AI application &#34;Blooming Flowers&#34;, Microsoft launched AI version of Office 365, its pricing is much higher than expected, and Microsoft's stock price has risen to a record high.
On Tuesday, Microsoft announced at the Global Partner Conference that the pricing of Microsoft 365 Copilot for subscription merchants of Office 365 E3, E5, Business Standard, and Business Premium is $30 per user per month.
This means that the software price has increased significantly after adding AI features, and Microsoft has more than doubled the pricing of Office services for business users. In addition, Microsoft stated that it will provide Bing Chat Enterprise as a standalone subscription service, focusing on protecting user privacy, with a pricing of $5 per user per month.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/edad7c98-31d9-4833-a0ec-c2159a7a0588.jpeg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/edad7c98-31d9-4833-a0ec-c2159a7a0588.jpeg"/>
In the announcement, Microsoft pointed out that Microsoft 365 Copilot can inspire your creativity in Microsoft Word, analyze data in Excel, design presentations in PowerPoint, clean up your Outlook inbox, and summarize meeting content in Microsoft Teams...
Overnight, Microsoft's stock price rose by 4% to $359.49, reaching a record high at the closing price.
<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/48fc44cc-d1e3-4756-92c5-10a978db000d.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/48fc44cc-d1e3-4756-92c5-10a978db000d.png"/>
In response to this, Bernstein analyst Mark Moerdler pointed out in a research report that the price of 365 Copilot is higher than his expectations, equivalent to a price increase of 53% to 240%, depending on specific customers using different versions. Moerdler stated:
<blockquote>
The focus of this release is Microsoft 365, not the smaller tools and software in Office 365. The company may consider this not only as a way to further promote new subscriptions, but also as a way to move more users to Office with higher average prices.
</blockquote>
Wedbush analyst Dan Ives believes:
<blockquote>
The announced pricing will expand Microsoft's cloud computing and artificial intelligence market opportunities, and cloud computing revenue can be increased by 20% as early as 2025.
</blockquote>
Citigroup analyst Tyler Radke also wrote:
<blockquote>
The pricing is far higher than our own forecast of $5 to $20 per month, although it may still be several months away from a full launch, we believe this is a tremendous positive development.
</blockquote>

MSFT

Microsoft focuses on Microsoft 365, which will not only drive further growth in Office subscriptions but also significantly increase the average revenue per user. This pricing strategy could potentially boost cloud computing annual revenue by 20% by 2025.

Premium far exceeds expectations, how does Wall Street view Microsoft's AI pricing strategy?