That does not just mean adding the Copilot to its office-work software , which will be rolled out in November. This week the firm will launch a Copilot for Windows, its operating system, which will be able to change your computer’s settings, generate images and summarise web pages. Copilots for its sales software and human-resources offerings are already available. One for its security software is in the works.
Putting itself in that position has been a long endeavour. Microsoft’s heyday was in the 1990s. The dominance of Windows as an operating system combined with a cut-throat business mentality made the firm mighty but roundly despised. A period of stagnation followed, as it lived off the revenue from Windows. When Satya Nadella took over in 2014, he shook things up. Windows would no longer be the firm’s main focus.
Second is Microsoft 365, which also accounts for about a quarter of revenue. That has been growing by about 10% a year of late, thanks to take-up among smaller businesses, especially in service industries such as restaurants. The third source of growth is cybersecurity. In earnings calls Microsoft executives have said it accounts for roughly $20bn in revenue . That is more than the combined revenues of the five biggest firms that provide only cybersecurity.
All this does not come cheap. At $30 per user per month, Copilots may mean a 52-83% mark-up, depending on the software package a firm uses. Jason Wong of Gartner, a research firm, says, “That is expensive compared to the licences but cheap if it is going to save you hours a week.”