Is Brexit having an impact on the legal software market?

Microsoft have recently announced double digit percentage price increases for the UK market due to the imbalance created by the value of sterling post Brexit. With a 13% increase for on premise and an even greater 22% increase for cloud based software. This is bound to hurt and will also heighten the debate around cloud versus on premise solutions. Microsoft lay the blame firmly at the door of Brexit and the resultant value of sterling in comparison with the Euro.

Microsoft have said that “sustained currency changes” had led to “price misalignment” of the British pound, “this change is an outcome of this periodic assessment and will realign British pound prices close to euro levels”.

The industry is struggling to understand the reasons for the differential between the cloud and on-premise increases. With the price increases due to come into force in January 2017 there is likely to be a rush of purchases of on premise components. Cloud users may have price protection agreements in place but these may only protect for a period of time. There is of course the question of what happens if the two currencies shift back towards previous levels. Will Microsoft be quick to reverse this policy? That remains to be seen.