Microsoft touts “cost effective” cloud PC prices for small businesses as hardware prices spike

Microsoft has announced plans to cut prices for its Windows 365 Cloud PC service next month.

The 20% rate cut, which comes into effect from 1 May, is aimed primarily at small businesses, according to the tech giant. The firm said the reduction will make cloud personal computers “more cost effective”.

It’s worth noting that the 20% reduction appears to apply to new customers only, with existing subscriptions receiving updated pricing at their next renewal and “subject to purchase channel and terms”.

Regardless, the update comes amid rising hardware prices for businesses of all sizes due to surging RAM costs. Combined with device refresh cycles and the shift to Windows 11, SMBs are expected to be among those worst hit by the surge.

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Last month, Omdia recorded a 60% rise in prices for PCs across Q1 of 2026 while Gartner projects a 130% surge in combined DRAM and SSD prices by the end of the year.

As ITPro previously reported, low-budget devices are expected to be the hardest hit due to skyrocketing prices, with manufacturers prioritizing higher-end options to absorb costs.

Microsoft touts on-demand benefits

In addition to the price cut, Microsoft said the update will introduce an “on-demand start experience” that aims to deliver better performance.

From May, cloud PCs will stay powered on for one hour after sign-out/disconnect, the company said. Reconnects within a period of one hour will remain unchanged.

“Reconnects after more than an hour might take slightly longer as the Cloud PC resumes from hibernation (with the same performance once connected),” the company said in a blog post.

What to expect with Windows cloud PCs

Windows cloud PCs come in a range of separate packages, all of which support desktop versions of Microsoft 365 apps.

The basic package, which includes two vCPUs, 4GB RAM, and 128GB storage comes in at £26.90 per user, per month (£32.28 including VAT).

Meanwhile, the standard package, which will set you back £35.60 per user, per month, includes two vCPUs, 8GB RAM, and 128GB storage. Each package has a maximum of up to 300 seats.

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