Microsoft 365 E3 vs E5 vs E7
E7 is the Frontier Suite: E5 plus Microsoft 365 Copilot, Entra Suite and Agent 365 in one SKU. Start with that fact, then decide if you need the bundle.
What it is
Microsoft 365 enterprise suites used to stop at E5 for most AI conversations. That changed with Microsoft 365 E7 — the Frontier Suite. Microsoft partner announcements describe E7 reaching general availability around 1 May 2026. Learn’s licence feature overview treats E7 as a strict superset of E5: it adds Copilot, the full Microsoft Entra Suite, and Agent 365 rather than removing E5 capabilities.
Where it sits in the stack
Suites are the seat layer. On top sit add-ons (Microsoft 365 Copilot on E3/E5) and meters (Copilot Credits, Foundry). E7 moves Copilot and agent control-plane SKUs into the seat — which changes the business case, not the need for consumption discipline.
Key features / capabilities
- E3 — core productivity apps and Teams; Entra ID P1-class identity; core compliance; Copilot Chat included for eligible users; Microsoft 365 Copilot as add-on.
- E5 — E3 plus advanced security and compliance (Entra ID P2, broader Defender and Purview as licensed); Security Copilot where licensed; Microsoft 365 Copilot still typically an add-on.
- E7 — E5 plus Microsoft 365 Copilot included, full Microsoft Entra Suite, and Agent 365 as the agent control plane.
Always confirm the current feature list on Microsoft Learn (“Prepare for Microsoft Copilot by comparing E3, E5, and E7”) and your Product Terms — suite contents can be updated.
Who it is for / when to use
Compare total cost of E5 + Copilot + Entra Suite + Agent 365 as separate lines versus E7 as one suite. E7 is for organisations already committed to Copilot and agent governance at scale. E3 + selective Copilot seats remains valid when only a fraction of users have clear workflows.
How to brief procurement
Give procurement three numbers: (1) E5 + Copilot + Entra Suite + Agent 365 as stacked SKUs, (2) E7 as a single suite, (3) E3 + selective Copilot seats for a named cohort. Add a fourth line for expected Copilot Credits / Foundry consumption so nobody thinks the suite ends the meter story. Then verify against the current price list and Product Terms — this site is not a quote.
Cost layer
Three layers still apply: seat (the suite), add-on (anything not in the SKU), consumption (Studio / agents / Foundry). E7 does not make meters free. See Managing cost and the feature matrix.
Risk and governance
E7’s Agent 365 and Entra Suite strengthen the control plane — use them. Do not assume Copilot included means SharePoint oversharing is fixed. More: Managing risk.
Adoption tip
Brief stakeholders with one diagram: Chat included on eligible seats; Copilot in-app on add-on or E7; agents metered separately. Habits: Adoption.
Related Ideas
M365 Copilot · Copilot Chat · Production grade · Four pressures
Source note: check Microsoft Learn and Product Terms before you brief finance or legal. Products, names and meters change. This site is independent commentary, not Microsoft official documentation.