Blog
10/03/2026
What is Microsoft 365 E7?
While most organisations struggle to justify the value of M365 E5 - and are often over-licensed on E3 too - there is now a new bundle on the scene. Microsoft 365 E7 will be available from May 1st, 2026.
What is in Microsoft 365 E7?
Known as the “Frontier Suite” (by Microsoft at least), M365 E7 includes:
- M365 E5
- Entra Suite
- Microsoft 365 Copilot
- Agent 365
1 https://partner.microsoft.com/en-US/blog/article/agent-365-announcement
These are all available as individual SKUs now, as Agent 365 has officially been launched too.
How much will Microsoft 365 E7 cost?
The new offering will have a list price of $99 per user per month. That price is $18 lower than the individual components and also won’t be affected by the price increases scheduled for July 1st, 2026.
That per user price isn’t the whole story though – using AI Agents to their full capabilities will require consumption billing for Agent actions:
“While Microsoft 365 E7 equips people to work differently, Microsoft Agent Factory enables customers to build, deploy, and scale custom agents with comprehensive tooling. The Microsoft Agent Factory Pre-purchase Plan (P3) adds licensing flexibility across Microsoft Copilot Studio, Microsoft Foundry, Microsoft Fabric, and GitHub.”
This shows that using agents will add ongoing, consumption costs across a range of Microsoft products in a variety of areas. This means not only will the per user licensing cost increase (if you’re going from E5 to E7) but also additional costs being driven by AI agents.
Is Microsoft 365 E7 good value?
If you are genuinely using the vast majority of M365 E5 features AND you are using M365 Copilot AND you are actively moving towards deploying AI Agents across your organisation, then M365 E7 may well be just what you’ve been looking for.
However, if you’re like the majority of customer organisations and are over-licensed on E5, on the fence on Copilot and/or not seeing the ROI, and still – realistically – at least a couple of years away from widespread AI agents – be careful. In that scenario, M365 E7 represents another way to spend more money without seeing additional value.
Microsoft partner focus
Microsoft partners are being incentivised to push E7 to their customer base, for example:
“Starting on April 1, 2026, to accelerate Microsoft 365 E5 to Microsoft 365 E7 upsell and Agent 365 adoption, Copilot + Power Accelerate will include Agent 365 across Immersion Briefings, Envisioning and proof of concept (PoC) engagements, and Deployment Accelerators. Microsoft 365 E7 and Agent 365 will also be included as eligible workloads for core tier one strategic product accelerators and growth levers in Cloud Solution Provider (CSP) incentives.”
This means there will be promotions/offers/discounts etc. being brought to customers with the aim of getting you to move to M365 E7. As always, do your due diligence to make sure it is what you need and that it will deliver value.
What are the next steps?
License optimisation matters more than ever. Before you consider moving to Microsoft 365 E7, first do a full and thorough review of your current Microsoft estate: are you using the Microsoft 365 E5 and E3 licenses you have now, do you need all the features you’re paying for, are you on the best agreement etc.?
A Synyega Microsoft Health check is the perfect place to start in improving your Microsoft ROI. For most, E7 is a further step in the wrong direction when it comes to appropriate licensing – increasing spend and reducing value.
