Hey everybody, this is Venice with Rockhop, and I wanted to share my biggest takeaway from day two of Microsoft 365 Copilot Architecture Boot Camp, and funny enough, that is the licensing approach that is now rolling out regarding Copilot.
It was just announced that Microsoft is moving to a credits approach, which will mean that everything built in a Copilot and every user interaction in a Copilot will be worth a certain amount of credits. Organizations would purchase credits to cover all of the actions users are performing.
It's a pretty complex model. It's moving away from the message pack idea, partly rebranding the fact that Copilot is not just messaging, but moving to an agent. An agent takes actions that require a certain amount of capacity, and therefore need to be paid for with credits.
That all applies unless a Microsoft 365 Copilot license is in place. This operates like a platform license, meaning it provides integrated functionality across the entire Microsoft 365 stack and Copilot. On top of that, any Copilots that an organization builds are included with no additional cost.
The credits operate more as a pay-as-you-go system, which may make sense while ramping up user adoption of licenses. Still, it is complicated, and it may drive organizations toward using Microsoft 365 licenses.
So, there you have it—the big change of the licensing model. It mirrors the approach shared on day one of Microsoft's vision of future work on Microsoft 365 as the central platform.
Thanks for watching, and see you tomorrow.
