Microsoft is moving to annual price adjustments for its commercial cloud services — could more bill shock be on the way?

Microsoft is moving to once/year foreign exchange rate checks, not twice/year

Many commercial products saw price increases due to AI, security

Other recent changes could all add up to major price changes

In a bid to make pricing more predictable for customers and partners, Microsoft is ditching its current twice-yearly exchange rate reviewing to once-yearly for many of its commercial cloud lines.

The change would reduce the frequency of unexpected pricing changes for organizations across services like Microsoft 365, Office 365, Dynamics 365 and more.

It marks a shift from the regular exchange rate checks Microsoft had previously introduced, citing a need to keep local pricing aligned with USD pricing.

Microsoft will review exchange rates once per year, not twice, going forward

In early 2026, European Microsoft customers were greeted with a 7.4% price reduction as a result of a weakening dollar, but under the new policy, customers would expect fewer revisions and, should the dollar continue to weaken, higher costs.

However, at the same time, Microsoft is raising prices for a number of commercial licenses due to additional AI capabilities, new security features and more. From July 1, many customers saw costs rise as much as 33% in the most severe cases, but some services like Office 365 E1 remained unchanged.

While existing subscriptions are generally protected until renewal, customers approaching the end of their contracts could face substantial changes as the two price tweaks come into play.

Acknowledging that geopolitical uncertainty can fluctuate currency values drastically, the company added that it could make one-time changes outside of the once-yearly revision period "in limited exceptional circumstances."

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But with the company previously removing volume discounts on certain lines, some customers could be facing some pretty significant price changes in 2026, leaving them wondering if next year could be much of the same.

Via The Register

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!