Microsoft introduced several licensing updates on 1 December. There are also changes to Power Platform Dataverse storage and new promotions for Microsoft Cloud products.
Content
New licenses
Microsoft 365 Copilot Business (for existing customers)
As introduced during Ignite in November, Microsoft has prepared a new, more affordable Microsoft 365 Copilot Business license for organizations with up to 300 users.
- You must combine this new Copilot license with a Microsoft 365 Business Premium, Standard, Basic, or Microsoft 365 Apps for Business license.
- An Enterprise plan cannot be used as a base license. Enterprise plans require the Microsoft 365 Copilot license.
Customers can now ask product-specific questions on the Copilot product sites.
So I asked the assistant:
What is the difference between Microsoft 365 Copilot and Microsoft 365 Copilot Business, also in a functional perspective?
Microsoft AI Product Assistant:
Microsoft 365 Copilot is an AI-powered tool that integrates with Microsoft 365 apps like Word, Excel, PowerPoint, Outlook, and Teams, and is available as an add-on for business and enterprise plans. It’s managed by organizations and offers enterprise-grade data protection and scalable licensing.
Microsoft 365 Copilot Business refers to specific business plans (Business Basic, Standard, and Premium) that bundle Copilot with Microsoft 365 apps and additional security, collaboration, and device management features. These plans are designed for small to medium-sized businesses and enterprises looking for integrated AI solutions to boost productivity and collaboration.
There is no significant functional difference between Microsoft 365 Copilot and Microsoft 365 Copilot Business in terms of features and capabilities. Both offer the same AI-powered tools integrated into Microsoft 365 apps, such as Teams, Word, Excel, PowerPoint, and Outlook, with Copilot Chat, Copilot Agents, and Copilot Analytics, plus enterprise-grade data protection and IT management controls. The main difference is in licensing and deployment context—“Business” refers to business-focused deployment and access to business intelligence tools, but the core features remain consistent.
The standalone license “Microsoft 365 Copilot Business” is intended for existing Microsoft 365 Business Premium, Standard, Basic, and Microsoft 365 Apps for Business customers. The product ID is CFQ7TTC0MM8R.
Microsoft 365 Copilot Business (for new orders)
Microsoft now offers three Copilot Business license SKUs for new Microsoft 365 Business Premium, Standard, and Basic orders.
- Microsoft 365 Business Premium and Microsoft 365 Copilot Business
This SKU is available with and without Microsoft Teams. The product ID is CFQ7TTC0LCHC.
- Microsoft 365 Business Standard and Microsoft 365 Copilot Business
This SKU is available with and without Microsoft Teams. The product ID is CFQ7TTC0LDPB.
- Microsoft 365 Business Basic and Microsoft 365 Copilot Business
This SKU is available with and without Microsoft Teams. The product ID is CFQ7TTC0LH18.
Microsoft Entra Agent ID
Microsoft Entra Agent ID is in Public Preview, currently a free license (for up to 10 million accounts), and is linked to the documentation. The product ID is CFQ7TTC10KQB.
As assistive and autonomous agents become more prevalent in organizations, new security, governance, and compliance challenges must be addressed. Microsoft Entra Agent ID extends the comprehensive security capabilities of Microsoft Entra to agents, enabling organizations to build, discover, govern, and protect agent identities. Security for AI spans multiple Microsoft Entra features and is integrated through Microsoft Entra Agent ID and the Microsoft agent identity platform for developers.
The solution includes the Microsoft Entra Agent ID Platform, Agent Registry, Microsoft Entra ID Governance, Microsoft Entra Private Access, Microsoft Entra Internet Access, Conditional Access, and Identity Protection Microsoft Entra value.
Based on the included service plans, I am not sure whether this license was intended to be published as a free offering or added by mistake, or it’s limited to Copilot agents in Entra ID. It is similar to the Microsoft Entra Suite.
The license contains six service plans:
- Agent Registry
- Entra Identity Governance
- Microsoft Entra ID P1
- Microsoft Entra ID P2
- Microsoft Entra Internet Access
- Microsoft Entra Private Access
Power BI Premium EM3
Microsoft has introduced a new license for Power BI Embedded Analytics. The product ID is CFQ7TTC0LHQJ.
Power BI Embedded is for ISVs and developers who want to embed visuals into their applications.
Applications using Power BI Embedded allow users to consume content stored on Power BI Embedded capacity. Power BI Embedded is shipped with an A SKU.
This EM3 license SKU enables 32 capacity units and 4 Power BI cores.
Licensing changes
Increased Dataverse storage for Power Apps, Power Automate, and Power Pages
As communicated in MC1181915 (October 2025), Microsoft increased the default Dataverse storage across all Dynamics 365 apps (excluding Business Central). Furthermore, Dataverse and storage for Dynamics 365 ERP applications (Finance, Supply Chain, Commerce, Project Operations, Human Resources) are now combined into a shared pool per tenant.
Below is a comparison from the Power Platform licensing guide (October vs. December 2025). Changes are highlighted.
Increased Dataverse storage for Copilot Studio
The Dataverse capacity for Copilot Studio was also increased, from 5 to 15 GB.
Security Copilot in Microsoft 365 E5
As announced at Ignite, organizations with Microsoft 365 E5 will receive 400 Security Compute Units (SCU) per 1,000 paid user licenses, up to 10,000 SCUs per month at no additional cost.
Rollout began on 18 November 2025 for existing Security Copilot customers with Microsoft 365 E5 and will continue in the coming months for all Microsoft 365 E5 customers. Customers will receive a 30-day advance notification before activation.
New Microsoft Cloud Promotions
Microsoft introduced new promotions starting on 1 December 2025.
- Microsoft 365 Copilot Business
- Microsoft 365 Business Premium and Microsoft 365 Copilot Business
- Microsoft 365 Business Standard and Microsoft 365 Copilot Business
- Purview Suite for Microsoft 365 Business Premium (for Copilot customers)
| Product | Product ID | Promo Offer | MinSeats | MaxSeats | StartDate | EndDate | Notes | |
|---|---|---|---|---|---|---|---|---|
| Microsoft Entra | Microsoft Entra Suite | CFQ7TTC0NZT8 | 50% | 10 | 300 | 01.10.2025 | 31.12.2025 | |
| Microsoft Entra Suite Add-on for Entra ID P2 | ||||||||
| Microsoft 365 Copilot | Microsoft 365 Copilot - 15% off (new Copilot customers) | CFQ7TTC0MM8R | 15% | 1 | 10 | 01.10.2025 | 30.06.2026 | |
| Microsoft 365 Copilot - 15% off (existing Copilot customers) | CFQ7TTC0MM8R | 15% | 1 | 10 | 16.06.2025 | 31.12.2025 | ||
| Microsoft 365 Copilot Business | CFQ7TTC0MM8R | 15% | 1 | 300 | 01.12.2025 | 31.03.2026 | NEW | |
| Microsoft 365 Business Premium and Microsoft 365 Copilot Business | CFQ7TTC0LCHC | 25% | 1 | 300 | 01.12.2025 | 31.03.2026 | NEW | |
| Microsoft 365 Business Standard and Microsoft 365 Copilot Business | CFQ7TTC0LDPB | 35% | 1 | 300 | 01.12.2025 | 31.03.2026 | NEW | |
| Windows 365 | Windows 365 Enterprise | CFQ7TTC0HHS9 | 20% | 1 | 10 million | 01.05.2025 | 30.04.2026 | |
| Windows 365 Business | CFQ7TTC0J203 | |||||||
| Windows 365 Frontline | CFQ7TTC0R595 | |||||||
| Windows 365 Cross Region Disaster Recovery | CFQ7TTC0SWNG | |||||||
| Windows 365 Disaster Recovery Plus | CFQ7TTC11SSF | |||||||
| Microsoft Purview | Microsoft Purview Suite (only in combination with M365 Copilot) | CFQ7TTC0LHR4 | 50% | 1 | 10 million | 01.02.2025 | 31.01.2026 | |
| Purview Suite for Microsoft 365 Business Premium (just for Business, only in combination with M365 Copilot or M365 Copilot Business) | CFQ7TTC0LCHC | 50% | 1 | 300 | 01.12.2025 | 31.12.2025 | NEW | |
| Dynamics 365 | Dynamics 365 Customer Service Premium | CFQ7TTC0TDKX | 40% | 1 | 10 million | 01.10.2025 | 30.06.2026 | |
| Dynamics 365 Contact Center Voice | CFQ7TTC0TDL7 | |||||||
| Dynamics 365 Contact Center | CFQ7TTC0TDLC | |||||||
| Dynamics 365 Project Operations (3-year term only) | CFQ7TTC0HD4D | 40% | 1 | 10 million | 01.02.2023 | 31.12.2025 | ||
| Dynamics 365 Human Resources (3-year term only) | CFQ7TTC0HD4G | |||||||
| Dynamics 365 Customer Service Enterprise (3-year term only) | CFQ7TTC0LFDZ | |||||||
| Dynamics 365 Sales Enterprise (3-year term only) | CFQ7TTC0LFF1 | |||||||
| Dynamics 365 Sales Professional (3-year term only) | CFQ7TTC0LFN5 | |||||||
| Dynamics 365 Team Members (3-year term only) | CFQ7TTC0LFNJ | |||||||
| Dynamics 365 Customer Service Professional (3-year term only) | CFQ7TTC0LFNK | |||||||
| Dynamics 365 Field Service (3-year term only) | CFQ7TTC0LFNL | |||||||
| Dynamics 365 Finance (3-year term only) | CFQ7TTC0LGV4 | |||||||
| Dynamics 365 Commerce (3-year term only) | CFQ7TTC0LH2Z | |||||||
| Dynamics 365 Supply Chain Management (3-year term only) | CFQ7TTC0LH31 | |||||||
| Dynamics 365 Operations – Device (3-year term only) | CFQ7TTC0LHVJ | |||||||
| Dynamics 365 Operations – Activity (3-year term only) | CFQ7TTC0LHX0 | |||||||
| Dynamics 365 Finance Premium (3-year term only) | CFQ7TTC0NL21 | |||||||
| Dynamics 365 Supply Chain Management Premium (3-year term only) | CFQ7TTC0P17W |
