Microsoft's New $99 E7 Bundle Is a 65% Price Hike for AI
Microsoft bundles Copilot into a pricier E7 package after just 3% of business users opted to pay for AI separately.
Microsoft just dropped its E7 enterprise bundle at $99 per user per month. That's a 65% price jump designed to shove AI tools into every corporate worker's hands.
Here's the problem Microsoft is trying to solve: out of more than 450 million business users paying for its workplace software as of January, only around 3% were also shelling out for Copilot. That's an abysmal adoption rate for what Redmond considers its AI future.
The fix? Stop making AI optional. Bundle it in and jack up the price.
It's a classic Microsoft distribution play — use the existing Office footprint to force-feed a new product category. Whether enterprise IT departments swallow the cost increase without pushback remains to be seen. But with half a billion seats in play, even marginal conversion moves billions in revenue.