They are bragging about 1m developers on copilot, let's say 20$/m to be generous - that's 20m$/month - they probably have larger single client revenues than that and I doubt copilot is high margin (I bet I spend more than 10$/month in compute by the queries I generate).

Unless this goes to hundreds of dollars/month (which I would pay if it was a good experience) I don't see this making a dent.

Probably it will be using license for enterprises with decent margins, and it will be much higher cost then. Soon it's no-brainer for all enterprises to buy. I truly think that a little bit more time and engineering costs would be down 80% - 90%, because of all this tooling.

Maybe they think of waiting until everyone uses Copilot and then jack up the price.

But that wouldn't quite work.

The upsell is easy to envision though. Just like GitHub.

If developers all use it for their own projects, you have a viral growth engine. And you can charge a lot more for the enterprise license.

SAML, fine-tuning on your private repos, etc. - this could be a very expensive seat with all the options added.

They already have enterprise licenses at 20$/month I generously quoted above (personal is 10$/month), and I think they might have a tough sell when you consider privacy/IP concerns.

I think they are just trying to establish themselves in the market and how the market will play out will be seen over the coming years.