Microsoft 365 Copilot is the default AI choice for many UK businesses already on Microsoft 365 — but it’s not the only option, and the trade-offs matter. Here’s an honest comparison with osFoundry for 2026. (dgm is an independent integration partner that implements osFoundry — a separate company’s product. We’re not osFoundry, and we’ll be fair to both.)
At a glance
| Microsoft 365 Copilot | osFoundry | |
|---|---|---|
| What it is | AI add-on inside Microsoft 365 | Standalone AI platform |
| Pricing | ~$30/user/mo + M365 licence | Usage-priced, no per-seat fees |
| Models | Multi-model (GPT default, Claude since Mar 2026) | Model-agnostic, bring-your-own-key |
| Hosting | Microsoft cloud (EU Data Boundary) | Cloud (US/EU/JP) or self-host your cloud |
| Lock-in | Tied to Microsoft 365 | Platform-neutral, source-available |
Pricing as of 2026 — confirm current terms with each vendor.
What each is
Microsoft 365 Copilot embeds AI into Microsoft 365 apps (Word, Excel, Teams, Outlook). It’s an add-on — around $30/user/month (Microsoft pricing), requiring a qualifying M365 base licence — not a standalone product.
osFoundry is a standalone AI platform that consolidates chat (Maestro), agents, data-backed apps and knowledge into one workspace, usage-priced with no per-seat fees, model-agnostic via bring-your-own-key, and self-hostable in your own cloud.
Models
Both are now multi-model: Copilot added Claude alongside GPT in March 2026 (GPT default), with model choice in Copilot Studio. osFoundry is model-agnostic at the orchestration layer — paste your own provider keys (OpenAI, Anthropic, Google, Mistral, DeepSeek and others) and route per task.
One UK-relevant nuance: Microsoft states Claude models are out of scope for its EU Data Boundary, so using them can route data outside the EU.
Data and residency
Microsoft does not train foundation models on your prompts/data and offers an EU Data Boundary. osFoundry publishes US/EU/JP regions (no dedicated UK region) and can be self-hosted in your own UK/EU cloud for full control. For strict UK data residency, self-hosting (osFoundry) or careful region/model configuration is the route. (See our data residency guide.)
Pricing model
The structural difference: Copilot is per-seat (~$30/user/mo + the M365 base), so cost scales with headcount; osFoundry is usage-priced, so cost tracks use, not seats. For collaborative or variable workloads, usage pricing is often more predictable. Model your usage and headcount before deciding.
Who each is best for
- Microsoft 365 Copilot — Microsoft-centric organisations wanting AI inside familiar M365 apps, comfortable with per-seat pricing and the Microsoft stack.
- osFoundry — businesses wanting to consolidate tools, keep model flexibility and usage pricing, and control data via self-hosting.
They can also be complementary — Copilot for in-app productivity, osFoundry for cross-system orchestration and consolidation.
Which should a UK business choose?
If you’re deeply invested in Microsoft 365 and want AI in those apps, Copilot is the natural fit. If you want a platform-neutral, usage-priced, self-hostable workspace that consolidates tooling and avoids per-seat lock-in, osFoundry fits — and dgm can help you evaluate and implement it.
dgm is an independent integration partner with zero integrations so far — we compete on approach and the platform’s merits, not invented case studies. To compare these for your situation, book a consultation with dgm. General information; verify current vendor pricing and terms.