Microsoft 365 E7: The $99 “Frontier Suite”

A meaningful upgrade or just bundling?

Microsoft has introduced a new licensing tier with Microsoft 365 E7, priced at $99 per user per month. At first glance, it sounds like the ultimate enterprise package – but is the upgrade really worth it, or is it simply an inflated bundling strategy?

What is Microsoft 365 E7?

Microsoft 365 E7 is the new flagship licensing tier that Microsoft positions as the “Frontier Suite.” For $99 per user per month, it includes everything that was previously part of the E5 plan – enhanced with integrated Copilot AI capabilities as well as advanced security and compliance tools. This move follows Microsoft’s clear strategy: deeply integrate AI capabilities into the productivity suite while introducing a new pricing tier that clearly differentiates itself from E3 and E5.

What’s included in the E7 package?

The E7 bundle builds on the existing E5 foundation and expands it across three key dimensions: AI productivity, security, and compliance. Here is an overview of the main additions compared to E5:

E3 vs. E5 vs. E7: Direct comparison

Feature	M365 E3	M365 E5	M365 E7 (NEW)
Price (approx. USD/user/month)	~36 $	~66 $	99 $
Microsoft 365 Copilot (AI)	❌	❌ (Add-on)	✅
Security Copilot	❌	❌	✅
Microsoft Defender (full)	❌	✅	✅
Power BI Premium per user	❌	❌	✅
Teams Premium	❌	❌ (Add-on)	✅
eDiscovery Premium	❌	✅	✅ extended
Unlimited cloud archives	❌	✅	✅
Viva Insights (advanced)	❌	Basic	✅ full

The key question: Is the price increase worth it?

Organizations currently using E5 and additionally licensing the Microsoft 365 Copilot add-on ($30 per user/month) and Teams Premium (~$10) quickly reach a total cost of more than $106 per user. In this scenario, E7 at $99 is not only cheaper but also significantly simplifies license administration. For companies currently running E5 without AI add-ons, however, the question is different: are you willing to pay an additional ~$33 per user for Copilot features that may not yet be actively used?

Three scenarios for your decision

Scenario 1: You are currently using E3

A direct upgrade to E7 represents a significant cost increase (~175%). First evaluate whether the security and compliance capabilities of E5 already provide sufficient value before prioritizing AI capabilities. A staged upgrade – first to E5, then to E7 – is often the more sensible approach.

Scenario 2: You are using E5 with additional add-ons

If you already license Copilot, Teams Premium, and Power BI separately – or plan to do so – E7 becomes financially attractive and significantly reduces the complexity of your licensing stack. Perform a simple TCO calculation: in many cases, the switch pays off within 6–12 months.

Scenario 3: You are at the beginning of your Microsoft 365 journey

For greenfield deployments in AI-driven industries – consulting, financial services, legal, pharma – E7 may be the right choice from the start. Integrating Copilot into workflows from day one can increase user adoption and create measurable value early on.

Critical perspective: Is E7 also a bundling play?

Honestly: partly, yes. Microsoft is using E7 to accelerate Copilot adoption while increasing the average licensing revenue per user. Organizations that intentionally delay Copilot adoption – whether due to data protection concerns, change management requirements, or simply a lack of AI readiness – may end up paying for features they are not yet using. At the same time, it would be unfair to dismiss E7 as pure upselling. Bundling Copilot, Security Copilot, Power BI Premium, and Teams Premium into a single tier actually reduces operational complexity and creates a consistent AI experience across Microsoft workloads.