Microsoft 365 E5 vs E7
E5 has been the top plan for years. E7 sits above it. The real question is not which is bigger. It is whether you are already paying for the pieces E7 bundles.
What E7 actually is
E7, the Frontier suite, is not a new pile of features you have never heard of. It is a bundle. It takes E5 and adds three things you can already buy on their own:
Microsoft 365 Copilot for AI in the apps. The Entra Suite for advanced identity. Agent 365 for governing AI agents. E7 puts them in one SKU, includes Teams, and prices the package below the sum of the parts.
So the decision is a math problem, not a feature hunt. Count what you already plan to buy on top of E5. If it is those three, E7 is the cleaner line on the quote.
Side by side
| Microsoft 365 E5 | Microsoft 365 E7 | |
|---|---|---|
| Security and compliance | Full E5 stack | Full E5 stack |
| Microsoft 365 Copilot | Add-on | Included |
| Entra Suite | Add-on | Included |
| Agent 365 | Add-on | Included |
| Teams | Separate for new enterprise customers | Included |
| List price (per user / month) | About $57, rising to $60 on July 1, 2026 | About $99 |
List prices are estimates in USD on an annual commitment and change over time. Confirm current pricing with your Microsoft partner.
When to stay on E5
You need the top security and compliance stack, but you are not rolling out Copilot to everyone, or you do not need the Entra Suite and Agent 365 yet. Buy E5 and add the one or two pieces you actually use.
When to move to E7
You are deploying Copilot broadly, you want advanced identity, and you are putting AI agents to work and need to govern them. Buying all three separately costs more and makes for a messier quote. E7 bundles them, includes Teams, and comes out lower.
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Does E7 replace E5?
No. E5 stays. E7 sits above it as a bundle for organizations that also want Copilot, the Entra Suite, and Agent 365 in one place.
What is Agent 365?
Agent 365 is the control plane for AI agents: identity, registry, security, and audit for every agent in the tenant. It is a standalone add-on, or included in E7.
Do I need E7 to use Copilot?
No. Microsoft 365 Copilot is available as an add-on to plans like E3 and E5. E7 simply includes it in the bundle.