Microsoft have announced 3-year subscription terms on CSP for:
1) Microsoft 365 E3 (with and without Teams)
2) Microsoft 365 E5 (with and without Teams)
3) Microsoft Teams Enterprise
4) Microsoft 365 E5 Security
5) Microsoft 365 E5 Compliance
Numbers 1, 2, and 3 will be available from June 1, 2025 while 4 & 5 will come on July 1, 2025.
The price will be the same as 3 x 12-month subscriptions but of course, with the price protection against increases that a longer commit brings. It seems there will be a 100 SKU minimum for these 3-year SKUs.
This strengthens the push for smaller EA customers to move across to CSP and comes hot on the heels of the “channel transfers interface” to that launched in April to help partners renew Enterprise Agreements (EAs) into CSP and retain their existing rights to bundled Teams.
Microsoft have also announced enhanced investment in, and incentives for, CSP partners moving into FY26 from July 1st.
Microsoft Purview is a suite of products focused on data security, governance, and compliance across the Microsoft portfolio.
Microsoft first introduced Pay As You Go (PAYG) aka Consumption SKUs for Purview in January 2025 and now, from May 1, 2025 there are a new set. These new SKUs are aimed at protecting “your data as it moves across networks and through GenAI applications“.
The * is to note that Audit Standard is included within “Microsoft first party applications such as Microsoft 365 applications, Fabric, and Microsoft first party AI apps like Microsoft 365 Copilot, Security Copilot or AI applications custom-built using Copilot Studio“.
New metric/acronym alert! The 10,000 events for Insider Risk Management are known as a “Data Security Processing Unit (DPSU)”.
I notice that, for “Data Security Investigations”, Microsoft say:
“Data Security Investigations is billed through two meters: 1) the Data Security Investigations non-AI processing and storage meter and 2) Security Compute Units.
The Data Security Investigations non-AI processing and storage meter allows customers to store data related to an investigation. Security Compute Units are used to measure the computational capacity needed to run the AI analysis within DSI.”
Security Compute Units (SCUs) were introduced with Microsoft Security Copilot. It seems now that certain Purview PAYG usage may also consume your SCUs – needing further planning and budget insights.
Frontline Worker Use Rights have moved to the Universal Terms for Online Services from product specific pages
A new definition for “Frontline Worker License” has been introduced in the Glossary
“Frontline Worker License means a license for a Microsoft Product designated with an “F”, “FLW”, or “Frontline” as identified in the Product Conditions table of product specific terms, which are subject to the Eligibility to Assign Frontline Worker Licenses terms in the Universal License Terms for all Online Services.”
Added Windows 10 ESU Cloud Managed SKUs
Removed Dynamics 365 Fraud Protection and Fraud Protection Additional Capacity from Availability tables
Updated Windows 365 Frontline terms and grant Windows 365 access rights for Windows Cloud PC OS
Added Windows 365 Disaster Recovery Plus Add-on to Availability Table
Microsoft have launched a new addition to the Copilot family, confusingly called Microsoft 365 Copilot Chat.
Copilot Chat was already a thing (that is different to Copilot Biz Chat) and this seems to be a re-positioning as they add some new capabilities too. It is a basic, entry point tool that sits below Microsoft 365 Copilot.
Microsoft 365 Copilot Chat is free and has access to internet info to give “web-grounded” responses. Additionally it can interact with Agents (more on that later) and also has elements of the “Copilot Control System” to help with corporate data privacy.
The table below shows how it stacks up against the “full” Microsoft 365 Copilot product:
One of the new additions is that users of this free product can use 2 types of agents on a Pay As You Go (PAYG) basis, they are:
“Tenant Graph” grounded agents
Autonomous action agents
“Tenant Graph” grounded means agents that can access internal company data as well as internet information, giving answers with additional, organisation specific info and context. This is an additional PAYG per-message cost for M365 Copilot Chat users but is included within the M365 Copilot license – adding a new variable to consider when pricing up licensing options.
Autonomous actions are where the agent uses “generatively orchestrated triggers, topics, data connectors, and workflows” to act on behalf of a user. This is an additional PAYG per-message cost for all users – it is an additional cost even for users licensed with M365 Copilot.
For more info and details on the PAYG per-message pricing model – see my post here.
Microsoft are huge fans of the Pay As You Go (PAYG) licensing/billing model for various products and now it has been extended for M365 Copilot and Copilot Studio.
Agents created with Copilot Studio provide answers to users, and these answers are measured in “messages:
Classic Answers
These are static answers written when the agent is created and only change when manually updated. These cost 1 message.
Generative Answers
These are dynamically generated answers using the conversation’s context and other knowledge. These cost 2 messages.
Tenant Graph grounded
This is a new option and allows agents to access internal information in SharePoint and also other sources via Graph connectors. This information will be incorporated within “generative” answers given by agents. These cost 30 messages.
This capability is included for users licensed with M365 Copilot and is also available on a PAYG basis for other users.
Autonomous Actions
As the name suggests, these agents act on their own via “generatively orchestrated triggers, topics, data connectors, and workflows” to complete tasks, answer queries etc. These cost 25 messages.
These are NOT included with the M365 Copilot license, so using agents with autonomous actions will be additional spend on top of the $30 per user per month license…which is already an add-on to your existing M365 license!
How does the pricing work?
Each message costs $0.01 which seems very low…however…it can quickly start to add up. Here is an example from Microsoft:
12,800 x $0.01 = $128 in PAYG costs.
Not a huge amount, about $33,280 per year. However, that’s for 100 users. If you had 1,000 users in that scenario it becomes $332,800 per year which is a much more significant amount…it’s about the same as buying M365 Copilot licenses for those users in fact.
You can purchase messages in bundles of 25,000 for $200 per month ($0.008 per message) which can help reduce spend a little on PAYG.
It seems likely that the behaviour Microsoft are hoping to drive will be for organisations to start out with this model and then, as spend increases, move them across to M365 Copilot licenses to increase the stickiness and adoption of their latest focus product.
It’s the Microsoft Product Terms for February 2025:
Added Azure Managed Applications, Azure Resource Manager, and Cloud PC to the EU Data Boundary Services…which now also includes storage of Professional Services Data.
Added Microsoft Defender for Business customers can apply Defender for Business to five devices.
Removed Microsoft 365 Information Protection and DLP – Student Use Benefit Add-on from Availability and Prerequisite Tables.
Microsoft’s Get Licensing Ready (GLR) training platform is being shut down as of December 31st, 2024.
A mainstay of the Microsoft channel and pretty much every reseller salesperson’s introduction to the wonderful world of Microsoft licensing, GLR has been a trusty companion to many for decades. It has been around as long as I can remember (so at least 20 years) but it is now a casualty of Microsoft’s apparent lack of interest in licensing these days.
My post on LinkedIn has been one of the most liked, commented, and reposted for some time -showing the depth of affection for the platform…and also the concern that it’s going to get even more difficult for partners and customers to understand Microsoft licensing.
I haven’t done GLR for a few years but I plan to take them all again and get one last set of certificates for posterity’s sake.
Cloudy with a chance of Licensing 