A cost-management consultancy has warned law firms of a pending price increase in Microsoft user licences from 1st July. Microsoft 365, Dynamics 365 and Power Platform will all see price increases, Jason Adderley of ERA Group warns.
Typical price increases for Enterprise solutions will be between 5% and 13%, Business from 12% to 17% and Frontline up to 33%.
Adderley said: “Even small per-user uplifts can translate into material cost increases at scale. When reviewing costs clients regularly find instances of unused licences, over licensing or legacy configurations.”
The drivers behind Microsoft’s decision to increase prices are varied and include rapid growth in the investment for cloud services and AI capability, a periodic alignment of global pricing structures and changes to subscription and billing models, Adderley explained. He anticipates most law firms will be affected.
Adderley has worked with legal and professional services practices for over 15 years offering project-based cost reviews, or reviews of a firm’s entire non-salary overhead. He estimates he and his team had saved firms tens of millions of pounds and assisted several firms in pre-merger due diligence and post-merger integration.
“With a deadline of 1st July the clock really is ticking if firms wish to avoid price increases”, he warned. “Fortunately, even though the window is closing firms still have time understand their exposure and take advice on what to do about it. Very often licensing costs are passed through by a firm’s managed service provider so an independent perspective can be vital.”
