WASHINGTON, DC – As Microsoft prepares to release the new Office E7 AI bundle (E7) on May 1 and reports show 33% growth in Copilot subscriptions, new research released today by the Coalition for Fair Software Licensing shows that 75% of workers believe Microsoft intentionally leverages productivity software dominance to push customers into its AI tools.
These results come amid unprecedented regulatory scrutiny of Microsoft’s anticompetitive licensing practices. At the center is Microsoft’s systematic lock-in across Azure, Office 365, identity management, communications, security, and AI, making it nearly impossible for customers to move to competing platforms.
The new E7 bundle would double-down on the very tactics regulators are scrutinizing. Media have reported that “only 3.3 percent of Microsoft 365 and Office 365 users who touch Copilot Chat actually pay for it.” The research shows workers understand exactly what Microsoft is doing: forcing employers into a costly AI package they don’t want, don’t value, and that threatens to squeeze competition out of the AI market entirely.
“Microsoft’s decision to launch E7 on May Day is no coincidence. It should send a clear distress signal for any organization already locked into the Microsoft ecosystem. For years, customers have borne the cost of that lock-in, paying a premium not for innovation, but simply for the ability to maintain flexibility. E7 is the latest extension of that model, and the reaction from workers underscores a growing reality: the cost is not justified.
“Despite Microsoft facing mounting regulatory scrutiny over its anticompetitive behavior, we fully expect the company to deploy every tool in its playbook to force existing customers into this new bundle. Regulators on both sides of the Atlantic should be watching closely and be poised to act quickly to protect customers.” – Ryan Triplette, Executive Director of the Coalition for Fair Software Licensing
Key findings include:
- Forced Migration:
- 75% believe Microsoft uses its dominance in productivity software to push customers into Microsoft AI.
- A majority of workers (57%) say their employer should NOT buy the E7 bundle at $1,100 annually per user — a 65% price increase from the current bundle.
- Worse Competition:
- 73% believe their employer is locked into Microsoft, limiting customer choice.
- 65% say the AI market would be more competitive without Office-Copilot bundling.
- Workers Want Choice:
- When asked which vendor workers prefer, only one in three choose Microsoft.
- Nearly half (47%) say they would rather their employer spend on a different AI tool than pay more to Microsoft for the E7.
- 78% of American workers think they could do their jobs just as well with another AI tool.
About Fair Software Licensing
The Coalition for Fair Software Licensing is a North American-based initiative seeking to unlock greater customer choice, innovation, and security in the cloud by advocating for the Principles of Fair Software Licensing. Our members span a cross-section of key industries, including healthcare companies, financial services businesses, as well as cloud and cybersecurity providers – each one has experienced or been exposed to anticompetitive and abusive software licensing practices in the cloud. Together, we are taking a stand against these predatory practices by advocating for the Principles of Fair Software Licensing to ensure more choice, innovation, and security in the cloud. To learn more about the Coalition for Fair Software Licensing, please visit FairSoftwareLicensing.com.