Microsoft is rolling out two of its most significant commercial changes in years, and they’re landing just months apart. Starting May 1, a new top-tier licensing suite called Microsoft 365 E7 becomes available for purchase. Then, starting July 1, Microsoft is increasing prices across virtually every Microsoft 365 plan. Together, these changes create both an opportunity and a deadline.
Here’s what every organization running Microsoft 365 needs to know.
The New Suite: Microsoft 365 E7
Microsoft is calling E7 the “Frontier Suite,” and it represents the first new enterprise licensing tier since E5 launched back in 2015. The premise is straightforward: as AI agents proliferate across the enterprise, organizations need more than productivity software and security tools. They need a unified layer that can govern, observe, and secure both human users and AI agents operating on their behalf.
E7 bundles four components into one license:
- Microsoft 365 E5: Full Office suite, Teams, Exchange, SharePoint, Defender, Intune, Purview, Power BI Pro ($60/user/mo from July 1)
- Microsoft 365 Copilot: AI embedded in Word, Excel, PowerPoint, Outlook, and Teams ($30/user/mo)
- Agent 365: Unified control plane to govern, observe, and secure AI agents across the organization ($15/user/mo)
- Microsoft Entra Suite: Full identity and Zero Trust network access stack ($12/user/mo)
Purchased separately, these components add up to roughly $117 per user per month. E7 is priced at $99 per user per month, saving approximately $18 per user per month — or about $216 per user annually. At 100 users, that’s $21,600 back per year compared to buying everything à la carte.
The component that deserves the most attention is Agent 365, because it’s brand new. As AI agents become more common inside organizations, managing them through the same governance and security tooling used for human employees becomes a genuine operational requirement.
E7 makes the most sense for organizations already on E5 that were planning to add Copilot anyway, or those looking to move from E3 to a fully AI-capable, enterprise-grade stack in a single step.
The Price Increases: Effective July 1, 2026
Independent of E7, Microsoft is raising prices across its entire commercial Microsoft 365 portfolio. Every major plan sees an increase, and the increases are not trivial.
| Plan | Current Price | New Price (Jul 1) | Increase |
|---|---|---|---|
| Microsoft 365 Business Basic | $6.00 | $7.00 | +16% |
| Microsoft 365 Business Standard | $12.50 | $14.00 | +12% |
| Microsoft 365 E3 | $36.00 | $39.00 | +8% |
| Microsoft 365 E5 | $57.00 | $60.00 | +5% |
| Microsoft 365 F1 (Frontline) | $2.25 | $3.00 | +33% |
| Microsoft 365 F3 (Frontline) | $8.00 | $10.00 | +25% |
| Microsoft 365 Apps | $12.00 | $14.00 | +17% |
| Entra Plan 1 | $6.00 | $7.00 | +16% |
One additional change that often gets overlooked: Microsoft has also increased the price of Annual Paid Monthly plans by 5% above the standard annual commitment rate. This means organizations paying on a month‑to‑month cadence under an annual subscription are now paying a premium for that flexibility.
The Window Between May and July
The timing here matters. E7 launches May 1, and the price hikes land July 1. That window is an opportunity.
For eligible licenses, it’s possible to commit to 1‑year or 3‑year subscriptions before July 1 and lock in current pricing for the full duration of that term. An organization on Microsoft 365 Business Standard that commits to a 3‑year annual agreement before July 1 pays $12.50 per user per month for the life of that term, not $14.00.
| Key Date | What Happens | Action to Take |
|---|---|---|
| Now through June 30 | Current pricing still in effect | Commit to 1‑year or 3‑year terms |
| May 1, 2026 | E7 becomes available | Evaluate E7 for E5 environments |
| July 1, 2026 | Price increases take effect | Unprotected subscriptions move to new rates |
How Virtuas Helps Companies Save More
As a Microsoft partner transacting through the Cloud Solution Provider (CSP) program, Virtuas provides additional discounts on Microsoft 365 licensing beyond what Microsoft publishes as standard list pricing.
This means organizations can stack multiple forms of savings:
- Lock in pre‑July pricing before increases take effect
- Pay annually upfront to avoid Microsoft’s new 5% surcharge
- Access Virtuas partner‑level CSP discounts
Combined, these represent meaningful reductions compared to what the same licenses will cost at post‑July pricing.
Where to Start
The right next step depends on where an organization is in its Microsoft 365 journey. We’re recommending a licensing review before July 1 to understand which plans are currently in use, what renewal dates look like, and where a longer commitment term makes financial sense.
For environments already on E5 where Copilot has been under evaluation, the E7 bundle math is worth running seriously. At $18 per user per month in savings versus à la carte, the numbers work for any organization planning to deploy AI across its workforce.
Anyone interested in a licensing review or in discussing E7 ahead of the May 1 launch date is welcome to reach out to the Virtuas account team directly.
How to Save ~10% on Microsoft Licensing Before Your 2026 Budget Locks In
For many organizations, Microsoft 365 licensing is one of the largest recurring IT expenses — but also one of the easiest places to overspend without realizing it. As we move into the 2026 budget cycle, this is the perfect time to review how your licensing is structured, what terms you’re on, and whether you’re missing out on meaningful savings.
The good news? Most companies are.
At Virtuas, we routinely help organizations uncover 10–25% savings simply by restructuring how their licenses are billed — with zero impact on productivity or operations.
Monthly vs. Annual Licensing: The Hidden Cost Difference
Most businesses start Microsoft 365 on monthly terms because it’s the default Microsoft recommends. But monthly licensing carries a built‑in premium.
Switching to annual terms typically saves organizations around 10% on their Microsoft 365 spend — a gap that becomes even more meaningful once Microsoft’s July pricing adjustments land.
Annual licensing also simplifies operations:
- Fewer billing cycles
- More predictable budgeting
- Cleaner reconciliation for finance teams
Why Companies Leave Money on the Table
Across almost every new client, we see the same pattern:
- Finance teams rarely see detailed licensing data
- IT teams seldom revisit license structures after initial setup
- Unused or overlapping licenses quietly accumulate
- Price increases go unnoticed until after renewal
A short review often unlocks thousands in annual savings — without cutting tools or reducing capability.
A Quick Licensing Audit Clears Everything Up
Our team performs a fast, transparent audit that includes:
- A breakdown of your current SKUs
- A quantity‑versus‑usage review
- A monthly vs. annual cost comparison
- Estimated savings projections
- Clear optimization recommendations
If you’re preparing your 2026-2027 budget, now is the best time to evaluate your Microsoft licensing before the next renewal cycle locks in your cost structure.
