On May 1, 2026, Microsoft introduced Microsoft 365 E7 – the biggest change to its enterprise licensing in ten years. Under the name “Frontier Suite”, E7 replaces E5 as the top tier and bundles four previously separate building blocks into a single license. What is included – and who is the switch really worthwhile for?
What is included in Microsoft 365 E7?
E7 combines four components that previously had to be licensed individually:
- Microsoft 365 E5 – the previous enterprise top tier with the full security, compliance, and productivity scope
- Microsoft 365 Copilot – the AI assistant in Word, Excel, Outlook, Teams, and more
- Agent 365 – a new central management platform for AI agents
- Microsoft Entra Suite – advanced identity and network capabilities
Agent 365: governance for AI agents
Perhaps the most important new building block is Agent 365. The more companies use their own or Microsoft-provided AI agents, the more urgent the question becomes of how these agents are managed, monitored, and secured. Agent 365 treats every agent much like a human user: with its own identity, access rights, and audit trail. It integrates directly with Microsoft Defender, Entra, and Purview, so that existing security policies automatically apply to agents as well.
Microsoft Entra Suite: identity and network access
The Entra Suite adds several identity and network capabilities to E5 that previously had to be licensed separately – including Entra ID Governance, Entra ID Protection, Microsoft Entra Private Access, Microsoft Entra Internet Access, and Entra Verified ID. For companies with gaps in their identity hygiene, this is a noticeable gain.
What does Microsoft 365 E7 cost?
Microsoft lists E7 at USD 99 per user per month and positions the suite below purchasing the included capabilities separately. The actual comparison depends on region, agreement type, discounts, and licenses already in place. A reliable business case should therefore use the organisation’s own contract and usage data.
Who is the switch worthwhile for?
E7 pays off above all for organizations that
- already use E5 and have Copilot in broad use across the organisation,
- manage a growing number of AI agents and need central governance for them,
- have visible gaps in identity protection that the Entra Suite would close.
For companies with low Copilot usage or without a concrete need for agents, E7 is often too expensive – here it is worth taking a closer look at actual usage before switching.
What companies should consider before switching
Before switching, organisations should evaluate actual Copilot usage, the need for agent governance, and the Entra Suite capabilities they require. They should also confirm the specific agreement, term, and transition conditions with their CSP. Microsoft does not publish a general usage percentage at which E7 automatically becomes worthwhile.
Official Microsoft sources
Whether E7 actually pays off for your company depends heavily on your individual usage profile. As part of a Microsoft Security Assessment, we assess together whether and to what extent the switch is worthwhile – feel free to get in touch.
Assess E7 licensing in context
Review licensing scope, security value, and the rollout path in the context of your tenant.
You speak directly with Sebastian Kerssen – working in the Microsoft ecosystem since 2014, with personal consulting and a dedicated point of contact.
