Last week, it looked like Microsoft was getting ready to ship a new AI-powered software bundle for Microsoft 365, dubbed E7, which would include Microsoft Copilot and a new AI agent hub — Agent 365.Well, Microsoft has now confirmed that the rumored AI-centric E7 subscription tier does exist and is slated to launch on May 1. Plus, the Agent 365 platform for managing AI agents across Microsoft 365 and third‑party services is also slated to ship to broad availability on the same date, priced separately at $15 per user per month.The software giant describes the complete E7 bundle as "the First Frontier Suite," which will cost $99/user/month. Previously, I had described Microsoft's new AI-powered package as "the E5 enterprise tier, but with AI offerings on top."Since Microsoft’s AI‑powered E7 subscription tier includes both Microsoft 365 Copilot and Agent 365, the $99 price point might feel like a bargain, or, as The Register's reporting on Gartner's research puts it, “priced below purchasing these capabilities à la carte.”
💬 Will the new tier offer value to Microsoft 365?
According to business research firm Gartner, the discount on Microsoft's new E7 subscription tier isn't as impressive as it might seem, as it only trims 13.2%. Its analysts believe that "bigger bundles should get bigger discounts." Perhaps more interestingly, it says that Microsoft 365's E3 and E5 subscription tiers give more value for money with better discounts regarding what they have to offer.
Gartner believes organizations will find the value of ME7 to be questionable for the majority of knowledge workers today... Upgrading to the ME7 bundle for Agent 365 is not advised until Microsoft adds value
Gartner
In that, Microsoft seemingly shipped Microsoft 365's new AI-powered subscription tier to meet the need for a plan "with multiple tools stitched together" over what Microsoft 365 E5 has to offer.Microsoft 365 E7 ships with productivity and security apps, Microsoft Copilot, and its new AI agent hub right out of the gate. Still, skepticism surrounds the subscription tier, particularly the Agent 365 offering, which Gartner calls "a work in progress with limited net new functionality to justify its $15 pupm [sic] price point."Microsoft’s $99 E7 premium tier launches May 1. Do you think it’s worth the price? Share your thoughts in the comments!
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