Microsoft 365 E7 is Microsoft's most wide-ranging Microsoft 365 licence to date. It bundles AI, identity security and agent governance into a single licence, and has been generally available since 1 May 2026. This article covers what it includes, what it costs in the UK, how it compares to E5, and what UK SMEs should consider before making a licensing decision.
Updated October 2026: This article now includes Microsoft's confirmed UK pricing for E7 and explains how E7 fits with the new Copilot that Microsoft announced on 25 September 2026.
What is Microsoft 365 E7?
Microsoft 365 E7, which Microsoft calls the Frontier Suite, is a top-tier licence that brings together several products many organisations previously bought separately. Microsoft describes it as the largest Microsoft 365 licensing addition in a decade. It is aimed at businesses moving beyond early AI experiments that want a single, governed platform for using AI at scale.
The suite includes four main components:
- Microsoft 365 E5: the enterprise productivity, security and compliance suite
- Microsoft 365 Copilot: AI built into Word, Excel, Outlook, Teams and the other Microsoft 365 apps
- Microsoft Entra Suite: identity and network security built on Zero Trust principles
- Agent 365: a governance and control layer for managing AI agents across the organisation
Microsoft says that combining these saves up to 15% compared with buying each product separately. E7 is available with and without Teams, and Microsoft lists it as suitable for organisations of any size.
What does each component add?
Microsoft 365 E5: the foundation
E7 keeps everything in E5, including Microsoft Purview (data governance and compliance), Intune (device management and endpoint security), Microsoft Defender, and the advanced analytics in E5. Organisations already on E5 lose nothing by moving to E7; the new suite extends what they already have.
Microsoft 365 Copilot: AI across your daily tools
Copilot has been available as an add-on for over two years. In E7 it becomes part of the core licence. Copilot works across the Office apps, drawing on the data each user can already access in Outlook, SharePoint and OneDrive, to help with drafting, summarising, analysing and automating. Organisations can extend it with Copilot Studio and Power Platform connectors to bring in more data sources.
Microsoft Entra Suite: Zero Trust identity security
Entra Suite moves organisations away from traditional VPN-based access towards a Zero Trust and Secure Access Service Edge (SASE) architecture. Key features include:
- Microsoft Entra Private Access: secure access to private apps without a VPN
- Microsoft Entra Internet Access: secure web filtering and access policy
- Microsoft Entra ID Governance: lifecycle management for user access
- Microsoft Entra ID Protection: risk-based identity threat detection
- Microsoft Entra Verified ID: decentralised identity verification
For businesses already considering a modernisation of their network access, having Entra Suite inside E7 removes a separate procurement decision.
Agent 365: governance for AI agents
Agent 365 is the most distinctly new part of E7. Microsoft's position is that AI agents increasingly operate like digital workers: they access data, trigger workflows and carry the same regulatory expectations as people. Agent 365 gives IT teams the governance layer to manage this. It controls who can create agents, what those agents can do and which compliance policies apply, using the same identity framework in Entra that governs human users.
Agent 365 became generally available alongside E7 on 1 May 2026. It is also sold as a standalone licence, so you don't need E7 to use it. It also handles cost management for Copilot's usage-billed features (see below).
When was Microsoft 365 E7 released, and what does it cost?
Microsoft 365 E7 became generally available on 1 May 2026, globally including the UK. It can be bought through Cloud Solution Providers and Microsoft's enterprise agreements.
Microsoft's published UK list prices, per user per month on an annual commitment, paid yearly and excluding VAT, are:
| Licence | UK list price |
|---|---|
| Microsoft 365 E7 | £81.60 |
| Microsoft 365 E7 (no Teams) | £75.00 |
| Microsoft 365 E5 | £51.60 |
So for £30 more per user per month than E5, E7 adds Copilot, Entra Suite and Agent 365. The US list price is $99.
List price is a starting point, not the price you'll pay. Your actual cost depends on how you buy (CSP, enterprise agreement or a public sector framework), your commitment term, and any agreements and promotions already in place. Speak to your Advantage account manager for a figure based on your current licensing.
Source: Microsoft 365 E7 UK pricing, Microsoft
How E7 fits with the new Copilot
On 25 September 2026, Microsoft restructured Copilot around three capabilities: Home, where Chat and Cowork sit together; Code, for building apps and tools; and Autopilot, an agent that works in the background without waiting for a prompt. It also split how Copilot is paid for.
According to Microsoft, Chat, Copilot in the Office apps and model selection remain covered by the per-user licence. Cowork, Code, Autopilot and some advanced models are billed by usage. The Copilot licence inside E7 is the per-user licence, so expect usage-billed features to be an additional, variable cost on top of E7 rather than part of the fixed price.
This makes Agent 365 more relevant, not less. Microsoft is extending Agent 365's cost management to cover Code and the new Copilot Managed Runtime, with Copilot Studio agents planned for October. Spending policies and approvals need to be in place before anyone switches on agents that spend in the background.
We cover the new Copilot in more detail in The new Microsoft Copilot: what Home, Code and Autopilot mean for UK SMEs.
Source: Introducing the new Copilot with Home, Code and Autopilot, Microsoft
Who is E7 designed for?
Microsoft has positioned E7 at organisations ready to move from AI pilots to operational, governed AI. The strongest candidates are businesses that:
- Are already on Microsoft 365 E5 and actively deploying, or planning to deploy, Copilot
- Are running or exploring AI agents and need a governance framework around them
- Want to modernise their identity and network access
- Already buy Copilot and Entra Suite separately and want to simplify and reduce cost
The saving only exists if you would otherwise buy all four components. If you'd never have bought Entra Suite, a bundle that includes it isn't a discount.
If you're on E3
The step up to E7 is significant in both capability and cost. It may well be the right move, but it should be modelled against your AI plans rather than treated as an automatic upgrade.
If you're on Business Premium
Many UK SMEs run Microsoft 365 Business Premium rather than an enterprise plan. Business Premium is limited to 300 users, while E7 is an enterprise licence. For most Business Premium customers, the more natural route is to add Copilot to Business Premium for the people who will use it, and add Agent 365 as a standalone licence once agents are in use. Moving to E7 makes sense mainly if you're also outgrowing Business Premium's security and compliance features.
Not everyone needs the same licence
You don't have to put everyone on E7. Heavy Copilot users and people who build or manage agents may justify it, while others stay on their current licence. A mixed estate is more work to manage, but it usually costs less than licensing everyone at the top tier.
What should UK businesses do now?
With pricing confirmed, the decision can now be modelled properly. Before committing, we recommend:
- Listing what your current licence includes and what you already buy separately
- Mapping your AI plans for the next 12 months against what E7 enables, including whether you'll use Cowork, Code or Autopilot
- Modelling the cost at your actual price, for the users who need E7 rather than everyone
- Setting spending policies for usage-billed Copilot features before they're switched on
- Building governance, security and change management into any AI rollout from the start
In many cases, E5 or Business Premium with targeted add-ons will remain the right approach for now. The decision should follow the strategy, not precede it.
Talk to Advantage About Microsoft 365 Licensing
Advantage is a Microsoft Solutions Partner supporting SMEs across the UK. We work with businesses in manufacturing, professional services, distribution and not-for-profit to plan and implement Microsoft 365 in a way that delivers a measurable return. If you want to know whether E7 is the right move for your business, or whether a mix of licences would serve you better, we're happy to talk it through.
Call us on 020 3004 4600, email hello@advantage.co.uk, or request a conversation with our team.
Related Resources
Microsoft 365 Copilot Readiness Assessment
Microsoft 365 Copilot Workshop
Microsoft 365 & Copilot
Everyday AI That Works for You
The new Microsoft Copilot: what Home, Code and Autopilot mean for UK SMEs
Frequently asked questions about Microsoft 365 E7
Common questions about what Microsoft 365 E7 includes, what it costs in the UK, and what UK businesses should consider before making any licensing decisions.
What is Microsoft 365 E7?
Microsoft 365 E7 is a top-tier Microsoft 365 licence that bundles Microsoft 365 E5, Microsoft 365 Copilot, the Microsoft Entra Suite and Agent 365 into one package. Microsoft calls it the Frontier Suite and describes it as the largest Microsoft 365 licensing addition in a decade.
When did Microsoft 365 E7 become available in the UK?
Microsoft 365 E7 became generally available on 1 May 2026, globally including the UK.
How much does Microsoft 365 E7 cost in the UK?
Microsoft's UK list price is £81.60 per user per month, or £75.00 without Teams, on an annual commitment paid yearly, excluding VAT. Your actual price depends on how you buy, your commitment term and any existing agreements.
How does Microsoft 365 E7 differ from E5?
E7 includes everything in E5 and adds Microsoft 365 Copilot, the Microsoft Entra Suite and Agent 365. At UK list prices, E7 costs £30 more per user per month than E5. Microsoft says organisations that would otherwise buy these components separately can save up to 15%.
What is Agent 365?
Agent 365 is Microsoft's governance and control layer for AI agents. It lets IT teams manage who can create agents, what those agents can access and which compliance policies apply, using the same framework that governs users in Microsoft Entra. It is included in E7 and also sold as a standalone licence.
Does E7 include Copilot Cowork, Code and Autopilot?
E7 includes the per-user Microsoft 365 Copilot licence, which covers Chat, Copilot in the Office apps and model selection. Microsoft bills Cowork, Code, Autopilot and some advanced models by usage, so expect these to be a variable cost on top of E7.
Can a business on Microsoft 365 Business Premium move to E7?
Yes, but E7 is an enterprise licence, and for many Business Premium customers adding Copilot, and Agent 365 when agents are in use, is the more cost-effective route. E7 makes most sense if you also need enterprise-grade security and compliance.
Should my business upgrade to Microsoft 365 E7?
That depends on your current licensing and your AI plans. Organisations already on E5 that are deploying Copilot widely or scaling AI agents will often find E7 the most cost-effective route. For those on E3 or Business Premium, the step up should be modelled carefully, and E7 may only be needed for some users.
