According to a report from Reuters, Israel has been scared off by Microsoft's subscription deals and won't renew their Office licensing agreements. A would be doubling in price happens to be the main reason behind the decision, and Microsoft has yet to comment on the issue.
Per the report, Israel's Finance Ministry says that Microsoft is apparently trying to move the Isreali government from their licensing system where they own the software, to a subscription-based renting system. This change does not meet Israel's needs and involves moving data to the cloud.
The Isreali government apparently has been negotiating with Microsoft officials for a year, and a deal has not been met. Israel will opt to freeze existing license structures owned by government ministries and will use them without further payment.
Under the current deal with Microsoft, Israel pays about $27 million a year for Office on the desktop, Windows, and server software being used across the government. The ministry issued a bold statement, saying "This will also encourage government ministries to re-examine their needs of using Microsoft technology or switch to other technology alternatives."