Your Copilot Pipeline Is Already Sitting in Microsoft 365 Lighthouse
TL;DR
- As of February 2024, Microsoft 365 Lighthouse identifies likely Copilot buyers across downstream tenants using usage patterns and licensing prerequisites.
- Exporting Lighthouse opportunity data to CSV lets an MSP model Copilot revenue: seat count times $30 per month, weighted by conversion probability, at the current 8 percent CSP margin.
- Pitching Copilot inside the NCE renewal window gets materially better open rates than a standalone license pitch.
- With seat minimums removed in January 2024, a customer can start with a single Copilot license, which lowers the barrier for every pitch.
- An AI readiness assessment positions the MSP as the customer's AI advisor even when no license sale happens, and Microsoft publishes a free SMB version to start from.
Most MSPs already own the data that tells them which customers will buy Microsoft 365 Copilot. It lives in Microsoft 365 Lighthouse, and as of February 2024 the platform analyzes it for you. With Microsoft removing seat minimums for Copilot in January 2024, the cost of a customer saying "fine, let's try one license" dropped to nearly nothing, which makes this a good moment to bring AI to your customer base, with an AI readiness assessment as the minimum deliverable. The pace of the broader AI market argues for moving now too. OpenAI's Sora, a model that generates up to a one-minute video from a text prompt, landed the same month (we shared thoughts on it on LinkedIn (opens in new tab)), and customers are watching the headlines. The trusted-advisor seat for their AI journey is open. Here is how to claim it, with tools you already have.
Where Lighthouse surfaces Copilot-ready customers
For anyone managing multiple downstream tenants, MSPs and direct CSPs alike, Microsoft 365 Lighthouse (opens in new tab) gives a consolidated view of operations, from security policy deployment to sales opportunity identification. It has evolved considerably, and recent updates added features that pinpoint potential Copilot customers based on algorithms that assess eligibility from usage patterns and licensing prerequisites.
Each recommendation comes with customer insights explaining the logic behind it, alongside the customer's active subscriptions, NCE renewal date, and usage across the Microsoft 365 suite.
The usage data is the targeting goldmine. Use it to craft campaigns matched to how each customer actually works: an Excel-and-Copilot email to the customers with heavy Excel adoption, a Teams-focused campaign to the meeting-heavy shops.
If Sales Advisor is not showing up in your Lighthouse, follow Microsoft's access instructions: Get access to Sales Advisor in Microsoft 365 Lighthouse (opens in new tab).
Size the revenue before you invest the time
Lighthouse exports its opportunity data to CSV. Format it as a table, filter for Copilot opportunities, and the revenue model takes minutes:
- Sum the license count column to get total eligible seats.
- Build a basic conversion model with percentages by propensity (for example, Low = 20 percent, Medium = 50 percent, High = 80 percent). Multiply by $30, the monthly Copilot price, and by total seat count to get an MRR figure across the model.
- For NRR, multiply those values by 8 percent, the current margin on Copilot licensing (unless you have negotiated a special rate).
- Multiply by 12 for ARR.
Here it is with sample data:
That number tells you whether the opportunity justifies serious time investment. One caveat from our side: license margin is only one piece of the equation. The packaging opportunities, professional services work, AI readiness assessments, and ongoing security for AI, are where the durable revenue lives.
Time the pitch to the renewal, not the product launch
When you pitch matters as much as what you pitch. With the NCE subscription renewal window opening, renewal time is the natural moment to introduce Copilot. The conversation reads as a pathway to transformation attached to a decision the customer already has to make, which reinforces the trusted-advisor role instead of undermining it.
You will likely see much higher open rates on a campaign sent at renewal time than on standalone Copilot content, where the customer assumes you are just pitching another license.
A renewal email you can adapt
The template below covers the essentials: the customer's eligibility, a focused adoption track (this one assumes a heavy Teams shop: meetings, chat, file sharing), one-minute videos for tangible content, an introduction of the AI readiness assessment, and a closing call to action you could easily swap for a form or survey.
Subject: Upcoming Microsoft Licensing Renewal & Exploring New Features with Microsoft 365 Copilot
Dear [Customer Name],
I hope this email finds you well. As we're nearing the time for your Microsoft licensing renewal, I wanted to share some information about new features available that could complement how you're currently using Microsoft products, particularly Microsoft Teams.
Introducing Microsoft 365 Copilot
With your existing licensing and upcoming renewal, you are eligible to explore Microsoft 365 Copilot. It's a tool designed to enhance productivity and efficiency, especially for those who are large adopters of Microsoft Teams. From the early access program Microsoft conducted, 1 out of every 3 users claimed that Copilot saved them over 30 minutes of time per day which equates to 10 hours of time saved per month. We believe you could derive similar time-savings.
Key Highlights:
- Start at your own pace: There are no seat minimums with Copilot so you could start with Copilot with as little as 1 license to see how you might be able to use the technology to create new competitive advantages in your business.
- Time Efficiency: The tool is designed to save time by automating repetitive tasks, providing meeting summaries/action items, and enhancing communication with all your data in Microsoft. It's about giving you more time to focus on strategic tasks.
- Enhanced Teams Usage: For organizations like yours that rely heavily on Microsoft Teams, Copilot could significantly enhance how you collaborate and manage meetings, chats, and document collaboration, thanks to its AI-driven insights. Check out some of these efficiencies in action with these quick 1-min video tutorials:
Copilot in Teams | Get Meeting Overviews (opens in new tab)
Copilot in Teams and Intelligent recap | After the meeting (opens in new tab)
Starting with an AI Readiness Assessment
Understanding the importance of data security, especially when adopting new AI technologies, we believe starting with an AI Readiness Assessment is a sensible step. This assessment aims to ensure that integrating Copilot into your operations is smooth and secure, aligning with best practices for data handling.
Let's Explore Together
We're here to support you in exploring these new capabilities at your own pace and will continue to act as your technology advisor for all AI related capabilities. If you're interested in learning more about the AI Readiness Assessment or how Copilot might fit into your existing workflows, I'd be happy to provide further information or arrange a discussion.
Your feedback and questions are always welcome.
Warm regards,
[Your Name] [Your Position] [Your Contact Information] [Your Company]
No sale? The readiness conversation still pays
Even when a license sale is not on the horizon, discussing AI readiness positions you as a forward-thinking partner. The conversation lays groundwork for the moment your customer is ready to adopt AI technologies like Copilot, and ensures you are the one standing there when it arrives.
Microsoft publishes an AI readiness assessment for SMB that makes a great first pass: https://aka.ms/CopilotM365assessment (opens in new tab)
The pattern across all of it, targeted campaigns from usage data, renewal-timed pitches, readiness assessments, is the same: the Copilot opportunity is as much about your customers' operational maturity as it is about your license revenue. Treat the data you already have as the pipeline, and the selling mostly takes care of itself.
Frequently asked questions
What if Sales Advisor is not visible in Lighthouse?
Access has to be granted first. Microsoft documents the steps at Get access to Sales Advisor in Microsoft 365 Lighthouse on Microsoft Learn.
What margin should the revenue model assume on Copilot licensing?
As of February 2024, the standard CSP margin for Copilot licensing is 8 percent, unless your distributor has negotiated a special rate.
Is licensing resale the whole Copilot opportunity?
No. License margin is one piece. The larger packaging opportunity includes professional services work, AI readiness assessments, and ongoing security for AI.
Lead the AI conversation with a security assessment
The pitch lands better when it opens with proof instead of a license quote. CloudCapsule runs a white-labeled, CIS-mapped assessment of 250+ controls per tenant in about 60 seconds, ready to put in front of a client.
Book a demo
Written by
Nick Ross
CEO · Microsoft MVP · Founder, T-Minus 365
Nick is not just a CEO, he's a respected thought leader and influencer in the MSP space. Tens of thousands of MSPs learn through his YouTube channel, T-Minus365. Nick has been honored as a three-time Microsoft MVP for his educational content; his expertise and influence are the backbone of our mission, ensuring that you are in the best hands when it comes to security.
Nick joined Pax8 in 2017, where he would ultimately oversee product management for PSA and Microsoft integrations. Following his tenure at Pax8, Nick has continued to demonstrate his leadership prowess as an executive at various MSPs, culminating in his most recent role at Sourcepass.
Nick holds a Bachelor's Degree in Business Management from Florida State University, as well as a Minor Degree in Entrepreneurship. In his free time, Nick is an avid hiker, reader, and fitness-junkie.
