MSFT Copilot 采用进展应带来治理顺风

Equity ResearchJuly15,20251.82.002346Jun 25, Sep'24 osure information, and information regarding the status of non-US analysts on pages 7 -14 of this report. Are you planning to adopt M365 Copilot in thenear future?Chart 2 - Security is top priority for MSFTdecision makers adopting a copilotWhat is your biggest concern when adopting acopilot? (1 = biggest concern)Time toJun °25 SurSep 24 SurChart 3-MSFT favorite to govern M365CopilotWho are you leveraging to secure thegovernance of M365 Copilot?92% 92%Palo Altes Proprietary MSFT Survey (Jun 25, Sep '24,m M365 Copilot Customers OnlyJoseph Gallo*IEquity Analyst(212) 336-7402 ljgallo@jefferies.comBrent Thill * I Equity Analyst(415) 229-1559 I bthill@jefferies.comAnjali Papadopoulos * [Equity Associate+1 (212) 778-8590 |apapadopoulos@jefferies.com JefferiesJef Survey Results -Our survey data shows that while 82% of respondents have currently adopted M365 copilot, an average of 33% seats (vs 67% adoption at anaverage of 16% of seats in 3Q24 survey) has been deployed indicating a stronger rollout. As M365 Copilot adoption grows over the next 12 and 24months, we expect this to drive the need for governance solutions (of which it appears MsFT is being most utilized). See Charts 4 & 6Our data shows that M365 Copilot adoption is at 82% today, with 90% planning to adopt M365 Copilot within the next 24 months rolling it outto an average of 62% of total seats (Chart 5). This is likely a bullish view but was interesting that most large enterprises (58% of our total surveyrespondents were >10,000 MSFT seats) are leaning into copilot.Over the next 24 months, the M365 Copilot expected average rollout has shown an increase from our Sep'24 survey to our Jun'25 survey.from 58% to 62%. (Chart 5).MSFT Security Copilot adoption is only at 17% (down vs 27% in 3Q24 survey) in this peer group of ClOs with anambitious expectation of60% in the next 24 months (Chart 6). These results are indicative that customers are currently cautious in adopting cyber agents to enhanceand augment their SOC teams. While we have long believed in the value of these cyber agents (MSFT Security copilot, PANW's copilots, CRWD'sCharlotte Al, s Purple etc), we have questioned how many agents a security team would be willing to use initially (assume only a handful givenit requires attention to implement). These results are obviously a tailwind to MsFT's cyber business (although the downtick was intriguing andpotentially a testament to customers wanting to use pure-play solutions). We expect to see CRWD & PANW benefit as well (they are large platformswhere utilizing the security Al assistant to orchestrate several products is logical)Note that the composition of our Cios surveyed varies each quarter, which makes it challenging to have a like-for-like comparisonChart 4 - Adopters of Copilot have rolled out to an average of 33% of total MSFTOffice Seats (vs 16% in 3Q24 survey)What % of your M365 install base currently has M365 Copilot?16% 15%4%0%0%0%1-5%6-10%Jun '25 surveyChart 6 - M365 Copilot Current Adoption at 82%, 90% planning to adopt in next 24 monthsWhich Microsoft copilots/products have you adopted?Please see important disclosure information on pages 7 - 14 of this report. 36%12%4% Chart 5 - Copilot expected to roll out to an average of 62% of total MSFT officeseats in the next 24 monthsWhat % of your install base do you expect to have Copilot in the next 12 and 24months?%SE923%16%15%8%1%26-45%46-75%76-100%=26Sept'24 survey JefferiesAre you planning to adopt any Microsoft copilots/products in the near future?%06%8882%56%Microsoft 365CopilotGitHub CopilotHave adopted / current customerSource: Jefferies Prory MSFT SuMSFT decision makers view security as paramount (Chart 2) to copilot adoption as cyber remains mission-critical, followed by governance.Is M365 Copilot Worth it? Security benefit from Gen Al will likely trail Copilot adoption in the near future. However, we believe that the ROI for M365copilot will be a key determinant of future seat growth as it justifies the speed of rolling out Copilot to enterprise users. Vendors like VRNS price theirdata governance products to seats, given they provide the security solutions for MSFT, which is why we continue to monitor metrics like ROl to trackseat growth. Our results indicated that 35% of respondents believe it was too early to tell on ROl rolling out M365 Copilot, while 61% believed it wasas expected or better. We also surveyed respondents on whether they secure M365 Copilot before they rolled it out to their installed base. 54% ofrespondents (up vs 40% in 3Q24 survey) were said to have fully secured M365 Copilot before deployment. This may be lower than some would expect,but we remind people that the world does not operate in a perfect manner. Often the business makes decisions which then lead the Ciso to cleaning upIT messes after the fact historically. Regardless, this data speaks to the growing importance & need that security plays in ClO's p