There’s been a lot of changes happening in recent months around Microsoft’s license pricing (aka New Commerce Experience), and most recently, Microsoft announced new pricing is coming for Microsoft 365, directly impacting nonprofits. On September 1, 2022, the following nonprofit price updates* will go into effect:
- Enterprise: Office 365 E1: $2.50 (from $2), Office 365 E3: $5.75 (from $4.50), Office 365 E5: $15.20 (from $14), Microsoft 365 E3: $9 (from $8)
Note that up 2000 seats of Office 365 E1 continue to be available as a grant via an Enterprise Agreement for eligible users, if they meet the requirement of 250 paid users of qualifying products.
- SMB products: Business Premium: $5.50 (from $5)
Note that up to 10 seats of Microsoft 365 Business Premium continue to be available as a grant. 300 seats of Microsoft 365 Business Basic continue to be available as a grant as well.
- Also note they are NOT changing pricing for Microsoft 365 E5, Microsoft Business Standard, or the Frontline SKUs.
Why is the price of Microsoft 365 changing at this time?
This reflects the significant value that Microsoft has added to Microsoft 365 over the past decade and maintains the 60-75% nonprofit discount level they have had in place since 2013.
This change builds on the product innovation Microsoft has delivered over the past ten years to meet the changing needs of their customers. Since its initial release, they’ve added 25 new apps and over 1,400 features including:
- The introduction of Microsoft Teams as the only solution with meetings, chats, calls, collaboration, and the ability to automate business processes.
- Added capabilities like data loss prevention (DLP) for documents and emails, Office messaging encryption, and attack surface reduction capabilities.
- New AI-supported capabilities that help automate tasks, more easily find information in a timely manner, and enables communication in ways that are more accessible for everyone.
- Unlimited audio-conferencing dial-in across all Microsoft/Office 365 suites for nonprofits and Microsoft Defender security value into both Microsoft 365 E3 and Microsoft 365 Business Premium
How will this price change impact existing customers?
Existing customers are not impacted until their next renewal on or after September 1, 2022.
*Pricing indicated is equivalent to USD in your local currency.
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If you have questions about any of Microsoft’s recent price updates, our Microsoft experts are here to help you understand your options and optimize your Microsoft license investment.