The virtual transformation company is in talks with Microsoft about the next edition of its volume deal, adding the extent to which Copilot will cover for M365 use.
Chief Executive Chris Fechner told a Senate inquiry into AI last week that the existing volume supply agreement (VSA), which covers 180,000 licenses for Microsoft Office and access to other products from Microsoft and through the federal government, would expire. in mid-2025.
Its terms were agreed in mid-2019, before Copilot lifestyles and generative AI emerged in their current form.
The government conducted a six-month test of Copilot for M365 that ended on June 30 and involved about 7,400 employees.
You can do this under the existing VSA, where Copilot is considered an “add-on product. “
“We won a bid from Microsoft for a discounted launch trial for a small cohort to demonstrate evidence of [Copilot’s] capability,” Fechner said.
It said the discount was 15 percent off the “standard value of the e-book”; Microsoft lists $44. 90 per user per month on its website, the final value paid by the government is unclear.
Fechner said that because some agencies tested Copilot late, Microsoft extended the rollback beyond June 30.
“We got an extension of Microsoft’s pricing capabilities, allowing agencies to continue this feature if they choose,” Fechner said.
“However, some participants in the expired trial felt they needed more time to officially compare it. “
Fechner said the DTA is currently conducting a formal evaluation to measure the productivity gains that come with Copilot, which may inform long-term decisions about the extent to which it is used in production.
“We’ll have done that through the end of September, and the goal is for that report to be available so that agencies can make their own decisions about whether or not they would possibly need to use Copilot, and what other opportunities they would have. We may need to try to satisfy the functions of Copilot,” Fechner said.
As for how long the use will be allowed, Fechner said it’s an ongoing discussion while the next VSA is negotiated.
“We are still talking to Microsoft about various adjustments to the volume feed agreement, and this volume feed agreement has a new iteration that is scheduled for mid-2025, so we are investigating what the volume feed agreement may mean. inclusion of new products such as Copilot. to upcoming licensing agreements with the Commonwealth,” he said.
Fechner added that the inclusion of Copilot is necessarily the most important factor envisaged in the context of the upcoming VSA.
“Other significant adjustments are also proposed in this contract, such as the division of safe products into individual products that are ultimately grouped together,” he said.