The interesting question is how long it takes enterprises to notice the capability/pricing tradeoff, and whether they respond by limiting access to the strongest models internally.
The part that worries me is that this market is still very early. Most developers and organizations are still learning how to use these tools effectively. Raising the experimentation cost this much may slow down the discovery process that makes the tools valuable in the first place.
Due to data governance it will be difficult to move to a different provider.
At the same time, this price hike is so large that the ROI on copilot will be a net negative.
I think what will ultimately happen is that we will not pay Microsoft more than we currently do and we'll simply end up with less AI usage in the company and a reduction in productivity.
It's not turning consumption based because there are a ton of these licenses just sitting idle.
These companies already lost the spark/innovation years ago. They're just using LLM's as a way to survive. Wonder how long that lasts.
What we're seeing across the board is every software company tossing AI onto their name or sales pitch and no one understanding what that actually means. But we will spend money on it because of FOMO.
I really question if we're reaching the end of the hype cycle to the point. I wish I were brave enough to put money on it. It feels like there was a command from up top to 'do something with AI' and leadership is scambling for some resume-building projects vs doing the hard work they should've done the past two years at a people and process level.