- Microsoft is adopting exchange rate controls once a year, not twice a year
- Many commercial products experienced price increases due to artificial intelligence and security.
- Other recent changes could add to major price changes
In a bid to make pricing more predictable for customers and partners, Microsoft is abandoning its current semi-annual exchange rate review to once a year for many of its cloud business lines.
The change would reduce the frequency of unexpected price changes for organizations on services like Microsoft 365, Office 365, Dynamics 365, and more.
It marks a change from the regular exchange rate controls that Microsoft had previously introduced, citing the need to keep local prices aligned with dollar prices.
Microsoft will review exchange rates once a year, not twice, in the future
In early 2026, Microsoft’s European customers were greeted with a 7.4% price reduction as a result of the weakening dollar, but under the new policy, customers would expect fewer hotfixes and, if the dollar continued to weaken, higher costs.
However, at the same time, Microsoft is raising prices on several commercial licenses due to additional AI capabilities, new security features, and more. Since July 1, many customers have seen costs increase by up to 33% in the most severe cases, but some services like Office 365 E1 have remained unchanged.
While existing subscriptions are generally protected until renewal, customers nearing the end of their contracts could face substantial changes as the two pricing adjustments come into play.
Recognizing that geopolitical uncertainty can cause currency values to fluctuate dramatically, the company added that it may make one-time changes outside of the annual review period “in limited exceptional circumstances.”
But since the company previously eliminated volume discounts on certain lines, some customers could face some pretty significant price changes in 2026, leaving them wondering if next year could be more or less the same.
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