- Cloud PCs will take longer to wake up, but it will save you 20% on your bill
- Microsoft claims there is no interruption in performance when they are up and running
- With OEM hardware prices rising, Microsoft hopes more SMBs will move to Cloud PCs
Microsoft will cut prices for its Windows 365 Cloud PC services by 20% despite ongoing memory shortages, with the change taking effect on May 1, 2026.
The company hopes that by making cloud desktops more attractive, particularly to SMEs, it can increase its customer base and thus recoup its costs.
It’s also an interesting time for businesses moving into cloud PCs as the costs of physical devices continue to rise.
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Microsoft makes Cloud PCs cheaper amid rising prices
“DRAM and storage BOM costs increased from $122 to $237 between Q1 2025 and Q2 2026,” Omdia noted, with these costs being passed on to consumers and commercial customers with device price increases.
The company also outlines a two-step plan to reduce resource waste, which could impact performance but would result in a welcome improvement in the bill. Cloud PCs will only remain active for one hour after disconnection.
Once they begin to hibernate, they may be slightly slower to reconnect than before. Introduced to reduce costs and waste, Microsoft claims that performance remains the same when reconnected.
In other words, the revision “helps offer a lower price while preserving the full value and capabilities of Windows 365 Business that partners and customers expect.”
New users and existing users renewing their subscription will see the changes.
The “20% list price drop for Windows 365 Business, along with a new on-demand startup experience,” makes “Cloud PCs more accessible to small and medium-sized businesses,” the company added in an update.
More broadly, this signals a shift in behavior, with Microsoft targeting lower performance in the name of profitability, just as a number of OEMs (including Raspberry Pi) have done by introducing mid-spec device tiers below high-end flagships.
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