Microsoft Licensing Update August 2024, incl. Azure Open AI & M365 Copilot

Author:

Floris Klaver

Floris entered Microsoft Licensing in 2011. Seasoned in simplifying highly complex contracts and licensing environments for large and global organizations.

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Microsoft Licensing Update ... Microsoft Licensing Update August 2024, incl. Azure Open AI & M365 Copilot

Author:

Floris Klaver

Updates to the Product Terms

Universal License terms for Online Services
Privacy & Security terms
M365 Copilot
Intune
Azure Open AI

Universal License terms for Online Services

The Use of Content for Training clause under Gen AI terms updated with a clarification that you cannot use the Gen AI services to train a similar product, unless it is allowed in the Azure OpenAI specific terms.

Privacy & Security terms

Microsoft Defender Experts added to the core Online Services table. This is Microsoft’s Managed Extended Detection and Response  (MXDR) service.

Microsoft 365

The Copilot Services (Copilot for M365, Copilot for Sales, Copilot for Services) have updated license prerequisites. Copilot for M365 can now also be bought on top of an Education A1 plan (M365/O365) and Copilot for Sales and Copilot for Services can now be added to M365 Business Basic, M365 F1/F3/A1/A3 and A5 and O365 F3/E1/A1/A3 and A5.

Intune

The Frontline worker products that were added to the Enterprise Agreement (EA) availability table in April 2024, have now also been added to the Microsoft Customer Agreement (MCA) availability table. This means you can now purchase these services under both the EA and the MCA.

Azure

Azure Open AI Services fine-tuning

Under the Azure Open AI Service terms and conditions, a clause was added for the Use of Content for fine-tuning. This clause states that you may use the Azure Open AI Service to create synthetic data used solely to fine-tune the following model types: 1) Azure Open AI models, 2) Other Azure AI custom models, 3) fine-tunable models in the Azure AI model catalog, and 4) models that are designed to modify Inputs or Output content and are deployed in one or more applications that interact with Microsoft Gen AI Services. Other fine-tuning is apparently not allowed.

Azure AI Content Safety Clause

Azure AI Content safety clause was moved under the Azure Open AI Service section. To reiterate: The Azure AI Content Safety feature can be used by customers to filter out harmful content, but it cannot be used to collect that harmful content. If you provide sample content to the service, you allow Microsoft to review and use that content and you as the customer will abide by the requirements coming from the documentation.

Floris has a strong technical background and a wealth of experience in Microsoft licensing and negotiation. Floris helps LicenseQ’s clients actively expand their licensing knowledge, improve their license position, mitigate possible exposure, negotiate with Microsoft and helps to reduce or optimize their Microsoft spend. Floris has worked in software licensing since 2011 and was employed at Microsoft during their transformation from a software vendor to a cloud solutions vendor. If you are in need of support or an extra pair of expert eyes on your Microsoft related licensing queries, please reach out to Floris via LinkedIn so we can set up a meeting to discuss possibilities.

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