Microsoft 365 and Office 365 prices have been raised globally for non-profit customers, with the increase taking effect on September 1st.

 HIGHLIGHTS

• Microsoft is changing three Office 365 nonprofit licenses.
• Microsoft 365 is seeing a price increase of up to 12.5 percent.
• Microsoft 365 prices increased by up to 20% last year.

Microsoft has raised the costs of Office 365 and Microsoft 365 for charity clients worldwide. The shift, which takes effect on September 1, would increase the cost of Microsoft products for organizations worldwide by up to 28 percent. It will have an effect on Microsoft Office 365 E1, E3, and E5 license costs. Microsoft 365 E3 and Microsoft 365 Business Premium will also receive the upgrade. According to the corporation, there will be no influence on any nonprofit offers provided as a grant.

Despite the hike, Microsoft stated that NGOs will continue to receive savings of up to 75% on several other Microsoft 365 goods.

As a result of the move, which was first reported by The Register and was still visible on the Microsoft Partner Centre website at the time of writing, Microsoft Office 365 E1 will now cost $2.50 (approximately Rs. 200), up from $2. (roughly Rs. 150). The Office 365 E3 license, on the other hand, will be increased to $5.75 (about Rs. 430) from $4.50 (approximately Rs. 340), while Office 365 E5 will be offered for $15.20 (approximately Rs. 1,150) from Rs. $14. (roughly Rs. 1,060).

Microsoft 365 E3 will also be increased to $9 (about Rs. 680) from $8 (approximately Rs. 600), while Microsoft 365 Business Premium will be hiked to $5.50 (approximately Rs. 400) from $5. (roughly 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 that the price increases will apply globally, with local market adjustments for certain regions.

The corporation responded, confirming that the India pricing list will be issued closer to the change's effective date.

The Redmond business explained why it opted to change the Microsoft 365 pricing at this time in a FAQ.

"Now is the appropriate moment to change our price," the business stated. "Although there are still concerns and uncertainties, we are seeing unmistakable evidence of economic recovery all across the world. Furthermore, our rivals have raised their rates, in some cases dramatically, in recent years. Simply said, we have a superior story and a demonstrated track record of reinvesting in the product and continually providing new value to our consumers."

The revised pricing will apply to both yearly and monthly billion choices for both new and existing users. Existing users will be affected when their subscriptions are renewed after September 1, according to the company.

Microsoft also ceased offering on-premise software grants on April 4th. "We aimed to offer nonprofit customers with adequate time to shift to the cloud and lock in existing Microsoft 365 nonprofit rates ahead of the April 4th revisions to our on-premises grant program," the firm wrote in its FAQ. "With this in mind, we postponed the price rise by six months from the commercial price adjustments to allow nonprofits more time to shift."

Last August, Microsoft announced a price hike for Microsoft 365 and Office 365 for commercial customers. The change was supposed to go live on March 1 and raise rates by up to 20%, but the business delayed it until March 15.