Microsoft now has about 450 million Microsoft 365 users in the commercial market. While this enterprise market is already saturated, Microsoft"s aim is to increase ARPU by moving customers to more premium plans. Until now, Microsoft 365 E5 was the costliest plan for enterprises, costing around $60 per month per user.
Today, Microsoft announced Microsoft 365 E7, its most premium plan, which will cost $99 per user per month. The Microsoft 365 E7 plan will include the following:
- Microsoft 365 E5 with Teams
- Microsoft Entra Suite and advanced Defender, Intune, and Purview security capabilities
- Microsoft 365 Copilot with Copilot Studio and WorkIQ
- Microsoft Agent 365
As you can see from the table below, buying all the above services à la carte would cost around $117. Therefore, subscribing to Microsoft 365 E7 will save customers about 17% directly.
Judson Althoff, CEO of Microsoft Commercial Business, said the following regarding the Microsoft 365 E7 launch:
"Customers have told us E5 alone is no longer enough; they do not want multiple tools stitched together, they want one trusted solution. At $99 per user, E7 is priced below purchasing these capabilities à la carte, giving customers a simpler, more cost-effective way to deploy enterprise AI at scale."
Microsoft 365 E7 will be available for purchase for enterprise customers on May 1.
Microsoft also announced that Agent 365 will be generally available starting May 1 for $15 per user per month. As the usage of agents increases exponentially across the enterprise, managing them without weakening the existing security posture is critical. Agent 365 solves this problem by providing a unified control plane for agents.
With Agent 365, enterprises can observe, secure, and govern every agent using the management, security, and governance processes they already use for employees. Even the tools they already use including Microsoft Admin Center, Defender, Entra, and Purview can be used for agent security and governance.
On a related note, Microsoft today announced Microsoft 365 Copilot Wave 3 which includes the preview of Copilot Cowork.