Microsoft has increased the prices of Office 365 and Microsoft 365 for nonprofit customers around the world. The change, effective September 1, will make Microsoft products up to 28 percent more expensive for nonprofits worldwide. This affects the license prices for Microsoft Office 365 E1, Office 365 E3, and Office 365 E5. The update also applies to Microsoft 365 E3 and Microsoft 365 Business Premium. However, there will be no impact on nonprofit offerings available as grants, the company said.
Despite the increase, Microsoft said it would continue to offer nonprofits discounts of up to 75 percent on many other Microsoft 365 products.
As a result of the update, which was initially reported by The Register and appeared on the Microsoft Partner Center page at the time of this article submission, Microsoft Office 365 E1 will be available for $2.50 (approximately Rs. 200), an increase of $2 (about Rs. 150). However, the Office 365 E3 license will go up to $5.75 (approximately Rs. 430) from $4.50 (approximately Rs. 340) and Office 365 E5 will be available for $15.20 (approximately Rs. 1,150), an increase of Rs. $14 (about Rs. 1,060).
The price of Microsoft 365 E3 also goes up to $9 (about Rs. 680) from $8 (about Rs. 600), while the Microsoft 365 Business Premium is increased to $5.50 (about Rs. 400) from $5. (about Rs. 380).
|Product||Old price||New price||percentage increase|
|Office 365 E1||$2||$2.50||25 percent|
|Office 365 E3||$4.50||$5.75||28 percent|
|Office 365 E5||$14||$15.20||8.6 percent|
|Microsoft 365 E3||$8||$9||12.5 percent|
|Microsoft 365 Business Premium||$5||$5.50||10 percent|
Microsoft said the price increases will be global, with local market adjustments for certain regions.
Gadgets 360 contacted Microsoft to understand when the price hike in India will take effect. The company responded and confirmed that the price list for India will be published closer to the effective date of the change.
In an FAQ, the Redmond-based company answered why it chose to update the Microsoft 365 price at this time.
“Now is the right time to update our prices,” the company said. “While there are still questions and uncertainty, we are seeing clear signs of economic recovery around the world. In addition, our competitors have increased prices in recent years, in some cases aggressively. We simply have a better story and a proven track record on reinvesting in the product and consistently delivering new value to our customers.”
The updated pricing will affect both annual and monthly billion-dollar options for new and existing customers. In the case of existing users, it will come into effect on the next renewal after September 1, the company said.
Microsoft also stopped its on-premise software subsidies effective April 4.
“In anticipation of the April 4 updates to our on-prem grant program, we have sought to give nonprofit customers sufficient time to move to the cloud and lock in existing Microsoft 365 nonprofit pricing,” the company said in its FAQ. ask. “With this in mind, we have delayed this price increase for six months from the commercial price changes to give nonprofits enough time to make the switch.”
Microsoft had announced the price increase for Microsoft 365 and Office 365 for business customers last August. The update aimed to increase prices by as much as 20 percent and was scheduled to go live from March 1, although the company delayed it until March 15.