Productivity SaaS for education is changing: a wake-up call for schools

• 05 May 2025
• TM Team
• 0 Comments

By: Mr. Rex Huang, Director of Enterprise Application Group at Synology

For schools that have relied on productivity SaaS solutions for years, it’s a pivotal moment to reassess long-term needs. With providers like Google ending free unlimited storage in 2022 and Microsoft’s recent updates to their education offerings, institutions face significant challenges, including increased costs and reduced functionality. These developments underscore the importance of adopting systems that provide stability, scalability, and control.

After January 2025, Microsoft rolled out significant changes to its Microsoft 365 Education plans, including retiring the Office 365 A1 Plus plan, reducing storage pools to 100TB per tenant, and restricting some licenses to web-only applications without their counterpart desktop versions, including Word, Excel, or PowerPoint.

These adjustments may push schools toward higher-cost paid plans or force them to reallocate resources to maintain functionality, prompting many to reevaluate their reliance on SaaS solutions. Beyond financial implications, there are also rising concerns over data privacy and compliance. Educational institutions manage high loads of sensitive information such as student records, financial data, and research. This makes them prime targets of cyberattacks, which target nearly 80% of institutions annually (Netwrix, 2024). Furthermore, compliance with regulations such as FERPA and GDPR requires secure, private, and auditable data management practices, which some SaaS solutions may struggle to meet.

Shifting to an on-premise productivity solution offers educational institutions increased control over their data, cost predictability, and storage scalability. Unlike SaaS offerings, prone to subscription price hikes and unpredictable removals to their service features, on-premise solutions can provide a stable framework more suited for long-term needs. Locally stored data also ensures privacy, helping schools meet compliance requirements while protecting sensitive information.

Some on-premise productivity solutions like Synology Office Suite enhance collaboration and communication with tools for secure file storage, granular sharing permissions, real-time document editing and instant messaging, supporting both group projects for students and file management among faculty.

For IT administrators, these solutions simplify management with centralized dashboards, system health monitoring, and auditing tools for compliance. Advanced access controls also enable efficient delegation of tasks across IT teams, ensuring smoother workflows and stronger oversight of digital infrastructure.

While changes from major SaaS providers might disrupt operations in the short term, they also provide an opportunity for educational institutions to reassess the suitability of their current systems. On-premise productivity solutions provide a sustainable pathway to address cost concerns, enhance security, and build a resilient digital foundation for evolving educational needs of educators and students alike.