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They probably paying a tenth of that as big edu users. What you quote are the commercial starting price for a basic-ish license.

If you look at the numbers that way, open source usually looks like a slam dunk.

The problem is coordination issues: actually getting people and orgs to look at it that way and spend the money that way, rather than just waiting for someone else to fix the problem.

they already do that, it's called SURF, and they host a nextcloud instance called surfdrive.