Microsoft 365 E7 is now the most expensive plan in Microsoft’s lineup, and it is showing up in renewal conversations whether you asked for it or not. Microsoft’s salesforce is positioning the $99 Frontier Suite as the simplest way to buy Microsoft 365 Copilot, AI agent management, and advanced identity security in one SKU.
The question for your 2027 budget is not whether E7 is good. It is whether every user needs it, or whether E5 + Copilot, or a mix of both, delivers the same outcome for less. This guide breaks down what each option includes, where the price math tips, and how to build a licensing posture you can defend to finance.
All prices below are United States list prices per user per month. Your actual cost depends on how you buy, which we cover further down.
What Microsoft 365 E7 Actually Includes
Microsoft announced E7, branded the Frontier Suite, in March 2026, and it became generally available on May 1. It bundles four products that were previously sold separately:
Microsoft 365 E5: the full productivity, security, and compliance stack, including Defender, Intune, and Purview.
Microsoft 365 Copilot: the AI assistant in Word, Excel, PowerPoint, Outlook, and Teams, grounded in your Microsoft 365 tenant data through Microsoft Graph.
Microsoft Entra Suite: advanced identity management, including Entra Private Access, Internet Access, ID Governance, and ID Protection.
Agent 365: a control plane for AI agents that tracks, secures, and governs agents across the organization, including those built in Copilot Studio.
E7 is available with and without Teams, which matters if you already license Teams separately.
Why Agent 365 is the real reason E7 exists
E5, Copilot, and the Entra Suite were all available before E7. The new piece is Agent 365. As AI agent workflows multiply, IT needs centralized governance: an inventory of every agent, access policies that limit what each one can touch, and logging and audit trails for compliance audits. Agent 365 also adds data security risk monitoring for what agents do with sensitive content. If your AI adoption roadmap includes AI agent deployment at scale, this is the component to evaluate most carefully.
The E5 + Copilot Path: Buying à la Carte
E5 + Copilot means keeping Microsoft 365 E5 as your base and adding Microsoft 365 Copilot as an add-on SKU only for the users who need it. Copilot is not tied to E5. The same add-on works on Microsoft 365 E3, Office 365 E1/E3/E5, and Microsoft 365 Business Standard and Business Premium.
Users get the same Copilot experience either way: drafting in Word, analysis in Excel, decks in PowerPoint, meeting recaps in Teams, and email help in Outlook, including the new Outlook for Windows that Microsoft built under the codename Monarch. What E5 + Copilot does not include is the Entra Suite and Agent 365. You can still buy either one separately later, as its own service plan, if you need it.
The Price Math: It Comes Down to $9
Here is how the list prices stack up after Microsoft’s July 2026 price changes.
| Component | Price per user per month |
| Microsoft 365 E5 | $60 |
| Microsoft 365 Copilot | $30 |
| Microsoft Entra Suite | $12 |
| Agent 365 | $15 |
| Bought separately | $117 |
| Microsoft 365 E7 | $99 |
On a phone, scroll the table sideways to see both columns.
The bundle discount looks like $18, but that only applies if you would have bought all four. The more useful comparison is this:
E5 + Copilot: $90 per user
E7: $99 per user
E7 costs $9 more than E5 + Copilot, and for that $9 you get the Entra Suite and Agent 365, which together list at $27. So the decision is simple to state: if you would buy either the Entra Suite or Agent 365 for a user, E7 is cheaper. If you need neither, E5 + Copilot saves $108 per user per year.
Prices are United States list prices and may differ by region and agreement. Confirm current pricing with your licensing partner before you budget.
When E7 Makes Sense, and When E5 + Copilot Wins
E7 is the better fit when
You are already buying identity add-ons. If you license Entra Private Access, Internet Access, or ID Governance today, E7 likely costs less than what you pay now.
AI agents are on the roadmap. Organizations planning AI agent deployment beyond a pilot need centralized governance, and Agent 365 provides it.
You handle regulated data. Healthcare, financial services, and public sector teams with significant compliance overhead benefit from the audit trails and data security risk monitoring that come with Agent 365 and the Entra Suite.
You want Copilot for everyone. Rationing Copilot to a few users creates artificial barriers to adoption. For large organizations committed to broad rollout, E7 simplifies licensing.
E5 + Copilot is the better fit when
Copilot is still in a pilot. Paying for agent governance before you deploy agents is money spent early.
Your identity needs are covered. If E5’s Entra ID P2 meets your access policies, the Entra Suite adds little.
Only some users need AI. Frontline, part-time, and light users rarely justify $99 a month.
SMBs Under 300 Users: Look at Copilot Business First
For organizations with fewer than 300 employees, neither E7 nor E5 + Copilot is usually the right starting point. Since December 2025, Microsoft has offered Copilot Business at $21 per user per month for SMBs under 300 users on a Business plan. It delivers the same Copilot experience in the Microsoft 365 apps for $9 less than the enterprise add-on.
Paired with Business Premium, which already includes Intune, Defender for Business, and Entra ID P1, Copilot Business covers most of what a company in the 25-to-200-seat range needs. Teams on Microsoft 365 Business Standard can add it too.
E7 starts to make sense for a smaller company only when it handles regulated data or is deploying AI agents that need formal governance.
The Answer for Most Organizations: Mix Licenses by User
You do not have to choose one plan for everyone. Selective license assignments let you match each group of users to the license they actually use. A typical mix looks like this:
| User group | Suggested license | Why |
| Executives, analysts, agent builders | Microsoft 365 E7 | Heavy Copilot use, sensitive data, AI agent workflows |
| Knowledge workers using AI daily | E5 + Copilot | Full Copilot without agent governance costs |
| Knowledge workers not yet using AI | Microsoft 365 E5 or E3 | Add Copilot later when usage is proven |
| Frontline and light users | Microsoft 365 E3 or a frontline plan | Copilot Chat is included at no extra cost |
On a phone, scroll the table sideways to see every column.
To build this mix, pull Copilot usage reports from the Microsoft 365 admin center and identify who is actually using AI features, then assign licenses by role rather than by default.
Which of your users actually need E7?
We’ll analyze your Copilot usage, map each user group to the right license, and model the annual cost of each scenario before you renew.
How You Buy Matters as Much as What You Buy
The same licenses can cost very different amounts depending on the channel and term.
Enterprise Agreement vs. CSP: large organizations often buy through an Enterprise Agreement, while most mid-sized companies buy through the Cloud Solution Provider (CSP) program. CSP partners can offer discounts and more flexible terms.
Annual contracts vs. monthly terms: under Microsoft’s current commerce model, monthly-term subscriptions typically cost more than annual contracts. Annual commitments give you pricing predictability for the year, but you cannot reduce seats mid-term.
Renewal leverage: your renewal is when you have the most negotiating power. Microsoft wants to move customers to E7, so a well-prepared licensing review before renewal can secure better terms on whichever plan you choose.
A managed IT partner with licensing expertise can model each scenario and negotiate on your behalf.
Five Steps to Plan Your 2027 Licensing Budget
Inventory what you pay for today. List every Microsoft subscription, add-on, and third-party security or identity tool. Overlap is common, especially after the July 2026 changes to E3 and E5.
Measure actual Copilot usage. Use admin center reports to see who uses Copilot, how often, and in which apps.
Map users to groups. Sort users by role and AI usage into the license tiers shown above.
Model three scenarios. Price an all-E7 option, an E5 + Copilot option, and a mixed option, then compare the annual totals.
Time it to your renewal. Start at least 90 days before renewal so you have time to negotiate and adjust seat counts.
Frequently Asked Questions
How much does Microsoft 365 E7 cost?
Microsoft 365 E7 lists at $99 per user per month in the United States. A version without Teams is also available.
What is the difference between E7 and E5 + Copilot?
E7 includes everything in E5 + Copilot plus the Microsoft Entra Suite and Agent 365. E5 + Copilot costs $90 per user per month, $9 less than E7.
Can I mix E7 and E5 licenses in the same tenant?
Yes. Most organizations get the best value by assigning E7 only to users who need agent governance or advanced identity features, and E5 + Copilot or E5 to everyone else.
Is E7 worth it for small businesses?
Usually not. Businesses with fewer than 300 users can get Copilot Business for $21 per user per month on top of a Business plan, which is far cheaper.
Get a Per-User Licensing Mix Analysis
Windows Management Experts’ Licensing Optimization team helps IT and finance leaders build a 2027 licensing posture that fits how people actually work. We will:
Review your current subscriptions and find overlap you can cut.
Analyze Copilot usage and map each user group to E7, E5 + Copilot, or a lower tier.
Model the annual cost of each scenario before your renewal.
Support CSP purchasing and renewal negotiation.
Request a licensing review and go into your 2027 renewal knowing exactly which users need E7.
Go into your 2027 renewal knowing exactly which users need E7.
Our Licensing Optimization team builds a per-user licensing mix that fits how your people actually work.
