Sipu Jha
Microsoft is introducing a new top-tier subscription for its Office productivity suite, Microsoft 356 E7, priced at $99 per user per month. That’s a 65% increase as compared to the present E5 plan which costs $60 after upcoming price hikes. The E7 bundle includes advanced artificial intelligence tools, aiming to attract enterprise customers seeking improved productivity features. Microsoft is bringing intelligence + trust together with Microsoft 365 E7 will be available starting May 1.
What E7 Includes
The new plan combines several add-ons:
Copilot AI ($30) – Microsoft’s flagship AI assistant for Office apps.- Entra Identity Tools ($12) – Enhanced identity and access management.
- Agent 365 ($15) – A new product for managing companies’ AI agents.
Together, these additions are designed to help organizations securely deploy AI across workflows while boosting efficiency.
| Feature / Product | Availability | Price | Key Details |
|---|---|---|---|
| Copilot Cowork | Research preview in March 2026 (Frontier program) | Included in Copilot | Built with Anthropic; enables long-running, multi-step tasks (e.g., scheduled emails, meeting prep). |
| Next-gen Agentic Experiences | Rolling out March 2026 | Included in Copilot | Embedded in Word, Excel, PowerPoint, Outlook, and Copilot Chat (formerly agent mode). |
| Claude in Copilot Chat | Available now via Frontier program | Included in Copilot | Model-diverse design; integrates Anthropic’s Claude alongside OpenAI models. |
| Agent 365 | General availability May 1, 2026 | $15 per user/month | Control plane for AI agents; lets IT/security leaders observe, govern, and secure agents across the org. |
| Microsoft 365 E7 (Frontier Suite) | General availability May 1, 2026 | $99 per user/month | Combines E5, Copilot, and Agent 365; includes Entra Suite, advanced Defender, Intune, Purview; powered by Work IQ; delivers unified security + productivity. |
Copilot Cowork launch
Alongwith E7, Microsoft is rolling out Copilot Cowork, developed in association with Anthropic. The tool is designed to handle multi-step tasks such as sending secluded emails, preparing meeting materials and also coordinating internal calls. Copilot Cowork will also be available this month as a research preview for clients in Microsoft’s Frontier program, which provides early access to AI features.
Poll
How do you feel about the price increase for Microsoft 365 E7?
Microsoft’s strategic push
Microsoft has invested more than $100 billion in data center infrastructure, including Nvidia chips, to power AI models. By bundling AI into office subscriptions, the company now aims to generate returns on that investment. Judson Althoff, CEO of Microsoft’s commercial business, said the new tier should drive adoption of Copilot and encourage more organizations to upgrade from E5.Microsoft 365 commercial products and cloud services accounted for 30% of company revenue in the December quarter. While seat growth slowed to 6%, Microsoft is increasingly monetizing each user through AI add-ons. CEO Satya Nadella recently revealed that 15 million Copilot seats have been sold, representing about 3% of commercial Microsoft 365 subscriptions.
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