Microsoft is adjusting cloud prices in five currencies on January 1, 2027, and the Norwegian krone is the only European one among them. The dollar has risen since the last adjustment, yet Microsoft leaves prices in CHF, EUR, DKK, and SEK unchanged, so your budget stays where it is.
1. Microsoft adjusts five currencies, almost none of them European
Microsoft published the first round of its annual cycle on November 10. The new prices take effect on January 1, 2027, and from now on every year on January 1.
| Currency | Cloud | On-premises |
|---|---|---|
| INR | +15.7% | up to +20% |
| NZD | +10% | +10% |
| CNY | up to −8.5% | none |
| NOK | −5.9% | none |
| AUD | −4% | none |
| CHF, EUR, GBP, DKK, SEK | none | none |
Two currencies sit outside this round. The Japanese yen stays on its April cycle, and Microsoft will review the Brazilian real separately once Brazil's tax reform is in place.
2. Microsoft does not close every gap to the dollar
Microsoft gives one reason for the round: local currency prices should align with global levels. That level is the dollar price.
When a currency moves against the dollar, a gap opens between the local price and the dollar price. Microsoft does not close it automatically. It acts only once the gap passes a size that Microsoft does not publish.
Microsoft's behavior shows roughly where that line sits. In February 2026, Microsoft left the pound unchanged at a gap of 3%. For 2027, the franc, the euro, and the Danish krone stay unchanged at just over 3%, and the Swedish krona even at 4.6%.
Microsoft adjusted where the gap was much larger: the Indian rupee, the New Zealand dollar, and the Norwegian krone.
3. Today the dollar stands about 3% higher
Compared with November 2025, the basis of the last adjustment, the dollar stood clearly higher in October 2026: +3.1% in francs, +3.2% in euros, +4.6% in Swedish kronor. This is exactly the gap Microsoft now leaves in place.
That has only been the case since the summer. When Microsoft cut prices in February 2026, the franc was 3.8% stronger against the dollar than in November 2025. Into early summer, the franc, the euro, and the Scandinavian currencies stayed on that side.
For four of the six European currencies, the exchange rate would have justified an increase: +3.1% for the franc, +3.2% for the euro, +3.3% for the Danish krone, and +4.6% for the Swedish krona. Microsoft adjusts none of them.
The pound and the Norwegian krone sit on the other side. Microsoft cuts the krone price by 5.9% and closes most of its gap. For the pound, the rate would have justified a cut of 1.2%, and Microsoft leaves it unchanged, as in 2026.
4. CHF 90'500: what the decision means for a license budget
We use the same customer as in our post from November 5. The customer pays CHF 90'500 a year for Microsoft cloud licenses.
Had Microsoft closed the gap in full, the price would have been CHF 93'305.50 from January, which is CHF 90'500 × 1.031. Because Microsoft leaves the franc unchanged, the invoice stays at CHF 90'500.
The customer's invoice does not change. The increase of CHF 2'805.50 that the exchange rate would have justified does not happen, for the full year, because the next adjustment comes on January 1, 2028 at the earliest.
5. Why our forecast expected an adjustment
The measurement holds. The exchange rate moved by about 3%.
The forecast from November 5 assumed that Microsoft would close the gap in full. It also noted that the franc, the euro, and the Danish krone were in the range where Microsoft left the pound unchanged in 2026. Microsoft chose that second reading, for every European currency except the Norwegian krone.
For the next round, that is the more useful finding. A gap of just over 4% is not enough for Microsoft to adjust. If you plan for January 1, 2028, assume a tolerance band, not a full adjustment.
6. Four steps for your 2027 budget
- NowRemove any currency increase from your budget. If you set aside 3% for the currency round, reset the budget for CHF, EUR, DKK, and SEK to today's price level.
- By Dec 31Do not pull contracts forward because of the currency. If you pay in CHF, EUR, DKK, or SEK, no price changes on January 1, 2027 because of the exchange rate.
- JanuaryIf you pay in NOK, check that the cut reaches you. Microsoft lowers prices in Norwegian kroner by 5.9%. Check the first invoice of the new year.
- NovemberTreat January 1 as a fixed date. The next round takes effect on January 1, 2028. This year, Microsoft announced it on November 10, about seven weeks ahead.
Limits and exceptions
- Currency is only one price lever. Whether Microsoft changes list prices of individual products, price levels, or contract terms in 2027 is still open. Microsoft announces such changes separately, and they can move your budget more than the currency.
- The gaps are our calculation. Microsoft publishes neither a reference rate nor a threshold. Our figures use ECB average rates and show the order of magnitude, not Microsoft's internal number.
- The next round depends on the exchange rate. If the franc and the euro weaken further by the end of 2027, the risk of an increase on January 1, 2028 rises. If they regain value, it falls.
- Azure follows its own pricing mechanism. Azure list prices in local currency already sit close to the current dollar rate. This post therefore looks at license prices such as Microsoft 365.
Questions for your reseller
- Will my price change on January 1, 2027 because of currency, even though Microsoft is not adjusting CHF and EUR?
- Which changes to product prices, price levels, or contract terms are known for 2027?
- Am I billed at the Microsoft list price in local currency, or under your own price list?
- Is the price of my annual contracts fixed for the full term?
Bottom line
On currency, you can stand down: if you pay in CHF, EUR, DKK, or SEK, there is nothing to do, even though the exchange rate would have justified an increase of about 3%. On price, you cannot yet, because Microsoft decides product prices, price levels, and contracts separately.