Exceeded expectations by 260%! Microsoft Office 365 Copilot annual fee is 360 US dollars, AI commercialization space is completely opened

Source: Science and Technology Innovation Board Daily

Author: Zheng Yuanfang

After the big-step innovation of Microsoft Office “family bucket”, the To B pricing of Microsoft 365 Copilot has finally been officially released.

On July 18, local time, Microsoft announced at the Microsoft Inspire conference **Microsoft 365 Copilot prices for business customers-Microsoft 365 E3, E5, Business Standard and Business Premium customers will be priced at $30 per user per month **.

According to reports, Microsoft 365 Copilot can help enterprises reason about all business data, including asking questions and getting answers from the network.

The tool is based on business data in Microsoft Graph, including all emails, calendars, chat records, documents, etc., and can generate the latest information from morning meetings, emails and chat records, and send them to the team; help users understand weekly project progress; or create a SWOT analysis from internal documents and web data. (For details, see the previous report of “Kechuangban Daily”: Beating workers trembles and investors are ecstatic! GPT-4 supports Microsoft’s “family bucket” and turns into a productivity “big killer”)

Jared Spataro, vice president of Microsoft’s modern work and business application business, once said that through Microsoft 365 Copilot, “your words become the most powerful productivity tool on the planet. Copilot has unveiled a new era of computing that will fundamentally change The way we work.”

Customer enthusiasm also confirms the power of this tool-Microsoft has expanded the Microsoft 365 Copilot paid early access program to 600 enterprise customers around the world in May, including KPMG, Lumen and the UAE National Development Bank wait. The more customers use Copilot, the more enthusiastic they become about Copilot, and “soon, no one will want to work without it,” Microsoft said.

Boosted by this news, Microsoft’s US stock also rose nearly 4% on the same day, hitting a record high.

What is the concept of the new “$30 per user per month” pricing?

In fact, foreign media reported in June that Microsoft Office 365 Copilot had expanded the trial scope and explored the pricing model. Of the more than 600 enterprise customers trialing the AI capabilities of Microsoft Office 365,** at least 100 customers have paid an additional $100,000 annual fee ($100/year/account) for each of the 1,000 subscription accounts, which means, These 100 customers paid an additional 40%** for AI features compared to the original enterprise subscription.

And Microsoft’s latest “$30 per user per month” pricing can be converted into “$360 per user per year”-this price is 260% higher than previous expectations. Willingness to pay more for AI capabilities**.

According to Guohai Securities, Microsoft has two potential pricing models in exploring the wide application of AI functions: 1) charge for AI functions as additional features of basic Office subscriptions; 2) add AI functions to all enterprises In the user’s Office, increase the price of all subscriptions across the board when a customer renews their subscription plan.

Furthermore, a number of brokerages pointed out that Microsoft Office365 has successfully raised prices for the B-side and charged for AI functions. Effectively increase the ARPU value of office software products**.