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So the service costs MSFT an average of $30/user/month. So if they want to make a business with decent margins out of this, they're going to need to charge $60/user/month or more.

That's not too much if it's adding a lot of value but it's also definitely a lot of money. It would be the most expensive SaaS my team pays for (and we have a lot of subscriptions).

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Also, that is assuming that the group willing to pay $60/month includes many who use the service less than average. It's possible that only heavy users would stick around after a 6x price increase.

As users' codebases grown over time, the average usage of users will probably continue to grow. By a static price increase alone won't be a great model. They need to make their models and infrastructure more efficient first.

Or create a pricing model where the monthly sub covers a certain amount of tokens and then beyond that is pay-as-you-go. Sucks for users, but a scalable model.

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