Ben Thompson talking about the impact of AI on seat-based business model.
[…] when Microsoft revealed how they will handle the potential business impact of AI reducing seats, which is a bit of a problem for their seat-based business model: the company is going to bundle AI into a new higher-tiered enterprise offering, E7, which is going to cost twice as much — $99 per seat per month — as the formerly top-of-the-line E5. That’s a big increase, which Microsoft needs to justify with AI that actually makes those seats more productive, and the product they launched with the new bundle was Copilot Cowork.
This never occurred to me. AI replaces humans. Organisations need less licenses for their enterprise software. Enterprise software makers double the price of their licenses. Organisations pay the same amount for—supposedly—increased productivity.
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