07 March 2023
Dear Valued Clients,
As your trusted IT service partner, we would like to inform you of an annual 7% increase in our IT services and hosted cloud solutions, effective from 1st April 2023. We understand that this increase may be an unwelcome news, and we apologize for any inconvenience it may cause.
As you may know, we operate from Teraco data centre, which provides world-class facilities and infrastructure to ensure the best possible performance and security for your cloud solutions. However, we are also facing challenges that come with rising operational costs, such as electricity costs and travel expenses for our on-premise IT support.
The recent tariff hike by Eskom has had a significant impact on our hosting operations. Additionally, our on-premise IT support team needs to travel to various locations, incurring higher travel expenses. These factors and rising software and hardware cost, have compelled us to increase our prices to ensure our business remains sustainable while maintaining the quality of our products and services.
Microsoft pricing remains a challenge. The monthly billing cycle from our supplier is directly linked to US Dollar ROE. The weakening Rand meant that most of our Microsoft products were billed at rates far less than our cost. Going forward, our billing cycle for all Microsoft products will be adjusted on a 3 month average. This will enable us to absorb some of the ROE fluctuations while presenting you our valued client with small adjustments to your Microsoft product pricing from time to time, and only when necessary.
We understand the impact this price increase may have on your business, and we have worked hard to keep the increase as low as possible while ensuring the quality of our services is not compromised. We remain committed to delivering the best possible solutions to you, and we believe that our hosted cloud solutions and on-premise IT support services continue to provide exceptional value to your business.
We are here to help you navigate through this transition and ensure that your business continues to receive the best possible IT services. Our team of experts is available to answer any questions you may have or provide you with any assistance you need.
Thank you for your understanding and continued support. We look forward to continuing to provide you with the best possible IT services and hosted cloud solutions.
Dotcloud Management Team