Clients will appreciate that Kinetics has kept it’s hourly rates and support costs flat for a number of years. It’s getting increasingly hard to do that under the pressure of increased salaries and input costs. We’ll continue to keep maintain pricing as long as we can, although we will need to make a small adjustment in the next few months.
However, we can’t control costs of items like software licensing. We can only guess that the fall in the NZ$ compared to the US$ is impacting all suppliers and we will have to pass this on when it comes through.
Microsoft are putting up their prices
They recently increased the cost of non-cloud products by 10% and that’s now being reflected in the cloud editions as well. We understand this effects both Office365 and Azure, and ‘consumer’ prices have already increased.
Here is their announcement:
October 26, 2018 — Microsoft is announcing New Zealand dollar pricelist changes to harmonise its global prices for online services effective December 1, 2018. Microsoft periodically assesses the impact of its local pricing of products and services to ensure there is reasonable alignment across the region and this change is an outcome of this assessment. This pricing change will not apply to consumer software or consumer cloud services.
Starting December 1, 2018 New Zealand dollar prices for commercial online services, including Azure, will increase by up to 9% to realign close to US prices for commercial online services. On-premises commercial software prices will remain unchanged. Customers across the region buying in New Zealand dollar will continue to find Microsoft cloud offerings highly competitive.