WhichM365 · by Tech Simplified

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Government cloud (GCC, GCC High, DoD)
  • Government uses G-SKUs (G1/G3/G5) and Defender/Purview Suite for GCC, GCC High, and DoD — not the commercial E-SKUs.
  • Government pricing is partner-only and subject to ITAR/CUI handling rules. Prices are not shown here.
  • Feature availability differs from commercial; some items show TBD or Not Planned in GCC High. Verify per workload before quoting.
  • Government July 2026 increases are phased where any rise exceeds 10% (e.g., Office 365 G3 +13%, M365 F1 +33%, M365 F3 +25%).
  • GCC High added a Business Premium tier and a new 50 GB mailbox option in 2026 — confirm current availability with your Microsoft rep, since government cloud SKUs change faster than commercial ones.
  • Copilot Chat Analytics and URL time-of-click protection (see What's new) now extend into GCC/GCC High/DoD as well, not just commercial.
Copilot Cowork — usage-based cost estimator

Cowork is a usage-based add-on, not a per-seat price. It requires a Microsoft 365 Copilot license as a prerequisite, then bills separately on Copilot Credits at $0.01 per credit (pay-as-you-go; volume discounts apply on pre-purchase). The estimate below is a rough planning range only — actual spend varies with task complexity and usage.

  • Per-task credit ranges (Microsoft's July 2026 planning estimates): Light 100–300, Medium 300–700, Heavy 700+ (Microsoft does not publish a heavy-task ceiling — treat any heavy figure as a floor, not a cap).
  • These ranges assume a frontier model. Microsoft's lighter model is designed to cost less, so treat this as a planning ceiling on the low/medium bands, not a floor.
  • Credits pool at the tenant level; this shows estimated tenant monthly spend, not a per-seat charge.
  • A Copilot license is still required per user and is billed separately from this usage — no Cowork entitlements are included with the Microsoft 365 Copilot subscription.
  • Pay-as-you-go is $0.01/credit with no commitment. A 1-year Pre-Purchase Plan (P3) offers volume discounts from 5% (300K credits) up to 20% (300M credits) for tenants that want to lock in a rate.

What are Copilot Credits?

Copilot Credits are the shared usage currency behind Cowork, Work IQ APIs, Copilot Studio agents, and AI features in Dynamics 365 and Power Platform. You pay for the work performed, not a flat per-seat fee. Think of it like a utility bill: the Copilot license is the fixed connection, the credits are the metered usage. List rate is $0.01 per credit pay-as-you-go, with prepaid plans offering volume discounts. Admins can set spending limits and alerts, and usage is off until switched on.

Important distinction: native Microsoft 365 Copilot experiences — Copilot Chat, AI in Word/Excel/PowerPoint/Outlook/Teams, and the built-in Researcher, Analyst, and Facilitator agents — do not incur separate Work IQ charges. Credits only apply when Work IQ is accessed directly through its APIs inside a custom-built agent or solution.

Microsoft: Copilot Credits usage-based billing overview ↗
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