If you’re part of a non-profit, you’ve probably already heard chatter about Microsoft making big changes to its free license programmes. We’ve been helping non-profits balance IT costs and mission priorities for years, so we understand how disruptive this kind of news can be.
For many organisations, those free licenses – like Microsoft 365 and Office 365 – have made it possible to offer email, documents, and teamwork tools without tapping into already-tight budgets. The thought of losing that support is understandably daunting.
If you’re anxious about how this might shake up your operations or budgets, we’re here to bring some clarity to the situation.
So, what’s actually changing?
- The free grant for Microsoft 365 Business Premium is ending, so if you’re using this for desktop apps and extra security then you’ll need a new plan.
- The same is true of the free grant for Office 365 E1, a plan covering basic web apps and email for lots of groups. It won’t be free anymore, though discounts will be available.
- There’s also no more free grant for Dynamics 365 Sales Enterprise licensing, which means action will be required to maintain your CRM.
- Microsoft is dropping its annual Azure grant from £2,800 to £1,600.
- Lastly, Microsoft won’t be offering free or donated software for local servers anymore; everything’s moving cloud-first.
Don’t panic… here’s the important timing
These changes take effect at your next renewal date after 1 July 2025. You may need to act now, or you might have several months to work things out. Importantly, you won’t lose access right away as there’s a 30-day grace period where nothing changes, and then admins have another 60 days to access your data. That’s 90 days to sort out your next steps before anything gets deleted.
What should you do?
With an understanding of what’s changing, now it’s time to do something about it. As inconvenient as these changes can be, they also present an opportunity to optimise your cloud strategy.
We’ve devised a five-step plan to get your non-profit back on track.
- Conduct a thorough license audit… now!
- Understand exactly who is using which licenses and what features they genuinely need. Are some users simply consuming a premium licence, when a basic one would suffice?
- Review your current Microsoft 365 usage data.
- Profile your users and their needs:
- Who absolutely needs desktop Office apps and advanced security? Who can operate effectively with web-only apps and email? This is where your insights into usage patterns will be invaluable, to help you make sure what you’re only paying for what you actually need.
- Explore the new options:
- Microsoft 365 Business Basic (Free for up to 300 users): After you’ve audited your license usage, perhaps you’ve realised that, actually, a Microsoft 365 Business Basic license will suffice. This remains a free grant for up to 300 users, and includes web/mobile Office apps, Teams, SharePoint, OneDrive, and business email.
- Discounted paid plans: Microsoft is offering significant discounts (up to 75 per cent) on plans like Business Premium, Office 365 E1, E3, and E5. Whether these are applicable to all or just some of your team, you’ll gain access to the tools you need at a lower price point.
- Consider hybrid cloud models:
- Combining the free Business Basic licenses with these discounted plans for specific user groups can enable an excellent level of cost control. Adopting a mixed approach, offers a balanced and cost-effective solution tailored to your organisation’s unique needs.
- Plan your budget and seek expertise:
- Start integrating these potential new costs into your financial forecasts now – don’t wait until your next budget meeting.
- Lastly, don’t feel the need to go it alone. A trusted cloud partner, like us, can help you navigate these complexities, analyse your usage, identify the most cost-effective solutions, and ensure a smooth transition with minimal disruption. We can go on to help you leverage AI for deeper insights into your cloud spend and implement optimal resource allocation.
This shift, while challenging, is also an opportunity for greater efficiency and security in your digital operations. By being proactive and strategic, your non-profit can not only adapt but emerge with a more robust and cost-optimised cloud environment that’s ready for the future.
