Monthly Billing for Copilot: A New Option for Users

Starting from 1^st December 2024, users can opt for a monthly billing plan when they purchase or renew their annual subscriptions for Microsoft 365 Copilot, including Copilot for Sales and Copilot for Service. This change provides an additional option for companies to spread out their licensing costs, inline with other Microsoft 365 subscriptions.

What’s Changing?

Previously, Microsoft 365 Copilot subscriptions required an upfront annual payment. Whilst this model worked well for many businesses, it posed a challenge for smaller enterprises and individual users who prefer more convenient payment schedules.

It posed a similar challenge to medium-sized businesses that were considering company-wide adoption of Copilot, but were understandably reluctant due to the high upfront costs.

Recognising this, Microsoft has now introduced an annual commitment-monthly payment model. This means that whilst businesses still commit to a year-long subscription, they can now pay in monthly instalments.

The Details

This update allows users to opt for a monthly payment plan, avoiding the high upfront price. It’s important to note though that this monthly billing option comes at a 5% premium compared to the annual upfront payment. However, the convenience it offers can outweigh the slightly higher cost for many businesses.

Microsoft’s new flexible billing option for Microsoft 365 Copilot is a welcome change that addresses the needs of a broader range of business users. By offering the choice to pay monthly, Microsoft is making its powerful suite of tools more accessible to everyone, from large enterprises to individual users.

For more details, you can read the full announcement on the Microsoft Community Hub.