Microsoft raises prices for nonprofit customers • The Register

Microsoft has increased the price of Office 365 and Windows 365 editions it offers to nonprofit customers, effective September 1, 2022.

News of the price increase appeared in a March 29 update on a Partner Center page where Microsoft is posting rolling announcements of offers and price changes.

The price increases are as follows:

  • Microsoft Office 365 E1: from $2.00 to $2.50
  • Microsoft Office 365 E3: from $4.50 to $5.75
  • Microsoft Office 365 E5: from $14.00 to $15.20
  • Microsoft 365 E3: from $8.00 to $9.00
  • Microsoft 365 Business Premium: from $5.00 to $5.50

The register compared the percentage increase in price increases compared to those imposed on commercial customers in Microsoft’s March 2022 price increases.

One increase stands out: the price of Office 365 E3 is up 27.78 percent for nonprofit customers, compared to a price increase of 15 percent for commercial customers. Prices for the other four products will increase by the same percentage that Microsoft has imposed on its commercial customers.

Prices are still very low, with four sold for 75 percent less than the price offered to commercial customers. The nonprofit discount for Office 365 E5 is 60 percent.

In an FAQ [PDF] Explaining the changes, Microsoft points out that Office 365 has “added 24 new apps and more than 1,400 features” over the past decade. One of the new apps is Teams, which Microsoft says has proven useful in recent years.

The FAQ asks the question, “Why are we updating the price for Microsoft 365 at this time?” and answers it like this:

The FAQ also addresses the fact that Microsoft stopped granting grants for its on-prem software on April 4, under a new “cloud-first grant” program.

“In anticipation of updates to our on-prem grant program on April 4, we have sought to give nonprofit customers sufficient time to move to the cloud and capture existing Microsoft 365 nonprofit pricing,” the FAQ reads, adding. added: “With this in mind, we have delayed this price increase by six months against the commercial price changes to give nonprofits enough time to make the switch.”

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