Microsoft 365 E7 suite launches at $99 per user, bundling E5, Copilot and Agent 365

Microsoft's new Microsoft 365 E7 suite became available May 1, 2026, at $99 per user per month. It combines Microsoft 365 E5, Microsoft 365 Copilot, and Agent 365, along with the Microsoft Entra Suite and additional Defender, Intune, and Purview capabilities. Microsoft says E7 costs less than buying those pieces separately. Techzine called it the biggest Microsoft licensing change in ten years.

E7 is aimed at large organizations already on E5, but it signals where Microsoft is taking its licensing: AI assistance and AI agent management packaged with security and compliance tools. For comparison, Microsoft 365 E5 lists at $60 per user per month after the July 2026 price change, and Copilot is sold as a separate add-on. Whether E7 saves money depends on how many of your users would get Copilot anyway.

If you are on E3 or E5, don't let an E7 pitch drive a renewal decision on its own. Ask your licensing provider to model three options: staying on your current suite, adding Copilot only for the users who need it, and moving to E7. Make sure the comparison uses your actual user counts and your current discount level, not list price. Also ask which features in E7 you would realistically deploy in the first year.

Agent 365, which is also sold on its own at $15 per user per month, is Microsoft's tool for registering, monitoring, and governing AI agents across a tenant.