Microsoft Licensing update | Copilot comes to Microsoft 365 Business

One of the most significant announcements at this year’s Microsoft Ignite was the introduction of Microsoft 365 Copilot Business, a tailored AI offering for small to medium-sized businesses (SMBs). Starting December 1, organisations with fewer than 300 users can add Copilot to any Microsoft 365 Business plan for around £16 per user/month, down from £24. 

Why this matters for your Microsoft Licensing strategy 

Historically, Copilot has been positioned as an add-on for Microsoft 365 Enterprise plans (E3/E5) at £25 per user/month. By introducing a lower-cost SKU for Business plans, Microsoft is sending two signals: 

AI isn’t just for big business

Copilot is no longer an exclusive enterprise feature. SMBs now have access to the same AI capabilities, showing Microsoft’s commitment to deeply embedding AI across all tiers of its MS365 licensing. 

Potential enterprise evolution 

With Copilot now bundled into Business plans at a reduced price, could we also see integration into Enterprise suites, perhaps as part of E5 or even E3 with compliance and security add-ons? Ignite announcements around Work IQ and Agent 365 reinforce this possibility. These innovations aim to make Copilot and AI agents core to the Microsoft 365 experience – not optional extras. 

Next steps 

With Cloud Solution Provider (CSP) renewal season approaching, it's important to understand Microsoft’s roadmap and gauge the impact on your own organisation. While Copilot isn’t yet included natively in E3/E5, the message is clear: AI will become integral to Microsoft 365. Expect future licensing updates where Copilot – and possibly agent governance tools – are bundled into enterprise suites, helping to reduce complexity and drive adoption at scale. 

Talk to your Ultima Account Manager for Microsoft Licensing Consultant to explore available discounts and discuss how to adapt your strategy with the latest changes in mind. 

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