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Image: New Microsoft 365 licenses: A game changer for business leaders

The power of AI tools to drive business success

In today’s fast-paced digital landscape, businesses are constantly seeking ways to streamline processes, boost productivity and enhance content creation. With industry giants like Salesforce and Microsoft leading the charge in utilizing AI tools, Microsoft 365 Copilot has emerged as a game changer for business leaders and users. This powerful tool promises significant business value through time-saving capabilities, such as the ability to find and build content quickly and easily.

Unleashing productivity with Copilot

Microsoft 365 Copilot has garnered rave reviews from customers who have reported immediate productivity improvements. By leveraging AI technology, Copilot empowers users to work smarter, not harder, by providing them with the tools they need to optimize their workflow and effortlessly find the information they seek. 

However, before deciding if Copilot is the right fit for your business, it’s essential to evaluate the associated costs and ensure you only invest in what you truly need. This is where the Flexera tool comes into play, as it helps you assess the potential costs and provides insights into adoption and usage, eliminating the waste of unused or underutilized licenses.

Technical and licensing requirements

To take full advantage of the new capabilities offered by Copilot, companies must meet certain technical and licensing requirements. It’s crucial to evaluate and prepare for Copilot implementation by ensuring your organization has the necessary infrastructure in place.

  • Copilot users must have a Microsoft 365 E3 or E5 license
  • Customers need to have an active directory account
  • Aligning your network with Microsoft 365 connectivity principles is essential for connecting to the required Microsoft 365 endpoint taxonomy on which Copilot services rely
  • Enabling plugins and unblocking web sockets from endpoints is necessary
  • Companies should verify that Copilot aligns with their internal security policies

Evaluating costs and pricing options

While the benefits of Copilot are undeniable, it’s crucial to analyze whether the additional costs are justified for your business. Microsoft offers several pricing options, with the current rate set at $30 per month per user.

It’s worth noting that there may be additional costs associated with Copilot such as the Copilot Studio, which provides enhanced message capacity. This feature comes with a list price of $2,400 per year. By leveraging the Flexera tool, businesses can easily understand the different licensing metrics that directly impact costs, making the evaluation process simple, automated and up-to-date.

Flexera SaaS Manager – Microsoft 365

ChatGPT: An alternative solution

While Copilot offers an array of features, ChatGPT is an alternative solution which has comparable pricing at $30 per month per user. The decision between Copilot and ChatGPT depends on the level of adoption of Microsoft solutions within your organization. The built-in integration and reporting capabilities of Copilot provide a seamless experience, particularly for customers using Microsoft Dynamics for ERP and/or CRM. Salesforce also offers an AI solution which can be attractive for customers that use the Salesforce CRM tools and have use cases around increasing sales or service worker productivity.

Microsoft’s Dynamics 365 prices surge amidst Copilot integration

By now, many of you have heard about the recent price increases for Microsoft Dynamics. Although this marks the first significant price hike in the past five years, it shouldn’t catch anyone off guard. Inflation is driving prices upward across the board, and even Salesforce, a competitor to Dynamics CRM, raised its prices last year.

For Microsoft customers, the increase appears to be around 9%. As I discuss in my Salesforce blog, the term “sticky” for an application aptly describes Microsoft Dynamics CRM, as most customers are unlikely to consider migrating to another CRM solution, especially those who also rely on Dynamics ERP solutions. The seamless integration between these systems makes switching a challenging endeavor.

In terms of market share, Dynamics CRM dominates in the manufacturing and distribution industries, while Salesforce enjoys approximately 30% market share. Dynamics CRM lags behind at around 2%. However, Microsoft leads the way in Dynamics ERP solutions, surpassing competitors like SAP and Oracle.

Software pricing defies the physics principle of “what goes up must come down.” Don’t expect prices to decrease anytime soon. In fact, last year, Microsoft increased its cloud pricing across the board, so these types of increases should come as no surprise.

Some argue that the value CoPilot provides justifies the higher Dynamics costs, while some argue it is another price hike in response to the inflationary economic climate we’re experiencing—we’ll be monitoring the overall sentiment as time presses onward.

For customers, failing to manage SaaS could lead to higher costs, which may necessitate raising prices for their own customers—especially in competitive industries—like wholesale distribution, where operating with tight margins is essential. To stay ahead of the competition, businesses must strategically manage costs.

When customers analyze their SaaS licenses and user adoption with Flexera, they can potentially save up to 30%. Analysts estimate that about 30% of SaaS licenses remain unused or underutilized. Not only can you offset these price increases through continuous optimization and adoption efforts, but you may also reduce your overall SaaS spend.

Embracing the power of Microsoft 365 Copilot

One thing is for certain, Microsoft 365 Copilot has revolutionized the way business leaders and users approach content creation and productivity. By providing time-saving features and streamlining workflows, Copilot empowers organizations to maximize their potential and achieve success.

To ensure a smooth transition to Copilot, it’s crucial to meet the technical and licensing requirements outlined by Microsoft. By evaluating the costs and pricing options, businesses can make informed decisions about the value Copilot brings to their operations.

So why wait? Harness the capabilities of Microsoft 365 Copilot to drive your business toward a successful future, and employ Flexera One SaaS Manager to optimize and rightsize your business.

Flexera One SaaS Manager – Microsoft 365 – Insights

Additional information

  • It’s recommended to schedule a consultation with a Flexera representative to discuss the specific IT asset management needs and requirements of your organization.
  • Keep in mind that while Copilot offers immense value, it may not be suitable for every business. Evaluate your organization’s unique needs and goals before making a decision.
  • Stay up to date with the latest updates and enhancements to Microsoft 365 Copilot by regularly visiting the official Microsoft website and exploring community forums.

Learn more about Flexera One.

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