Microsoft begins to conduct settlings with the Russian partners in rubles

"Transition to national currency testifies to our confidence in stability, potential of development of the Russian IT market and national economy in general, – Nikolay Pryanishnikov, the president of Microsoft Rus LLC company notes. – In the activity the corporation was always focused on joint mutually advantageous business with partners. Introduction of the ruble prices for the Russian partners is the our next step directed to considerable improvement of conditions of our cooperation and also creation of convenience of long-term planning to clients".

Passing to settlement in rubles, Microsoft aims to minimize currency risks of the Russian partners and foots the bill on implementation of the procedure of hedging. Microsoft as one of the largest players of the market of high technologies and world economy in general, can receive the most advantageous conditions on an interest rate of hedging. So current rate of hedging for Microsoft in 2011 is about 10% of the hedged amount.

"Before implementation of the ruble prices conducted all settlings with the Russian Microsoft partners in US dollars. Partners had to be calculated with the Russian clients in rubles. Naturally, there were risks connected with volatility of an exchange rate which partners were often forced to put in the final cost of the software for clients. Let's remind that settlement between Microsoft and partners of the region of EMEA is performed through the operational center in Ireland – Microsoft Ireland Operations Limited (MIOL) which will accept from the Russian partners payment in rubles now", – Evgeny Voronin, the director of strategy and affiliate programs of Microsoft Rus LLC company explained.

At the time of transition the course of recalculation of the dollar prices in ruble will vary from 29 to 33 rubles for dollar. At determination of a course of recalculation of Microsoft, first of all, considers the cost of hedging of rubles, the historical and predicted volatility of ruble exchange rate and also consumer capability of different client segments. So on the most mass software products available in retail, for example, on MS Office for the house and study, the minimum rate will be set, and here on the software for professional use in the large companies the level can reach an upper point.

Therefore at the time of introduction of the ruble prices to action on some products and programs of licensing end consumers can see some reduction in price, and on others, on the contrary, slight increase which at the same time will not exceed the current value of hedging of ruble.

Microsoft is regularly not going to change the prices after change in the exchange rate of ruble. Price stability remains the key moment of policy of the company. However solutions of corporation on the prices in Russia will be defined by a status of the world and Russian economy and also level of demand and offers in the market.

"The procedure of hedging is typical for the companies which are engaged in export-import activity and persons interested to reduce course risks. However, reducing risk of exchange rate fluctuations for the partners, the company faces a problem of volatility of ruble which grew in connection with a number of actions taken by the Central Bank of the Russian Federation recently. The company should consider these risks in the course of pricing on the products and services, – the director of the department of analytical information of RBC media holding Alexander Yakovlev explains. – It is pleasant that Microsoft is guided by flexible approaches to pricing for a line of the numerous products and at the same time heads for long-term price stability".

Microsoft passes to ruble settlement in work with most of the Russian partners whom there are about 9.5 thousand today. Changes in pricing will not affect so far only suppliers of a computer hardware (OEM) and business applications of Microsoft Dynamics of the class ERP and also the software developers cooperating with the company according to special programs of licensing.

It is connected with the fact that transition to the ruble price list is technically and is operational a difficult procedure. For the purpose of achievement of maximum efficiency the company begins to transfer the most standard and widespread transactions to ruble calculations. However in further Microsoft does not exclude a possibility of transition to payments in rubles and with these three categories of partners.

"We, certainly, are glad that Microsoft took such important and courageous step. Payments in rubles will be profitable not only to partners of the company who will be able to increase the level of service due to decrease in currency risks, but also for our customers as guarantee them big stability, especially at signing of the contracts for 2-3 years, - Moskalyov Dmitry Vladislavovich, the president of Mont group comments. - Especially this solution is relevant during the periods of economic instability when volatility of ruble is especially strong. For example, in crisis of 2008 of loss of partners in some long-term contracts where the prices between the partner and the client were recorded in rubles at a pre-crisis rate, reached 30%. It sometimes led to failure of their accomplishment. Now we will be able to avoid such situations".