Choosing an AI interface platform is one of the most fundamental strategic decisions a company makes today. It defines the boundaries of innovation, costs, and data sovereignty for years to come. In this demanding market, three fundamentally different approaches compete: the agile open-source favorite Open WebUI, the flexible open-source hub LibreChat, and Copilot M365, deeply anchored in the Microsoft ecosystem.
This analysis goes beyond a simple feature comparison. We evaluate the architectures, ecosystem capabilities, and Total Cost of Ownership (TCO) to create a well-founded, strategic decision basis for your company.
Architectures in Direct Comparison
| Criterion | Open WebUI | LibreChat | Microsoft Copilot (for M365) |
|---|---|---|---|
| Basic Architecture | Lightweight frontend for local LLMs | Flexible multi-provider platform | AI service integrated into M365 |
| Cost Model | Open Source (only infrastructure costs and tokens) | Open Source (only infrastructure costs and tokens) | High license costs (approx. €30 / user / month) |
| AI Model Connection | Primarily Ollama; limited API support | Comprehensive (Azure OpenAI, Gemini, Anthropic Claude, Perplexity, etc.) | Proprietary Microsoft ecosystem |
| Agent Framework | No | Yes, via n8n/external automation tools | Yes, Copilot Studio (paid Power Platform license) |
| User-defined Agents | No | Yes, via text prompt as “Preset” | Limited through predefined “Skills” |
| Data Integration | No | Yes, via REST APIs & Webhooks | Yes, via Microsoft Graph & Connectors |
| Data Sovereignty | Maximum (On-Premise / own cloud) | Maximum (On-Premise / own cloud) | Limited (processing in Microsoft Cloud) |
| Authentication | Basic Login | Enterprise-Grade (SSO via Azure AD, Keycloak, etc.) | Enterprise-Grade (M365 Identity) |
Strategic Analysis: Flexibility vs. “Walled Garden”
The decisive differences lie not on the surface but in the underlying philosophy of the platforms.
1. Agent Capability: The Ecosystem Is Decisive
The future of AI in business lies in autonomous agents that execute complex, multi-step tasks. Microsoft offers Copilot Studio, a low-code environment for this purpose. While powerful, it creates a double lock-in: It binds you not only to the Microsoft model but also to the Power Platform ecosystem with its own complex licensing models.
LibreChat pursues an open but no less powerful approach. Through its native REST APIs and webhooks, it can be seamlessly connected to leading open-source automation platforms like n8n. This combination enables the construction of AI agents that are in no way inferior to Copilot Studio in functionality. The crucial difference: You retain full control, avoid license costs, and can integrate any technology you choose.
2. User-Defined Agents: Democratization of AI
LibreChat allows any user to configure simple but effective agents by creating “Presets.” A preset defines the AI model to be used and a specific system instruction. This way, an employee without technical knowledge can create an “Agent for summarizing meeting minutes” or an “Agent for creating social media texts” via simple text prompt and share it with the team.
3. Total Cost of Ownership (TCO): The License Cost Trap
With Copilot for M365, the license costs of approximately €360 per user per year are just the tip of the iceberg. Add to that the costs for Copilot Studio to build full-fledged agents. With an open-source solution like LibreChat, these license costs are completely eliminated. The only costs incurred are for the underlying cloud infrastructure, which often amounts to just a fraction.
Recommendation: The Right Platform for the Right Purpose
- Open WebUI: The first choice for developers and researchers. Ideal for quick, local experiments and operating individual models with a focus on simplicity. It’s an excellent tool but not a strategic enterprise platform.
- Microsoft Copilot: The path of least resistance for companies deeply rooted in the Microsoft ecosystem and willing to pay a significant premium for seamless integration while giving up strategic flexibility.
- LibreChat: The strategically superior choice for companies that see AI as a sovereign, flexible, and central building block of their IT architecture. It offers freedom in choosing the AI model, an open framework for building powerful agents, and an unbeatable cost structure.
From Platform to AI Solution: CompanyGPT
The decision for the open ecosystem of LibreChat is the strategically smartest. However, implementing and securely operating such a solution requires enterprise-level expertise.
This is exactly where innFactory CompanyGPT comes in. We offer not just hosting but a fully integrated and managed AI platform based on LibreChat.
Our Service Promise:
- Sovereign Operation: We implement and operate the entire platform on your own Azure infrastructure. Your data never leaves your control.
- Full Integration: We connect the platform via SSO to your Azure AD and support you in connecting your enterprise data and building agent workflows with n8n.
- Worry-Free Service: Through our DevOps expertise, we guarantee the highest security, scalability, and permanently up-to-date software.
- Cost Efficiency: Avoid expensive license models and make optimal use of your existing resources.
Make a decision for technological sovereignty and economic prudence. Contact us for strategic consulting on how you can achieve your goals faster, more securely, and more cost-effectively with an open AI platform.
