Following the price increase of some Microsoft Office 365 and Microsoft 365 offerings for Commercial customers, Microsoft announced that they will soon do the same for Nonprofit customers. Here are the details.
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Commercial and Nonprofit
Commercial customers are regular business and organizations which do not qualify for discounted offers such as Academic or Nonprofit. Nonprofit are organizations that are eligible according to the Nonprofit eligibility criteria, such as charity organizations. To support Nonprofits doing their good work, Microsoft offers discounted prices (up to 75% compared to regular prices).
Microsoft recently announced that starting September 1st, 2022, some of the Microsoft modern work offers price updates will go into effect. The products that are impacted with their new prices:
- Office 365 E1 US$ 2.50 (from US$ 2.00)
- Office 365 E3 US$ 5.75 (from US$ 4.50)
- Office 365 E5 US$ 15.20 (from US$ 14.00)
- Microsoft 365 E3 US$ 9.00 (from US$ 8.00)
- Microsoft 365 Business Premium (for SMBs) US$ 5.50 (from US$ 5.00)
Local currencies will be published later.
The prices of the Microsoft 365 E5 and Microsoft 365 Business Standard subscriptions are not impacted. Nor are the subscriptions for the Firstline Workers (so called ‘F-SKU’s’) impacted.
Get some for free
For larger Nonprofits (over 250 users), Microsoft offers up to 2,000 subscriptions for Office 365 E1 as a ‘free of charge grant’ to customers with an Enterprise Agreement if they meet the requirement of at least 250 paid users. For smaller Nonprofits (maximum of 300 users) Microsoft offers 10 free-of-charge seats of Microsoft 365 Business Premium and 300 (!) free-of-charge seats of Microsoft 365 Business Basic (only direct at Microsoft through their website of via a Microsoft Cloud Solution Provider (CSP Parnter)).
Why higher prices?
According to Microsoft the reasons for higher pricing are the same as for Commercial customers: more value, increased capabilities and more Apps. Besides higher security off course.
When does it impact you?
In general, a price is locked for the term of the subscription or the term of your Agreement (Enterprise Agreement customers). During this price lock, your price will stay the same, despite the fact that Microsoft is increasing their prices. Only when you renew your subscription or Agreement on or after September 1st, 2022 you will receive the higher prices. Example, when you have a current subscription which ends January 31st, 2023, you will get the higher September prices starting your new subscription starting February 1st, 2023.
When you have questions about this price increase, you can use this practical Frequently Asked Questions page to help you. If this does not provide enough information or when you want to discuss tailor made options, please contact us for an appointment.