Microsoft has announced its most wide-ranging Microsoft 365 package to date. Microsoft 365 E7 bundles AI, identity security and agent governance into a single licence, available from 1 May 2026. This article covers what it includes, how it compares to E5, and what UK SMEs should consider before making any licensing decisions.
What is Microsoft 365 E7?
Microsoft 365 E7 is a new top-tier licence that brings together several products many organisations currently purchase separately. Described by Microsoft as the largest Microsoft 365 licensing addition in a decade, it is aimed at businesses that are moving beyond early AI experiments and want a single, governed platform for AI deployment at scale.
The suite includes four main components:
- Microsoft 365 E5: the existing enterprise productivity, security and compliance suite
- Microsoft 365 Copilot: AI capabilities embedded across Word, Excel, Outlook, Teams and 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
By combining these, Microsoft says organisations can save up to 15% compared with purchasing each product separately.
What does each component add?
Microsoft 365 E5: the foundation
E7 retains everything in E5, including Microsoft Purview (data governance and compliance), Intune Suite (device management and endpoint security), Microsoft Defender, and the advanced analytics capabilities in Microsoft 365 E5. Organisations already on E5 are not losing anything by moving to E7; the new suite extends what is already in place.
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 Office applications, drawing on the data users already have access to in Outlook, SharePoint and OneDrive, to help with drafting, summarising, analysing and automating. Organisations can extend it further using Copilot Studio and Power Platform connectors to bring in additional data sources.
Microsoft Entra Suite: Zero Trust identity security
Entra Suite moves organisations away from traditional VPN-based access toward 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 that have been considering a modernisation of their network access model, Entra Suite included in E7 removes the need for a separate procurement decision.
Agent 365: governance for AI agents
Agent 365 is the most distinctly new component in E7. Microsoft's position is that AI agents are increasingly operating 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, treating AI systems with the same access management framework used for human users in Entra.
Full technical detail on Agent 365 is still limited ahead of the May launch. Microsoft has indicated further information will be published in the coming weeks.
When is Microsoft 365 E7 available, and what will it cost?
Microsoft has confirmed general availability from 1 May 2026, applying globally including the UK market.
UK pricing has not yet been confirmed. US list pricing has been referenced in industry commentary, but that figure should not be used as the basis for UK commercial decisions. The right price for your business will depend on your current agreements, whether you purchase through a Cloud Solution Provider, enterprise agreement, or public sector framework, and any volume commitments already in place.
Pricing update: We will update this article as confirmed UK pricing becomes available. If you want to be notified when we have that detail, speak to your Advantage account manager or get in touch here.
Who is E7 designed for?
Microsoft has positioned E7 at organisations that are ready to move from AI pilots to operational, governed AI deployment. The strongest candidates are businesses that:
- Are already on Microsoft 365 E5 and actively deploying or planning to deploy Copilot
- Are exploring or running AI agents and need a governance framework around them
- Are looking to modernise their identity and network access approach
- Currently purchase Copilot and Entra Suite separately and want to simplify and reduce cost
For organisations still on E3, the step up to E7 is significant in both capability and likely cost. It may well be the right move, but it should be evaluated carefully against the current Microsoft roadmap rather than treated as an automatic upgrade.
What should UK businesses do now?
The most useful thing to do before May is not to make a decision but to prepare for one. That means:
- Understanding what your current licence includes and what you are purchasing separately
- Mapping your AI adoption plans against what E7 enables
- Modelling the commercial impact once UK pricing is confirmed
- Making sure governance, security and change management are built into any AI conversation from the start, not bolted on later
In many cases, E5 with targeted add-ons will remain the right approach for the near term. 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 measurable return. If you want to understand whether E7 will be the right move for your business when UK pricing lands, we are happy to have that conversation now.
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
Frequently asked questions about Microsoft 365 E7
Common questions about what Microsoft 365 E7 includes, when it is available, and what UK businesses should consider before making any licensing decisions.
What is Microsoft 365 E7?
Microsoft 365 E7 is a new top-tier Microsoft 365 licence that bundles Microsoft 365 E5, Microsoft 365 Copilot, the Microsoft Entra Suite, and Agent 365 into a single package. Microsoft describes it as the largest Microsoft 365 licensing addition in a decade, designed for organisations moving from AI experimentation to governed AI at scale.
When is Microsoft 365 E7 available in the UK?
Microsoft has confirmed that Microsoft 365 E7 will be generally available from 1 May 2026. This applies globally, including the UK market.
How does Microsoft 365 E7 differ from E5?
Microsoft 365 E7 includes everything in E5 and adds three components: Microsoft 365 Copilot (AI productivity tools embedded across Office apps), the Microsoft Entra Suite (Zero Trust identity and network security), and Agent 365 (a governance and management layer for AI agents). Microsoft says organisations that purchase these separately can save up to 15% by moving to E7.
What is Agent 365?
Agent 365 is a new Microsoft product included in E7 that gives IT teams control and governance over AI agents within their organisation. It allows IT teams to manage who can create agents, what those agents can access, and which compliance policies apply, treating AI agents with the same governance framework applied to users in Microsoft Entra.
What is the Microsoft 365 E7 price in the UK?
Microsoft has not yet published confirmed UK pricing for Microsoft 365 E7. US list pricing has been referenced in industry commentary but should not be used as the basis for UK commercial decisions. Pricing will depend on factors including whether you purchase through a Cloud Solution Provider, enterprise agreement, or public sector framework.
Should my business upgrade to Microsoft 365 E7?
That depends on your current licensing position and your AI adoption plans. Organisations already on E5 that are actively deploying Copilot or planning to scale AI agents will likely find E7 the most cost-effective route. For organisations on E3 or earlier, the step up involves a significant capability and cost change that should be modelled carefully once UK pricing is confirmed. In many cases, E5 with targeted add-ons may remain appropriate in the near term.
