"The Microsoft 365 E7 licence becomes generally available on 1 May. The licensing model has been introduced to help fund the investments Microsoft is making to support artificial intelligence (AI) and the broader use of agentic AI across its product portfolio."
"According to Microsoft, it offers customers a convenient way to purchase consumption packs tied to seats or agents. Beyond the base usage covered by the user licence, customers are charged on pure consumption-based pricing, tied to token usage and consumption."
"Over the next three to five years, Microsoft's mix of consumption versus traditional seat-based models will evolve. It anticipates that customers will increasingly adopt hybrid models like E7, balancing predictability with the flexibility of consumption-based pricing."
Microsoft reported $82.9 billion in revenue, an 18% increase year-over-year. The Microsoft 365 E7 license, available from May 1, introduces a value-based licensing model. This model ties pricing to user consumption and aims to support investments in artificial intelligence. The E7 plan combines base usage rights with seat-based pricing, allowing customers to purchase additional consumption packs. Microsoft anticipates a shift towards hybrid licensing models over the next few years, adapting IT budgets to focus on business outcomes and value from token usage.
Read at ComputerWeekly.com
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