Housing associations facing 300% Microsoft software price hike

Published by Max Salsbury for 24dash.com in Housing and also in Finance

Housing associations are facing a dramatic rise in the cost of Microsoft software products – which could see prices rise by 300%.

From 30 September, specialist charities such as housing associations will lose their voluntary status and will be reclassified under the public sector licensing agreement.

Microsoft’s licensing changes mean that organisations will only qualify for academic-level discounts if they receive over 10% of their revenue from donations.

However, organisations that receive the majority of their funding from public sector contracting will see prices rise by up to four times.

In a statement, Microsoft said: “Microsoft's new discount frameworks recognise the increasing importance of the UK’s 70,000 social enterprises in driving public services. 

“The new frameworks for social enterprises complement the discounts and free options already available to 174,000 UK charities, as well as public sector organisations and public sector mutuals. 

“Charitable organisations and social enterprises looking to buy new technologies from Microsoft will be entitled to different levels of discount depending on their levels of voluntary contribution or how they generate their revenue, if applicable."

Microsoft’s products run through the core of many modern organisations' IT systems. Most desktop PC users will use the company’s Windows operating system and its Office software programs such as Word and Excel.