Rishi Bansal
Technology veteran with 15+ years of experience across infrastructure and enterprise technology. Writing about AI, emerging technologies, and the evolving intersection of tech and business.
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Microsoft's Two-Track AI Bet: How the E7 Bundle and Copilot Cowork Credits Reshape Microsoft 365 Contracts
·7 mins
Microsoft is making its AI revenue model explicit in 2026: bundle Copilot into a new top-tier SKU called E7 at $99 per user per month, then bill every agent action separately through Copilot Credits. Together these moves push enterprise Microsoft 365 spending from a flat per-seat line into a hybrid model where the headline seat price covers the license and the metered consumption covers the work. For IT leaders staring at renewal cycles, this changes how the contract needs to be modeled — and where the overage risk actually lives.