Fetching from the wire…
Markets2026-09-25 · source-backed
Bloomberg reported that from as early as October, Microsoft discounts Microsoft 365 Copilot 30% for 1,000 to 10,000 seats and 50% above 10,000. The $30 list price hasn't moved since launch. The deeper discounts require committing to Copilot Credits at one cent each, billed separately for Copilot Cowork tasks. (writeup citing Bloomberg) A 10,000-seat bill goes from about $3.6M to $1.8M a year while part of the spend moves to consumption. The list price survives and the revenue model changes underneath it, which is the trick every vendor in this category is now attempting.
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In its Q3 FY2026 earnings ($82.9B revenue, +18%), Microsoft disclosed something more important than the revenue number: a structural shift in how software gets sold. The company's AI business crossed $37B annual run rate, up 123% year-over-year. But the real signal is the pric...
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