Last month Microsoft revealed that because of sustained differences between the British pound and the euro it would be increasing its licencing prices to maintain consistency across the region.

These initial increases were estimated to be between 7.5 percent and 33.5 percent. However, Microsoft now believes that lowering this range to between 1.7 percent and 25.9 percent will provide an accurate adjustment that maintains consistency across the European region.

IT buyers have until 1 July to purchase licences under the old Microsoft prices.

However, Microsoft confirmed to Computerworld UK that it could not rule out future price increases, as it will continue to monitor currency movements and may make further adjustments if there are large fluctuations.

It was also that the Cabinet Office has reached a three-year licencing deal with Microsoft for its upcoming Public Sector Agreement 2012 (PSA12). The government's current PSA09 deal with Microsoft, which sets discounting licencing prices for the public sector, is due to come to an end on 30 June 2012.