Microsoft Purview Sensitivity Labels: Sensitivity label grouping modernization coming this fall (?)

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There is a change coming to Microsoft Purview Information Protection that simplifies sensitivity label architecture. The goal is to make label management easier, more scalable, and less rigid for organizations. The new model will only include standalone labels and sublabels. Parent labels will be replaced by label groups, which act as organizational containers. These groups cannot be applied to content and have no actions or scope, but they retain color and priority for visual organization. Hopefully, this change will make it much easier to move labels around and make other changes in production: for example, converting a standalone label into a sublabel or moving sublabels between groups without breaking dependencies.  From my experience, this update solves one of the biggest challenges in large environments: rigid label hierarchies. The new dynamic model gives admins the agility they need to adapt quickly as compliance and business needs evolve. For admins, migration will be quic...

Microsoft 365 Copilot Chat - Pay As You Go

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Here is an update that really caught my eye this week. Microsoft is introducing Microsoft 365 Copilot Chat (BizChat) as a Pay-As-You-Go (PayG) service. This option will be available starting late January 2025, with full availability by mid-February 2025.

Key Highlights:
  • Flexible Access: Organizations can offer Copilot on company data without requiring individual licenses. However, a license is still needed for Copilot within applications like Outlook, Teams, and PowerPoint.
  • Controlled Costs: The PayG service is disabled by default and only activates after billing setup in the Microsoft 365 admin center, preventing unexpected expenses.
  • Easy Setup: To enable PayG billing, navigate to "Settings -> Org Settings" in the Microsoft 365 Admin Center. An Azure subscription and a dedicated Resource Group are required.
For more details on Azure subscriptions and Resource groups, refer to these articles:
  • Create your initial Azure subscriptions - Cloud Adoption Framework | Microsoft Learn
  • Manage resource groups - Azure portal - Azure Resource Manager | Microsoft Learn

The PayG model offers a low-cost entry point to Microsoft 365 Copilot Chat, ideal for testing or intermittent usage. It provides flexibility to scale usage based on actual needs, avoiding the cost of unused licenses. However, it's crucial to monitor usage to prevent unexpected costs, as PayG can be more expensive than fixed licenses if not managed properly. For consistent, high usage, a fixed license per seat may be more cost-effective.

Fixed licenses offer predictable costs and additional features, making budgeting simpler. While PayG is limited to the Chat application, it’s a great way to introduce Copilot into your organization.

It is going to be interesting to see if organizations embrace this new model, and how it potentially can drive the usage of generative AI even further within companies.