Microsoft 365 Copilot Licensing Considerations & Planning
In the ever-evolving landscape of technology, Microsoft continues to be at the forefront, offering innovative productivity solutions that transform the way we work. One such innovation is Microsoft Copilot and its advanced machine learning capabilities built on natural language processing.
This blog delves into the world of Copilot for Microsoft 365 Apps, exploring its capabilities, licensing strategies, and the immense potential it holds for the estimated 345 million Microsoft 365 paid subscribers worldwide.
Microsoft Copilot: A Game Changer
Copilot, backed by Microsoft, has emerged as a notable change in the realm of machine learning and natural language processing. It is seamlessly integrated into various Microsoft services, offering enhanced functionality across a wide spectrum of applications.
Expanding Reach
Microsoft 365 and its associated services have witnessed a significant influx of Copilot capabilities, benefiting users in the following areas:
· Microsoft 365 Apps
· PowerPlatform, including Power Apps, Power Automate, and Power BI
· Dynamics 365
· Viva
Beyond these, Copilot’s influence extends to Microsoft Security Copilot, Edge, Bing, and GitHub, demonstrating its versatility and adaptability across Microsoft’s ecosystem.
The Power of Integration
One of the key strengths of Copilot lies in its seamless integration into everyday Microsoft 365 applications, such as Word, Excel, PowerPoint, Outlook, and Teams.
This integration enhances creativity, boosts productivity, and elevates user skills. Additionally, Copilot can be utilised through Business Chat across Microsoft 365 apps and data, automating tasks related to calendars, emails, chats, documents, meetings, and contacts.
Licensing Strategy and Considerations
In July, Microsoft unveiled its pricing and licensing strategy for Copilot at $30 per user per month. While this represents a valuable addition to Microsoft’s offerings, it is important for customers to assess the impact on their budgets.
When evaluating Copilot for Microsoft 365, customers need to understand that they must have the correct base licenses to enable the purchase of Copilot. It is crucial to understand that users must be licensed with a subscription for Microsoft 365 E5, E3, Business Premium, or Business Standard. Office 365 subscribers should take note, as this add-on is not available for them.
Importance of Profiling
One size does not fit all when it comes to licensing Copilot. To maximize return on investment, user personas should be defined and categorised into non-knowledge workers and several types of knowledge workers.
This ensures that Copilot licenses can be allocated to individuals who can truly benefit from the advanced functionality it offers.
Time in Motion
Before rolling out Copilot organisation-wide, conduct a time in motion study at the user or departmental level. By measuring how Copilot impacts core tasks, organisations can quantify its benefits.
For instance, tracking how sales staff spend their time before and after using Copilot can reveal significant gains in productivity and competitive advantage.
Special Deals and Incentives
Microsoft is placing a significant emphasis on AI, and this focus is likely to result in incentives for Copilot adoption. Customers should be prepared to evaluate the costs and benefits of these new features effectively.
Acquiring discounted licenses for users who will not realize substantial productivity gains can lead to shelfware. As Microsoft continues to invest in AI, customers should anticipate incentives during contract negotiations.
Copilot License Optimization
To prevent license creep and ensure cost-effectiveness, customers should monitor Copilot adoption and its associated benefits regularly. This level of governance is crucial to maximizing the value of Copilot licenses.
In Conclusion
Microsoft Copilot represents a significant leap in the integration of advanced machine learning and natural language processing into everyday work. Its diverse capabilities and potential to boost productivity make it a valuable addition to Microsoft’s offerings. However, understanding its licensing strategy, profiling users, and measuring its impact are essential steps to harness its full potential.
As Microsoft license experts, we can help you demystify Microsoft licensing to avoid and reduce cost and risk. If you have any questions relating to this or any other Microsoft licensing matter, please go to our website or contact us.
Karl O’Doherty is a Principal License Consultant at Version 1.
