.50 per month or 2.5% of the overall cost for the VM. On a larger VM the same increase of €2.50 per month applies, and this will of course be a smaller percent increase of the overall cost.

Taking account of the price adjustment, Strencom remain extremely competitive against other cloud providers, including Azure, for our VDC 2.0 Cloud services, and can be as much as 40% less than Azure, while maintaining our own hosting infrastructure in Ireland, guaranteeing data sovereignty, and ISO27001 certification for information security management systems.

The rationale from Microsoft behind the price adjustment is as follows - "With significant investments in Research & Development, Microsoft continues to deliver cloud ready innovations across its infrastructure products. These product enhancements are being delivered at a faster pace so partners and customers can take advantage of the new capabilities and innovations. Additionally, Microsoft has kept SPLA pricing consistent for 24+ months for its infrastructure product offerings. Considering this, Microsoft is increasing the prices of certain infrastructure product offerings as detailed above."

In addition to this increase, our Microsoft distributor for SPLA licensing has also levied an additional monthly management charge for purchasing licenses. To continue to offer the best services at very competitve rates, and deliver value to our customers, Strencom will not adding this levy to any of our customer prices.

If you would like to see the full Microsoft Price list with all SKU's, please contact your Strencom account manager and they will send you the list.


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