Ever since the dawn of Copilot (circa early 2023), our customers have been asking about the possibility of Microsoft bundling Copilot with M365 E5. It was merely conjecture during those conversations, but I had a hunch that the day would come where we’d see E5 and Copilot in holy matrimony, riding off into the sunset, a literal match made in heaven! Let’s first be clear that this new Suite is called Microsoft 365 E7, not E5 + Copilot. And to be even more exact, “The Frontier Worker Suite.” And the fun does not stop there as far as what is included in this shiny new toy. We’ll get into the nuts and bolts of what’s included later, talk about pricing, and, finally, who I believe presents a proper use case for E7. But before we unpack all these goodies, I want to put a focus on why E7—and why now—with a recently announced general availability set for May 1, 2026.
The Foundation
I want to be clear that this is my own personal speculation, but I’ll call it substantiated speculation as it comes with 21 years of experience working very closely with Microsoft—including my current role as Principal Consultant and Lead Advisor in our Microsoft Licensing Optimization (MLO) practice. With the advent of AI and the increasing popularity and adoption of Copilot, bundling Copilot with E5 makes logical sense.
To properly deploy Copilot though, it is critical to address your security posture to prevent data breaches and ensure compliance. These measures include enhancing identity and access controls (think Zero Trust Architecture principles), establishing a mature data governance foundation (e.g. unified labeling, DLP, and audit capabilities across M365), and continuous monitoring to maintain control and meet regulatory requirements.
Excuse the plug, but here at Connection, we have workshops specifically designed to do just that: shore up all security gaps in advance of a Copilot deployment. So essentially, you can’t have one without the other—and chronologically, E5 should come before Copilot. I liken it to pouring the foundation before you build your house.
Why Now?
Again, personal speculation here, but I believe the timing of this E7 release is highly strategic and the culmination of several events all happening at once, compounding each other. First, Microsoft has done a fantastic job in seeding the market with Copilot. As an example, I see Copilot subscriptions in the portfolio mix of almost every one of my customers. But they all are at different stages of this AI journey. Let’s also not forget this year’s Super Bowl ad featuring NFL recruiters leveraging Copilot to scout players and make data-driven decisions. Copilot branding has become commonplace.
Second, we’re about to turn the clock and begin the final quarter of Microsoft’s fiscal year and the general availability release date of May 1 is clearly not a coincidence. Third, Microsoft has already announced price increases to many key Enterprise Suites, including M365 E5—which is increasing by 5.3% starting July 1, 2026. And lastly, Microsoft’s stock performance YTD.
I believe that the culmination of these four events has led to this E7 release prior to what would have historically been a key announcement in July to kick off Microsoft’s new fiscal 2027. I also believe it was advantageous for Microsoft to make this announcement now—and just as advantageous for their customers to build E7 into their portfolios. What better timing than Microsoft’s Q4 when Microsoft has historically been more willing to negotiate.
E5 vs. E7
Let’s dig into the incremental differences between E5 + Copilot as compared to M365 E7 and discuss some pricing logic. E7 layers on top of E5 + Copilot—both Entra Suite and Agent 365. Entra Suite is essentially Microsoft’s all-in-one Zero Trust access solution that brings together identity security, access governance, and network access controls under one cloud-based bundle. Entra Suite is designed to give organizations least privilege access everywhere (e.g. cloud apps, on-prem apps, and Web traffic based on identity, device, and real-time risk). You can securely control who can access which apps, from where, and under what conditions, without relying on legacy VPNs or disconnected tools. It is absolutely a step above what Entra Plan 1 and Entra Plan 2 can deliver.
With the increased adoption of AI across organizations, and the need to govern AI agents—much like human workers with a pulse—Microsoft’s Agent 365 creates an enterprise control plane for these AI agents. This allows organizations to see, control, secure, and manage these AI agents at scale across the M365 estate, Azure, and even third-party platforms. Agent 365 treats AI agents like digital employees, giving IT and SecOps one place to manage their identity, access, behavior, and lifecycle. Both Entra Suite and Agent 365 fit hand-in-glove when enhancing an organization’s security posture—especially in this age of rapid AI progression.
Pricing and Value
M365 E7 Suite is slated to cost $99 per user, per month. M365 E5 on an Enterprise Agreement is $57 per user, per month until July 1, when Microsoft will increase to $60. Copilot is another $30 per user, per month. We’re already $90 into that $99 price point. Entra Suite à la carte is $12 per user, per month. Microsoft Agent 365 will be $15 per user, per month, bringing us to a grand total of $117 per user, per month for the sum of the parts. The way this math shakes out, with M365 E7, you’re essentially getting Microsoft Agent 365 at no cost plus change to put right back into your pocket!
Final Thoughts
If you’re already invested in M365 E5 and Copilot today, E7 is worthy of serious evaluation and deep consideration. Additionally, if you have concerns about how to manage and govern AI agents, Agent 365 could be a great fit—which launches à la carte alongside M365 E7 on May 1.
At minimum, I would highly recommend gaining some level of preparedness in understanding the components of this suite, its pricing, and determining your own internal desire to make this investment. M365 E7 hits Microsoft pricelists in April and that means Microsoft will be ready to talk to YOU!
Within Connection, we have a deep bench of Microsoft experts prepared to support our customers on this new frontier, E7. We meet our customers exactly where they are on this journey. As the nature of modern work continues to evolve, we’re prepared to be there to advise and support them every step of the way!
Casey Lindsay
Casey Lindsay is a Strategic Software Consultant with Connection’s XLO Practice. Casey brings over 15 years of vast Microsoft experience helping Connections’ clients navigate all the complex decisions surrounding their Microsoft technology and investment strategies. When not tackling Microsoft decisions, Casey can be found outside spending time with his family traveling with their RV to create lasting memories doing things like hiking, kayaking, and paddleboarding.
