Gartner Insights Abstract

Take 3 Critical Steps When Negotiating Microsoft 365 Copilot

Published: 09 January 2024

Summary

Microsoft Copilot for M365 (M365 Copilot) holds promise, but careful evaluation of Microsoft’s workplace generative AI offering is needed. Sourcing, procurement and vendor management leaders must assess stakeholder needs, identify required concessions, fully review T&Cs, and uncover hidden costs.

Included in Full Research

Overview

Key Findings
  • Urgency from within organizations and Microsoft’s push to sign new Copilot for Microsoft 365 (M365 Copilot) licenses are putting pressure on sourcing, procurement and vendor management (SPVM) leaders to quickly evaluate the risks and opportunities of this new offering.

  • An impulsive decision to license M365 Copilot without the proper due diligence can result in license overlaps, T&Cs instability, security and data risks, and loss of leverage on future renewals.

  • With the cost of $30 per user per month, Copilot could double your M365 spend, with potential further costs through significant indirect fees.

Recommendations
  • Step 1: Engage with business and technical stakeholders

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