Microsoft hikes prices for non-profit customers, ends on-prem software grants
- Reference: 1649396705
- News link: https://www.theregister.co.uk/2022/04/08/microsoft_nonprofit_price_increases/
- Source link:
News of the price increase appeared in a March 29 [1]update to a Partner Center page on which Microsoft posts rolling announcements of offers and pricing changes.
The price rises 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 of the price rises compared to those imposed on commercial customers in Microsoft's [2]March 2022 price rises.
One increase stands out: the price of Office 365 E3 has risen by 27.78 per cent for non-profit customers, compared to a 15 per cent price hike for commercial customers. Prices for the other four products will rise by the same percentage Microsoft has imposed on its commercial customers.
[3]
The prices are still very low, with four sold for 75 per cent less than the price offered to commercial customers. The non-profit discount for Office 365 E5 is 60 per cent.
[4]Rivals aren't convinced by Microsoft's one-click default browser change
[5]Microsoft inks satellite deal to push edge computing, software in orbit
[6]Microsoft brings Cloud PCs and local desktops together in Windows 365
[7]Microsoft UK revenues surged as profits slimmed
In an [8]FAQ [PDF] explaining the changes, Microsoft points out that over the last decade Office 365 has "added 24 new apps and more than 1,400 features." Among the new apps is Teams, which Microsoft points out has proven handy in recent years.
The FAQ poses the question: "Why are we updating the price for Microsoft 365 at this time?" and answers it as follows:
This is the right time to update our pricing. Although there are still questions and uncertainty, we see clear signs of economic recovery around the world. Moreover, over the past few years our competitors have increased prices, in some cases aggressively. We simply have a better story and proven track record of reinvestment in the product and consistently delivering new value to our customers.
The FAQ also addresses the fact that as of April 4 Microsoft stopped making grants of its on-prem software, under a new "cloud-first grant" program.
"Ahead of the April 4th updates to our on-prem grant program we sought to provide non-profit customers with enough time to transition to the cloud and lock in existing Microsoft 365 non-profit prices," the FAQ states, adding: "With this in mind, we delayed this price increase by six months from the commercial price changes to give non-profits enough time to make the transition." ®
Get our [9]Tech Resources
[1] https://docs.microsoft.com/en-gb/partner-center/announcements/2022-march#20
[2] https://www.theregister.com/2022/03/08/nce/
[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_software/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YlAH1UZhK1J1Cucs-H2vKgAAAJM&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[4] https://www.theregister.com/2022/04/07/browser_default/
[5] https://www.theregister.com/2022/04/06/loft_orbital_microsoft/
[6] https://www.theregister.com/2022/04/06/microsoft_365_cloud/
[7] https://www.theregister.com/2022/04/06/microsoft_uk_figures/
[8] https://nam06.safelinks.protection.outlook.com/?url=https%3A%2F%2Faka.ms%2FM365NonprofitPartnerPriceChange&data=04%7C01%7Capurvac%40microsoft.com%7C0100f2f6c7fa40bc86cc08da0c240f27%7C72f988bf86f141af91ab2d7cd011db47%7C1%7C0%7C637835646256298251%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000&sdata=%2FpirHPMs8kWmDvhwcIKhJmoyexYgZxN7f6dvzZWWF94%3D&reserved=0
[9] https://whitepapers.theregister.com/
well yes, but...
I really hate to feel in the position of defending Microsoft, but the E3 edition with the price increases are (US$) 23 for commercial and 5.75 for non-profits. Exactly 1/4 the cost for non-profits. Previously they were 20 and 4.50 - exactly half-way between 1/4 and 1/5 the cost. While the article is telling the truth, expressing the numbers the way the article has strikes me as trying to stir up a tempest in a teapot.
Re: well yes, but...
Plus, of course, Microsoft are not obliged to provide the non-profit discounts at all. They just figure that doing so will boost sales of the commercial versions as people get used to using them.
I've recently set up a non-profit using it and the cost vs on-prem means the break-even point would be >5 years, at which point the on-prem server would probably need replacing anyway. In this instance, cloud is both cheaper and more flexible for them; in other cases it doesn't work that way and depending on requirements the cloud solution may or may not be better.
Re: well yes, but...
Not obliged but probably in their interest too as you say, there is no way the non profits I’ve seen would be able to afford things like SQLserver or exchange without it. Microsoft’s problem may end up being that non profits often can’t absorb these increases as easily as commercial organisations as they often run on a shoe string. I’ve already been asked by a local one for options for their 25 users.
I’ve also never met a non profit that keeps a server less than 5 years so I’m guessing you’ve worked with much bigger ones!
"added 24 new apps and more than 1,400 features."
Well... the apps are not that interesting (I do not like teams, had a few calls with some international colleagues and it was a mess - there used to be a reliable and light weight program called Skype, but after the new owners messed it up it is neither leight weight nor reliable (nor good) - and the 1400 features are the hotkeys they keep constantly chainging and the hiding of them (they used to be visible in the menues - alas no longer)....
bitter? me? Yeah, I'll have one -->
I could think of another industry/business model where the first hit is basically free. Once you're hooked WHAMO !!!
The main aim here is clearly to push non-profits onto their cloudy services by making the on-prem licensing prohibitively expenses.
In reality the on-prem grants at very low pricing have only generally been of use to small non-profits for a couple of years, since they removed all the higher options from the scheme (basicaly the pro versions of everything server-side, Office Pro+, SQL Server per-core).
Monkey see, Monkey do
Our competitors raised their prices so we're raising ours - got to think of the shareholders!