Microsoft has officially announced Microsoft 365 E7, a new enterprise suite that combines AI, security, and identity management. The suite, dubbed the Microsoft 365 E7 Frontier Suite, is expected to be generally available on May 1, 2026, with a target price of $99 per user per month.
With this new bundle, Microsoft brings together multiple existing solutions into a single licensing model, including Microsoft 365 E5, Microsoft 365 Copilot, and the new Agent 365 management environment. The introduction aligns with Microsoft's strategy to make AI an increasingly integral part of the modern workplace.
For organizations, this means that AI functionality is becoming increasingly integrated with existing Microsoft 365 licenses and security platforms. At the same time, the new suite raises questions regarding licensing structure, governance, and the practical deployment of AI agents.
What are Microsoft 365 E7 licenses?
Microsoft 365 E7 is a new enterprise bundle that combines various Microsoft services. The basis of the suite consists of Microsoft 365 E5, supplemented with Microsoft 365 Copilot, Agent 365, and Microsoft Enterprise Suite.
Microsoft 365 E5 remains the foundation for productivity, security, and compliance. Features from Microsoft Defender, Intune, and Purview, among others, remain part of the suite. Copilot adds AI functionality within applications such as Word, Excel, PowerPoint, Outlook, and Teams.
New to the bundle is Agent 365, a platform designed to give organizations insight into and control over the use of AI agents. Additionally, Microsoft Enterprise Suite plays a role in identity and access management, particularly relevant when AI agents gain access to corporate data and systems.
According to Microsoft, the suite uses a shared intelligence layer called Work IQ, which uses signals from Microsoft 365 applications and documents to provide AI systems with context about how work takes place within an organization.
Cost of Microsoft 365 E7 licenses
Microsoft has announced a target price of $99 per user per month. With this, Microsoft positions the suite as a bundle for organizations that want to combine multiple AI and security services.
The bundle can be more cost-effective than purchasing components separately, but the final costs depend on existing contracts, volume discounts, and the Microsoft licenses an organization already uses.
Additionally, Microsoft 365 E7 is being made available with and without Teams, similar to other enterprise plans. Organizations already using E5 licenses or Copilot must consider whether switching to E7 actually yields benefits.
Agent 365 and AI Agent Management
Agent 365 is intended as a central environment for managing and monitoring AI agents. The platform provides insight into agent usage, which data they access, and which actions they perform. As a result, AI agents are subject to the same governance and security rules as human users and applications.
Entra's role in AI Governance
Within Microsoft 365 E7, Microsoft Entra Suite plays a role in identity and access management. Entra is used to manage access to applications, data, and systems.
Microsoft has not yet fully specified exactly which parts of Entra are included in E7. Because Entra consists of multiple components, including identity governance and secure access functionality, this may be of importance to organizations that want to deploy AI agents at a larger scale.
Copilot and AI integration in Microsoft 365
Alongside Agent 365, Microsoft 365 Copilot continues to play a central role. Copilot provides generative AI within familiar Microsoft 365 applications and supports tasks such as writing documents, analyzing data, and summarizing information.
New enhancements for Copilot include further integration with AI agents and support for multiple AI models, enabling employees to use AI as an assistant and collaborate with specialized agents.
Microsoft 365 E7 and existing licenses
Organizations must assess how E7 relates to existing licenses:
- Companies already using Microsoft 365 E5 have a great deal of security and compliance functionality at their disposal. For them, the question is whether the bundling with Copilot, Agent 365, and Entra Suite offers sufficient additional value.
- Organizations with E3 licenses may experience greater changes, as E7 combines a more comprehensive AI and security platform.
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Microsoft 365 E7 brings AI, security, and identity management together in one enterprise suite. Components such as E5, Copilot, Agent 365 and Entra Suite have been combined to support organizations in the use of AI within work processes.
However, organizations must not only look at new functionality, but also at the impact on existing licenses, governance, and cost structures.
BeSharp Experts helps organizations analyze their Microsoft licenses, determine the right licensing strategy, and negotiate optimal contract terms.
Source: Introducing the First Frontier Suite built on Intelligence + Trust – The Official Microsoft Blog