How is Microsoft driving adoption of Copilot without EA contract renewals?

In-Depth Answer

Non-renewal Acquisitions

Organizations without EA contract renewals in 2024 have different opportunities and challenges. If Copilot was acquired through a supplemental customer price sheet (CPS) which became available in late 2023, the pricing may be set for the term in the future pricing table. In these cases, customers with a potentially large acquisition can either try to re-negotiate pricing or perhaps postpone purchases until the next contract renewal.

If an organization hasn’t yet acquired Copilot, there are three primary options to consider:

1. Negotiated acquisition through a Supplemental CPS: If the purchase is large enough to warrant negotiated pricing, a Supplemental CPS can be used both for the acquisition and to set future pricing through the contract term. As with typical EA renewals, various pricing and payment options can be incorporated to accommodate the deployment schedule, budget limitations and other non-standard terms.
2. Purchase one, then reserve and pay for additional quantities later at list price: Purchasing a few licenses on your EA through your reseller, and avoiding a Supplemental CPS, enables a customer to use the reservation process — use now, pay later — and avoid a licensing minimum quantity. While the price is non-negotiated and no future pricing is set, new licenses should reflect the updated price point if pricing decreases. Conversely, if pricing increases, then a customer may consider a Supplemental CPS prior to the price change to avoid the change.
3. Use a different volume licensing vehicle: If organizations would like to test Copilot without an annual commitment, they can use a month-to-month program, which is typically 20% higher than annual commitment pricing. Organizations can also acquire Copilot with other non-EA contract types at list price. Organizations that want to avoid using the EA reservation process due to business, accounting or other reasons may find non-EA programs most interesting.