Microsoft set to approve 30-50% Copilot discounts, shifting revenue toward consumption billing
Microsoft told its sales staff this week that starting in October it will approve 30% discounts for 1,000-10,000 Copilot seats and 50% above 10,000, in exchange for usage-based commitments on specific features.
On September 24, The Information, citing three people with knowledge, reported that Microsoft told its sales team this week that it will approve new Copilot discount tiers starting in October. Customers buying 1,000 to 10,000 Copilot seats receive 30% off, while customers buying more than 10,000 seats receive 50% off. In exchange, customers must commit to usage-based billing for specific Copilot features.
Against a $30-per-user-per-month list price and a current installed base of 20 million paid seats, this represents a deliberate shift from subscription revenue to consumption billing. The discount program coincides with the rollout of a revamped Copilot 'super app.' Microsoft separately announced on September 22 that the web-based Copilot on Windows 10 and 11 will be replaced by a native app with an Alt+Space quick-view shortcut.