Are There Microsoft Licensing Changes for Copilot Already?

30th Jan 2024

Yes, Microsoft changed their licensing again. This isn’t the first nor last time that you should expect to see changes, but this time, it only took two months after the last change. Copilot for Microsoft 365 has been only generally available since November 1, 2023.

On January 15, 2024, they announced multiple changes to their offering to include three distinct editions:

  • “Free” edition is for companies with an Entra ID (formerly Azure Active Directory) plan.
  • “Pro” edition is for individuals with a Microsoft 365 Personal or Family subscription.
  • “For Microsoft 365” is for the following:
    • Small/Medium Business with Microsoft 365 Business Standard/Premium
    • Enterprises with Microsoft/Office 365 E3/E5 subscriptions
    • Education with Microsoft/Office 365 A3/A5 subscriptions

Of significance is the ability to use Office 365 subscriptions for purchase eligibility instead of only Microsoft 365.  Organizations not yet buying Microsoft 365 E3/E5 now can’t be pushed by sellers to upsize to M365 to obtain Copilot for Microsoft 365. In addition, the following applies:

  • The 300-seat minimum purchase requirement is gone.
  • Organizations can use CSP instead of EA to buy, except education at this current time.
  • Semantic Index will be extended to Copilot users.

Though we hear varied customer experiences, good and bad, we believe these are steps in the right direction for Microsoft. However, as with all new Microsoft offerings, we suggest a tempered approach rather than getting caught up in the AI and innovation hype that Microsoft would like you to buy. Literally.