Re: Balls
I think they have also many security concerns, and a foreign system that slaps software in your PCs whenever it thinks it's good to do doesn't look something very security-conscious Israel would like.
With standard perpetual licenses they can vet software and control updates, with Office365 it becomes much harder. Plus there are the increasing costs, and the risk they could be cut out, i.e. if US decides some form of sanctions against the country in the future. The CLOUD Act may be also a factor.
Microsoft & C. may found that trying to force everybody into a subscription model could fire back.