Microsoft plans to hike Azure cloud computing service pricing in South Africa by a massive 23.1% next month following a sharp fall in the value of the rand.

In an e-mail to customers seen by TechCentral, Microsoft said it will hike prices for Azure pay-as-you-go customers effective from 16 October 2018.

“Microsoft periodically assesses the impact of its local pricing of products and services to ensure there is alignment across regions and markets. Our October 2018 Azure price change is an outcome of this assessment,” the company said in the customer e-mail.

“Microsoft will adjust prices for pay-as-you-go subscriptions on the Azure website available under the Microsoft online services agreement and denominated in South African rand,” it said. “Effective from Tuesday, 16 October 2018, Azure prices will increase (in) South African rand by 23.1% to realign to global price levels.”

The price increases do not apply to certain channel partners as Microsoft does not bill to these partners in local currency, it said.

The price increases come just months ahead of Microsoft’s planned launch of two new Azure data centres in South Africa, one in Johannesburg and the other in Cape Town. The two facilities are the first data centres that Microsoft has built in the country. — © 2018 NewsCentral Media