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Microsoft 365 E7: for whom and how does it differ from E3 and E5?

Microsoft brings on 1 May 2026 issued a new Enterprise licence: Microsoft 365 E7, also known as the ‘Frontier Suite’. It is the first major expansion over E5 since 2015. It is not just another expansion, but a fundamentally new platform that responds to the agentic AI era.

Key insights

What is Microsoft 365 E7?

Microsoft 365 E7 bundles a number of existing components with one completely new element. In short, it is: Microsoft 365 E5 + Copilot + AI agent governance + full Entra suite.

The main additions are:

1. Copilot included as standard

No more add-on: Copilot is just in the suite, including Wave 3 capabilities such as building your own AI agents in Word, Excel, PowerPoint, Teams and Outlook. Agents that, in addition, can now perform ‘multi-step’ tasks thanks to Copilot Cowork.

2. New: Agent 365

Agent 365 is the biggest new feature of M365 E7: a central layer to manage all AI agents. With features such as:

  • Inventory of all agents
  • Security and governance policies
  • Lifecycle management
  • Purview integration

In short, the same control for AI agents as for human users.

3. Full Entra Suite included

Whereas Microsoft E5 mainly offers Entra ID P2, E7 does a shelf on top with:

  • Entra Private Access (modern alternative to VPN)
  • Entra Internet Access (identity-centric security for internet and SaaS apps)

In short, Microsoft brings identity, network access and AI governance together in one package with Microsoft 365 E7.

Microsoft 365 E3 vs E5 vs E7

What exactly is the difference between Microsoft 365 E3, E5 and E7? The table below shows at a glance which features are included per licence:

Microsoft 365 E3

Microsoft 365 E5

Microsoft 365 E7

Office apps and collaboration
Windows Enterprise
Security Basic Advanced Highly advanced
Compliance Basic Advanced Advanced + AI governance
Power BI Pro
Telephony & Audio Conferencing
Microsoft 365 Copilot included
Agent 365 included
Recommended price (per user) $ 36/month $ 57/month $ 99/month

What really changes compared to E5?

Microsoft 365 E7 is no small upgrade from E5. The biggest change is that in E7, Microsoft focuses not only on productivity and security for employees, but also on the managing AI and agents at scale. Where E5 already offers strong security, compliance, analytics and telephony capabilities, M365 E7 adds Microsoft 365 Copilot, Agent 365 and the full Entra Suite.

Copilot in E7: from assistant to coworker

In Microsoft 365 E7, Microsoft Copilot is included as standard. This includes not only help in Word, Excel or Outlook, but also AI that works with your organisation's context via work grounding and Work IQ. With Copilot Cowork - A collaboration between Microsoft and Anthropic - Moreover, Copilot evolves from a classic assistant to an AI that can also perform multi-step tasks and keep you informed along the way.

When is E7 interesting?

Microsoft 365 E7 is especially interesting once AI is no longer an experiment, but becomes a structural part of your workplace.

Specifically, E7 comes into the picture as your organisation:

  • Copilot wants to roll out broadly
  • Want to deploy and manage AI agents within the organisation
  • Needs more control over identity, access and governance
  • Wanting to go beyond E5 with Entra Suite, such as Private Access and Internet Access

Price and availability

Microsoft 365 E7 becomes generally available from 1 May 2026 and has a suggested retail price of $99 per user per month. Which is cheaper than taking E5 + Copilot + Agent 365 + Entra Suite separately. Moreover, Microsoft also provides introductory discounts:

  • 10% discount for annual licences from 10 users
  • 15% discount for annual licences from 100 users

 

Want more info on Microsoft 365 E7?

Do not hesitate to contact us for more info or a no-obligation quote:

VAT no.

Author

Article written by

Ines Van Hoof
Licensing Architect

Ines can help you with your licensing questions, from choosing the right licensing programme, to optimisations and correct follow-up.

“Microsoft brings identity, network access and AI governance together in one package with Microsoft 365 E7.”

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