Microsoft and IBM set to raise cloud prices

Microsoft and IBM set to raise cloud prices

Microsoft has announced it is to raise the price of its cloud computing offering, ending a prolonged period of competitive price-cutting.

The move will affect a number of digital firms using Microsoft's Azure cloud system.

According to Dublin-based blogger Aiden Finn, who is also a Microsoft-focused consultant, the cost of the service will rise for Eurozone customers by 13 per cent from August 1st.

Reports have suggested the ongoing crisis in Greece has understandably affected sentiment towards the overall economy of Europe, although Mr Finn has hinted the move could also be motivated by drives to increase revenue.    

However, Microsoft told The Register earlier this week that price rises will only apply to customers in the European Union and the European Free Trade Association, but not the UK.

A spokesman told the news provider that the company "continues to evaluate the market conditions in the countries in which we operate. As a result, we will be adjusting the prices for the company’s enterprise cloud services in Australia, starting August 1st 2015.”

“Cloud prices are being revised for new and renewing contracts billed in euro, Danish krone, Norwegian krone, Swedish krona, Canadian dollar and Australian dollar,“ Microsoft told The Register.

“Until July 31 2015 customers can continue to acquire Microsoft cloud products at current prices, as well as renew licensing agreements at current prices before the adjustment.”

Meanwhile, IBM took to its blog last week to announce a changes in the cost of its SoftLayer cloud platform.

The company claims many of the changes will see customer pay less for the service, with one configuration, which uses an Intel dual Xeo 2620 processor with 8GB of RAM seeing a 39 per cent discount.

However, customers using the company's entry-level Virtual Server Instance in SoftLayer could see hefty rises.

Previously, customers had paid $35 (£22.67) per 5TB of outbound bandwidth, but now face getting just 250GB for the same amount of money, with the charge for 5TB of outbound bandwidth now $615.