From fiscal year 2026 (1 July 2026) Microsoft is switching to an annual currency revision of local list prices for Commercial Cloud: adjustments will now take place once a year, on 1 January, with a notification each November. The next adjustment applies from 1 January 2027. For Dutch organisations buying Microsoft 365, Dynamics 365 and Power Platform in euros, the planning window shifts to November–January. The renewal date determines when you capture a reduction or lock in an increase.
What is actually happening
Microsoft has announced a change to how it adjusts local-currency prices for its Commercial Cloud. According to the official Partner Center announcement: beginning with the fiscal year that starts on 1 July 2026, Microsoft will switch to annual revision of local-currency prices, each time on 1 January, "providing customers with greater pricing predictability while continuing to account for sustained fluctuations in foreign exchange rates". The next adjustment becomes effective on 1 January 2027 and recurs annually on that date thereafter, "except in limited exceptional circumstances". Advance notifications with guidance on the coming year's price update will be issued each November. Product-specific and consumer price adjustments are communicated separately. (Level A — primary source.)
This is a change of cadence, not of method. Microsoft pegs local list prices to a USD reference and periodically corrects for exchange-rate movements to keep prices aligned worldwide. Until now this followed a semi-annual process — twice a year, at least since 2024. That six-monthly rhythm is now being replaced by a single annual moment. (Level A — 2024 primary source; confirmed by independent reporting.)
The last adjustment under the old, semi-annual regime took place on 1 February 2026. According to communications from Microsoft partners and resellers, EUR list prices for Commercial Cloud were then reduced by 7.4%, alongside the Swiss franc (CHF), Danish krone (DKK), Norwegian krone (NOK) and Swedish krona (SEK), as a correction for a weaker US dollar. (Level A for the existence of the adjustment; the exact percentage comes from partner/reseller communication, not from a Microsoft publication we verified ourselves — see "What remains uncertain".)
Structural drivers
The core is the trade-off between predictability and FX exposure. Microsoft accounts internally in dollars and keeps local prices pegged to that; customers pay in euros. Under a semi-annual correction, a currency movement fed through into the EUR price within six months. Under an annual correction, the EUR list price is now fixed for a full calendar year between two revision moments — except in unspecified "exceptional circumstances".
That extension cuts both ways. If the euro moves favourably against the dollar, you only benefit at the next January revision rather than mid-year. If the euro weakens, any increase is also locked for a full year — with potentially less scope for interim upward correction. Independent reporting notes that the undefined "exceptional circumstances" leave Microsoft room to intervene in the event of large swings; exactly what qualifies has not been published. (Level C — interpretation.)
In the background, Microsoft's licensing and cloud pricing practices are under legal scrutiny in the EU. The cadence change itself, however, is a pricing mechanism, not a competition ruling; refer legal interpretation to your own compliance/legal function.
Who is directly affected
Directly relevant is the cadence change for Dutch organisations buying Commercial Cloud services in euros: Microsoft 365, Dynamics 365 and Power Platform. For this category, the moment at which the EUR list price can change shifts to once a year (1 January), with November as the notification moment.
Probably not directly affected by this mechanism:
- On-premises software. According to reseller communication, on-premises prices remained unchanged in the February 2026 round; the currency adjustment concerns cloud. (Condition: this can vary per announcement — Microsoft has applied on-premises corrections in specific markets in earlier rounds.)
- Azure consumption priced in USD via a Microsoft Customer Agreement (MCA) or the Cloud Solution Provider (CSP) programme. According to reseller communication, those Azure services are priced in dollars globally and the local exchange rate is set monthly as before — so not according to the annual January cadence. Note: this means no protection, but a different mechanism (monthly EUR/USD conversion).
According to that communication, existing subscriptions retain their price until the renewal date; the adjustment is not retroactive and applies to new purchases and renewals on or after the effective date. So those with a multi-year or annual commitment generally keep the price until renewal — but are affected at renewal.
The second-order effect
The direct event (annual instead of semi-annual revision) has a derived effect via the renewal calendar and the EUR/USD rate.
Direct event → first order: the correction moment shifts to 1 January → second order: renewal timing becomes more decisive for your effective price → condition: EUR/USD moves towards the November benchmark moment → indicator: the EUR/USD trend and Microsoft's November announcement.
More concretely: if the dollar could strengthen during 2026 (euro weaker), the revision on 1 January 2027 could raise EUR list prices — and that increase would then be locked for a full year, with limited scope for interim downward correction. This scenario becomes more plausible the more the euro structurally weakens towards the November 2026 benchmark moment. Conversely: if the dollar stays weak, January 2027 could bring another reduction, but only at that fixed annual moment.
The volume and behavioural effect (accelerated renewal, deferral, renegotiation) is not stated in the source and depends on your renewal calendar, contract form and risk appetite. So do not present this as an established outcome.
Dutch procurement impact
Cloud and SaaS licences are, for almost every Dutch organisation — industry, energy, agri-food, high-tech, public sector — one of the largest and fastest-growing indirect spend categories. Within that, Microsoft 365, Dynamics 365 and Power Platform often form a core block in euros. The cadence change therefore affects the contract and budget side, not security of supply.
Renewal timing and contract calendar
Because existing subscriptions retain their price until renewal and the list price now moves only on 1 January, the renewal date becomes the pivot. Subscriptions that renew just after 1 January 2027 capture the then-applicable (new) price; those that renew shortly before lock in the old price for another term. Map which SKUs renew when relative to 1 January 2027.
Pass-through by CSP/reseller (margin check)
A EUR reduction from Microsoft does not automatically mean an equally large reduction on your invoice: in the CSP channel the partner sets its own margin and the price fixed at order/renewal. Have your CSP/LSP confirm in writing whether and how the February 2026 reduction (reported as −7.4% EUR) was passed through to your SKUs, and how future January adjustments will be processed. This is a classic claim/pass-through point.
Handle Azure USD exposure separately
For Azure consumption under MCA/CSP priced in dollars, a different mechanism applies: monthly EUR/USD conversion rather than the annual January cadence. Treat this exposure separately from your M365/Dynamics lines and discuss with finance whether EUR versus USD billing and any hedging suit your consumption profile.
Budget and FX assumption
Explicitly record in your budget assumption which EUR/USD assumption you use and that the EUR list price is now fixed between two January moments. Set the November announcement as a fixed item in the planning cycle.
Negotiation and warroom
Use the November signal as a preparation moment for renewal negotiations due early next year: request price validity, volume certainty and transparent pass-through of the currency adjustment before you lock in a term.
What is established and what remains uncertain
What is established
- From fiscal year 2026 (1 July 2026) Microsoft switches to annual local-currency price updates, on 1 January; the first is 1 January 2027, with a notification each November. (Primary source.)
- The previous regime was semi-annual (twice a year, since at least 2024). (Primary source + independent confirmation.)
- On 1 February 2026 the last semi-annual adjustment took place; it involved, among others, EUR (and CHF, DKK, NOK, SEK) as a correction for a weaker dollar. (Existence confirmed; percentage from partner communication.)
What remains uncertain
- The exact percentage of the February 2026 EUR reduction (7.4% according to partners/resellers) has not been traced to a Microsoft publication we consulted directly; percentages per SKU may also vary due to rounding. (Level C on the exact figure.)
- What Microsoft means by "limited exceptional circumstances" that justify an interim adjustment has not been published.
- The direction of the adjustment on 1 January 2027 depends entirely on the EUR/USD development towards November 2026 and cannot be predicted.
What to watch (measurable indicators): the EUR/USD rate development in 2026; Microsoft's November 2026 announcement via your Partner Center/CSP; your own renewal dates around 1 January 2027; the price passed through on your invoice versus the announced list price.
What you can do now
- This month — Have your IT asset/licence management produce an overview of all Commercial Cloud subscriptions (M365, Dynamics 365, Power Platform) with renewal date and term, and flag which renew around 1 January 2027. Then decide per contract whether renewal timing needs adjustment.
- This quarter — Ask your CSP/LSP to confirm in writing whether and how the February 2026 EUR adjustment (reported as −7.4%) was passed through to your SKUs and how the January 2027 adjustment will be processed (at what margin and at what moment). Decision: accept the pass-through or challenge it.
- This quarter — Set out the Azure USD exposure (MCA/CSP) separately with finance and assess whether EUR versus USD billing and hedging suit your consumption profile. Decide on billing currency at the next renewal.
- This year — Schedule Microsoft's November 2026 announcement as a fixed planning moment; have your CSP confirm the announced EUR list prices to you in advance. Before each renewal, compare the scenarios: renew now at the current price versus renewing after the January adjustment, with price validity and volume certainty requested — not a bare "lock in now" choice.
- This year — Explicitly record in your budget and forecast cycle the EUR/USD assumption and the annual-cadence lock, so the cloud line is no longer based on semi-annual correction.
How Orbecta supports
Orbecta Contract Intelligence maps your Microsoft renewal dates, terms and currency/price clauses and flags which SKUs renew around the January benchmark moment. Warroom Prep prepares your renewal conversation with the CSP/LSP around the November announcement — with the right questions on price validity, pass-through and volume certainty. Where a reseller may not fully pass through a currency adjustment, Claim Check supports the substantiation of that conversation.
Sources
- Primary source: Microsoft Learn — Partner Center announcements, July 2026 (transition to annual local-currency price updates on 1 January; first on 1 January 2027; notification each November).
- Primary source: Microsoft Source — "Local Currency Price Adjustments for Microsoft's Commercial Cloud" (semi-annual process pegged to USD), Dec. 2024.
- Independent lead source: The Register — "Microsoft shifts to annual exchange rate price revision for cloudy products", 9 July 2026 (previously twice a year; now annually on 1 January; "limited exceptional circumstances").
- Additional context: Topedia Blog — "Microsoft updated the local currency pricing adjustments for Commercial Cloud customers", July 2026 (annual update in January, notification in November).
- Vendor/reseller (illustrative): Universal.cloud — "Microsoft 365 price drop February 2026: EUR prices −7.4%", 13 Jan. 2026.
- Vendor/reseller (illustrative): Schneider IT Management — "Save 7.4% on your Microsoft Cloud investments in Europe [2026-02]", 24 Dec. 2025 (Azure exclusion, affected currencies, timing).
- Orbecta analysis based on the sources above.