Microsoft 365 E7

Who Is Microsoft 365 E7 For?

E7 is for organisations that are ready to go all-in on AI — not just experimenting with Copilot, but deploying AI agents at scale with proper governance.

E7 is right for you if:

• ✅ You want Copilot for all enterprise users (not as an add-on)
• ✅ You’re deploying AI agents and need governance at scale
• ✅ You want the full Entra Suite — Zero Trust Network Access, Internet Access, Verified ID
• ✅ You’re already on E5 + Copilot and want Agent 365 for just $9 more
• ✅ You want a single SKU that covers everything — no add-on management
• ✅ You’re in a regulated industry and need centralised AI governance and audit trails
• ✅ You want to replace your VPN with Entra Private Access (ZTNA)

You probably don’t need E7 if:

• ❌ You’re not ready for Copilot yet — stick with E3 or E5
• ❌ You don’t plan to use AI agents
• ❌ Budget is constrained — E3 + targeted add-ons is more cost-effective
• ❌ You only need Copilot for a small group (add the $30 Copilot add-on to E3/E5 instead)

What’s Inside Microsoft 365 E7?

E7 is four products in one SKU. Everything in E5 carries over — then E7 adds Copilot, Agent 365, and the full Entra Suite on top.

flowchart LR
    E7["Microsoft 365 E7
$99/user/mo"]
    E5["Everything in E5
Full Security + Compliance
+ Teams Phone + Power BI"]
    COP["Microsoft 365 Copilot
AI in every Office app
+ Copilot Studio"]
    AGT["Agent 365
AI agent governance
at enterprise scale"]
    ENT["Full Entra Suite
ZTNA + Internet Access
+ Verified ID + Governance"]
    E7 --> E5
    E7 --> COP
    E7 --> AGT
    E7 --> ENT

What You Inherit from E5

Because E7 is a superset of E5, you get all of these included:

💡 Already on E5? You keep everything. E7 only adds — it never removes features. See the E5 guide for the full security deep dive.

🤖 Microsoft 365 Copilot (Included)

Copilot is the AI assistant embedded in every Office app you use. In E7, it’s included — no $30/user/month add-on required.

E7 also includes Copilot Studio agent-building capabilities — create custom agents and workflows within the M365 Copilot entitlement. Note: the standalone Copilot Studio SKU ($200/tenant/month) provides additional message capacity and features beyond what’s included in the M365 Copilot licence. See the Copilot guide for deployment tips.

🤖 Agent 365 (New in E7)

Agent 365 is the management plane for the agentic AI era — treating AI agents with the same governance as human users.

💡 Why this matters: As organisations deploy more AI agents (via Copilot Studio, Power Automate, custom apps), governing them becomes critical. Without Agent 365, you have “shadow AI” — agents nobody tracks, with unknown data access.

Agent 365 is also available standalone at $15/user/month for organisations not ready for E7.

🔐 Full Entra Suite (Beyond E5)

E5 includes Entra ID P2. E7 goes further with the full Entra Suite — Microsoft’s complete identity, access, and network security platform.

💡 The VPN replacement story: Entra Private Access is a genuine VPN alternative. Users connect to internal apps through an identity-aware, Zero Trust tunnel — no full network access, no split tunnelling headaches. If you’re still running a legacy VPN, this alone might justify E7.

Microsoft 365 E7 Pricing — The Bundle Math

If you buy each component separately (at USD list prices):

For a 1,000-user deployment, that’s $18,000/month saved — or $216,000 annually.

⚠️ Note: These are USD list prices. Actual pricing depends on your licensing channel (EA, CSP, Web Direct) and volume. E5 customers may get step-up pricing for the Entra Suite that differs from standalone list prices. Always confirm with your Microsoft rep or partner.

💡 The real comparison for most E5 customers: If you’re already paying $90/user (E5 + Copilot add-on), E7 at $99 adds Agent 365 ($15 standalone value) and the full Entra Suite for just $9 more. That’s the strongest upgrade case.

Microsoft 365 E7 vs E5 vs E3 — Complete Comparison

flowchart LR
    E3["E3
$39/mo
Productivity
+ Basic Security"]
    E5["E5
$60/mo
E3 + Advanced
Security & Compliance"]
    E7["E7
$99/mo
E5 + Copilot
+ Agent 365 + Entra Suite"]
    E3 -->|"+$21"| E5
    E5 -->|"+$39"| E7

💡 Decision framework: E3 for productivity. E5 for security. E7 for AI at scale. Most organisations mix all three based on role.

Migration Path from E5 to E7

Already on E5? Here’s the upgrade path:

1. Audit current add-ons — if you’re paying for Copilot ($30) and/or Entra Suite ($12) add-ons, calculate your current per-user cost. If it’s $90+, E7 at $99 is cheaper.

2. Pilot with 50-100 users — assign E7 licences to your AI champions and security team first. Validate Copilot adoption, Agent 365 setup, and Entra Private Access.

3. Switch licence in admin centre — it’s a simple licence swap. No data migration needed. Users keep all E5 features and gain E7 extras immediately.

4. Configure Agent 365 — set up the agent inventory, define security policies, and enable usage tracking. This is net-new and requires planning.

5. Deploy Entra Private Access — if replacing VPN, plan a phased rollout. Start with a pilot group accessing one internal app, then expand.

6. Review licensing channels — check whether your EA, CSP, or Web Direct contract supports the upgrade. Teams opt-out pricing may be available.

⚠️ Important: E7 is available in a without-Teams variant at a reduced price, primarily for the EEA and Switzerland where regulatory requirements restrict bundled communications. In most other regions, E7 includes Teams by default.

What E7 Does NOT Include

Even the top-tier plan has boundaries. Know these before you commit:

💡 The PSTN catch: E7 includes Teams Phone System (cloud PBX), but not the actual phone number or call minutes. You still need a Calling Plan, Operator Connect, or Direct Routing for making and receiving external calls.

Licensing Channels & Availability

Frequently Asked Questions

1. What is Microsoft 365 E7?

E7 (also called Frontier Suite) is the top-tier enterprise plan at $99/user/month. It includes everything in E5 plus Microsoft 365 Copilot, Agent 365 (AI agent governance), and the full Microsoft Entra Suite — all in a single SKU.

2. When is M365 E7 available?

M365 E7 is Generally Available (GA) from May 1, 2026, worldwide via Enterprise Agreement (EA), Cloud Solution Provider (CSP), and Web Direct.

3. Is M365 E7 cheaper than buying everything separately?

Yes. At USD list prices: E5 ($60) + Copilot ($30) + Entra Suite ($12) + Agent 365 ($15) = $117/user. E7 at $99 saves you $18/user/month — about 15% off the à la carte price. Actual pricing depends on your licensing channel and volume.

4. What is Agent 365?

Agent 365 is a governance platform for managing AI agents across your organisation. It provides an agent inventory, security policies, usage tracking, and lifecycle management — treating AI agents with the same compliance as human users.

5. Does E7 include Teams Phone?

Yes. E7 inherits everything from E5, which includes Teams Phone System (cloud PBX). You still need a Calling Plan or Direct Routing for PSTN connectivity.

6. Can I mix E5 and E7 licences in the same tenant?

Yes. Give E7 to power users, AI champions, and security teams who need Copilot and Agent 365. Keep E5 for users who don’t need AI capabilities, and E3 for general staff.

7. Is E7 just E5 + Copilot repackaged?

No. E7 adds the full Entra Suite (ZTNA, Internet Access, Verified ID) and Agent 365 — neither of which is available in E5 even with the Copilot add-on. It’s a genuine upgrade with unique components.

8. What if I only want Agent 365, not the full E7?

Agent 365 is available standalone at $15/user/month. You can add it to any E3 or E5 licence. The full Entra Suite is also available as a separate add-on.