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Microsoft 365 confirms new premium tier with a premium price
E7 arrives with plenty of AI and not much of a discount. Got to keep those shareholders happy Microsoft has finally confirmed that its AI-centric E7 subscription tier - where it licenses AI agent agents like employees - will debut on May 1 for an eye-watering $99 per user per month (pupm). The E7 tier of Microsoft 365 is not unexpected - last week reports indicated an enterprise license bundling Copilot and agent management tools into one expensive package was on its way. Microsoft kept quiet until now. Dubbed "the First Frontier Suite" by Microsoft, a company that never saw some hyperbole it didn't like, E7 brings together the existing Microsoft 365 E5 subscription, with Microsoft 365 Copilot and Agent 365. Agent 365, a control plane for AI agents, is also due to hit general availability on May 1, and costs $15 per user per month. Add that, Copilot, and Microsoft 365 E5 together (along with the Entra suite, advanced Defender, and Purview), and E7 is "priced below purchasing these capabilities à la carte." However, Gartner crunched the numbers and found the E7 discount, compared to buying the elements "à la carte," was not particularly impressive, coming in at 13.2 percent. The analyst said: "Bigger bundles should get bigger discounts," and noted that larger discounts were on offer when comparing Microsoft 365 E3 and E5 to their component parts. The consultancy was no more enthusiastic about Agent 365 itself, calling it "a work in progress with limited net new functionality to justify its $15 pupm price point." "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." Enterprises must tread carefully and check their contracts, it added. "If ME7 and Agent 365 uptake do not meet its expectations, Microsoft could revise the offerings. Avoid nonreduction clauses that would prevent taking advantage of changes." It is not the rapturous response Microsoft might have hoped for. Judson Althoff, CEO of Microsoft's Commercial Business, wrote: "Customers have told us E5 alone is no longer enough; they do not want multiple tools stitched together, they want one trusted solution." We asked Microsoft if it could provide evidence for Althoff's assertion, but it has yet to respond. ®
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Microsoft Launches New $99 Per Month AI-Focused Software Bundle
Microsoft Corp. is launching a new bundle of workplace software with the aim of getting more people to use its artificial intelligence tools for the office. The E7 bundle will cost $99 per user per month -- a 65% price increase from Microsoft's previous flagship bundle. It will include a slew of widely used tools such as Word and Excel as well as the company's Copilot AI assistant and a feature that lets administrators assess how AI is being used within their company. Demand for Microsoft's AI tools prompted the new bundle's introduction, said Jared Spataro, who oversees workplace applications. "If we can put that together for customers, it makes it easier for them to purchase and deploy and makes it much easier for us to sell." Microsoft said in January that more than 450 million business users pay for its office tools. Still, only about 3% of them are also paying for Copilot, the company's business-focused answer to ChatGPT. Compliance and security concerns are frequently cited as roadblocks to implementing workplace AI. In November, Microsoft unveiled a tool that helps customers monitor and manage how the technology is being used. Inclusion of this tool, dubbed Agent 365, is a major selling point of the new software package, Spataro said. The E7 bundle is cheaper than buying each tool separately, Microsoft said. Bundling a wide array of software has been key to Microsoft's success in persuading businesses to standardize on its products. It has been more than a decade since the company announced its last flagship bundle, dubbed E5.
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Microsoft adds higher-priced Office tier with Copilot as it tries to juice sales with AI
The new top-of-the-line bundle for corporate workers, Microsoft 365 E7, will cost $99 per user, per month, compared with $60 for the E5 subscription, after upcoming price hikes. E7 includes the $30 Copilot, $12 Entra identity tools and the new $15 Agent 365 product for managing companies' AI agents. Microsoft has sunk more than $100 billion in the past year into data center infrastructure, including Nvidia chips that can power AI models. Selling AI offerings is one way to show a return on that investment. For customers that pay for E7 or the stand-alone Copilot, Microsoft is introducing Copilot Cowork, stemming from a partnership with AI model developer Anthropic. It will handle tasks with multiple steps, such as sending regularly scheduled emails to colleagues and preparing for meetings with documents and internal calls. Copilot Cowork will become available as a research preview this month to clients enrolled in Microsoft's Frontier program, which provides early access to AI features. The launch comes after updates to Anthropic's Claude Cowork service made some investors worry about AI models posing competitive threats to mature software companies. The Copilot upgrades and the launch of the E7 tier on May 1 should both lead to further adoption of Copilot, Judson Althoff, CEO of Microsoft's commercial business, told CNBC in an interview. The existence of E7 should also inspire organizations to upgrade more workers to E5, he said. "The majority of our base is E5 now, right?" he said. "And then we're going through healthy renewal cycles on E5 right now. But E5 was created pre the agentic world."
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Microsoft 365 confirms new premium tier focused on AI and productivity
* Copilot Cowork is Microsoft's comprehensive autonomous AI assistant * Anthropic models also available alongside OpenAI's in Copilot * Agent 365, available soon, bundled into brand-new E7 plan Microsoft has confirmed details of Microsoft 365 Copilot's so-called 'third wave' shortly after rumors started circulating about a potential M365 E7 plan. The company says this wave three has pushed AI past just simple assistance to completing tasks and executing workflows on behalf of users - in other words, it marks the shift from generative AI to agentic AI. And despite a long-standing relationship with OpenAI and a heavy early reliance on GPT models, Copilot Cowork uses Anthopic models from the similarly named Claude Cowork. Microsoft 365 goes all-in on agentic AI With the Anthropic-backed upgrade, M365 Copilot will be able to manage long-running, multi-step tasks that develop over time, making the AI far more akin to a human worker. The tool works by coordinating actions across apps and files for further context. A separate post by Business Apps and Agents President, Charles Lamanna, shows agents working to clean up calendars and conducting detailed research. A video presented by Lamanna shared on LinkedIn also details how Copilot Cowork supports extra skills and plug-ins. Anthropic's Claude models will also be available within M365 Copilot Chat alongside the usual OpenAI models for more customization, should enterprises want that. Microsoft boasted that, while Copilot users have grown 160% year-over-year, actual daily active users are up ten times, highlighting the need for better management. For agent management, Microsoft is planning to make Agent 365 generally available from May 1, priced at $15 pe per month. The company drew parallels between A365 and existing people management tools in terms of observability, governance, management and security. "In just two months, tens of millions of agents have appeared in the Agent 365 Registry," Microsoft Commercial CEO Judson Althoff wrote about the platform's preview customers. And as for that rumored E7 plan? Well it's coming with that exact naming structure, and it will cost $99 per user, which is cheaper than piecing each element together separately. The E7 plan, as previously speculated, comprises M365 E5, M365 Copilot and A365 all in one billing subscription. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button! And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.
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Microsoft introduces Microsoft 365 E7 subscription with expanded AI features - SiliconANGLE
Microsoft introduces Microsoft 365 E7 subscription with expanded AI features Microsoft Corp. today introduced a new subscription that bundles its productivity applications with artificial intelligence and cybersecurity features. The Microsoft 365 E7 plan, as the offering is called, is priced at $99 per user per month. It's mainly geared towards large organizations. E7 includes a heavily upgraded version of Microsoft 365 Copilot, the AI assistant built into Microsoft 365, and an administrator tool called Microsoft Agent 365. When a worker asks the new Copilot to perform a multi-step task, it starts by generating an action plan. Users can modify the plan before the AI starts working. From there, they can monitor Copilot and individually approve each step before it proceeds to the next one. Under the hood, the new Copilot is powered by OpenAI Group PBC's latest AI models. It also uses the technology that underpins Anthropic PBC's Claude Cowork productivity tool. The latter offering extends the standard version of Claude with features that enable it to automate more complex chores. Copilot retrieves the information that it uses to perform tasks with the help of a data management engine called Work IQ. According to Microsoft, the engine tailors the AI assistant's output to each user's work habits. Customers can also customize it manually by entering a natural language description of their preferences. Microsoft is integrating Copilot into two more of its products as part of the update: Dynamics 365 and Power Apps. The former offering is an application suite that covers a long list of use cases ranging from supply chain management to customer service. Power Apps, in turn, is a low-code tool that enables workers to create their own business applications. The integration will make Copilot accessible in the two products' interfaces. Additionally, it will enable Copilot to incorporate information from Dynamics 365 and Power Apps into prompt responses. The latter feature is powered by its Work IQ data management engine. Microsoft will make it possible to integrate Work IQ into third-party services via an application programming interface set to roll out later this month. The company sees developers using data from the API to power custom AI agents. "Work IQ API exposes Copilot intelligence through a standard RESTful interface, enabling developers to build agents grounded in the live work context accessible through Copilot Chat - while inheriting Microsoft's enterprise‑grade identity, security, permissions, and regulatory compliance," Seth Patton, the general manager of Microsoft 365 product marketing, wrote in a blog post. Administrators can manage their companies' AI agents using a new tool called Agent 360 that is also included in the E7 subscription. According to Microsoft, the tool automatically creates an inventory of the agents used throughout an organization. It then collects data about adoption rates, potential cybersecurity risks and infrastructure usage.
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Microsoft Unveils $99 'Frontier' AI Subscription - Will This Turn Office Into An Autonomous Work Machine? - Microsoft (NASDAQ:MSFT)
Microsoft Launches Premium AI-Powered Office Tier Microsoft plans to launch a new premium subscription, Microsoft 365 E7, priced at $99 per user per month, up from $60 for the E5 plan after upcoming price increases. The E7 package will include the $30 Copilot AI tool, $12 Entra identity services, and a new $15 Agent 365 product designed to manage companies' AI agents, CNBC reported on Monday. The company has invested more than $100 billion over the past year in data center infrastructure, including Nvidia chips used to run AI models, and is now looking to generate returns through its AI products. New AI Tools And Growing Enterprise Adoption Microsoft will also introduce Copilot Cowork, developed in partnership with the AI company Anthropic. The tool can perform multi-step tasks such as sending scheduled emails and preparing meeting materials using internal documents and calls. Microsoft will release Copilot Cowork as a research preview this month to clients in its Frontier program, which provides early access to AI features. The company said the E7 launch and Copilot updates, scheduled for May 1, are expected to drive wider adoption of Copilot among enterprise customers. Microsoft 365 commercial products and cloud services accounted for 30% of total revenue in the December quarter, while the number of commercial subscription seats grew 6% in the latest quarter. CEO Satya Nadella said in January that Microsoft had 15 million paid Microsoft 365 Copilot seats, representing about 3% of commercial Microsoft 365 subscriptions. Analysts See Opportunity In AI-Driven Growth Microsoft stock has fallen more than 16% year to date as investors question the scale of the company's spending on AI data centers. Over the same period, the NASDAQ Composite Index declined nearly 2%. Wedbush Securities analyst Dan Ives said the recent pullback in major technology stocks presents a strong buying opportunity, highlighting Microsoft as a key beneficiary of the AI boom. Speaking with Schwab Network, Ives said the market is undervaluing the long-term growth potential of AI integration in enterprise software, describing the stocks as selling at "garage sale prices." Ives said the industry is moving beyond the hype stage as companies begin generating real revenue from AI products. The analyst pointed to Microsoft's Azure platform as an example of how AI monetization is gaining momentum. He added that enterprise spending on AI continues to accelerate, with Microsoft strengthening its position in cloud computing through its partnership with OpenAI. Ives said current valuation dips could offer a strategic entry point for investors ahead of the next phase of the AI-driven bull market. MSFT Price Action: Microsoft shares were down 0.71% at $406.52 at the time of publication on Tuesday, according to Benzinga Pro data. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.
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Microsoft Unveils AI-Centric $99-Per-User Software Bundle | PYMNTS.com
The company's E7 bundle, announced Monday (March 9), will become available May 1 and cost $99 per user each month. It combines Microsoft 365 E5, Microsoft 365 Copilot and Agent 365 into a one solution powered by Microsoft's Work IQ intelligence layer. Writing on the company blog, Microsoft Commercial Business CEO Judson Althoff described the launch as part of what he dubbed "Frontier Transformation," or the joining of AI and human ambition to help companies reach their highest goals. "It is the next evolution of AI Transformation -- not only do we need to deliver efficiency and productivity, but we need to democratize intelligence and do more for humanity," "Althoff wrote. "Companies do not want or need more AI experimentation. They need AI that delivers real business outcomes and growth." May 1 also marks the general availability of Microsoft Agent 365, which Althoff called "the control-plane for AI agents." Priced at $15 per user, the tool is designed to offer IT and security leads a place to observe, govern, manage and secure agents across the organization, with the same infrastructure, applications and protections they use to manage workers. PYMNTS examined Agent 365 last month in a report on some of the measures companies are taking to supervise agentic AI. "These tools reflect a broader recognition: autonomous systems require lifecycle management. They must be onboarded, evaluated, recalibrated and, in some cases, decommissioned. Treating them as unmanaged scripts is no longer viable," PYMNTS wrote. "As AI agents become embedded in core workflows, companies are effectively building a digital workforce. And every workforce, human or otherwise, requires management." This is happening as businesses are growing more focused in their vision for AI usage, as PYMNTS Intelligence research has shown. Many product leaders now see the technology as a way to tighten oversight, strengthen compliance and reduce operational friction, in addition to serving as a tool for automation and creativity. "That is a big change from a year earlier, when expectations were meaningfully lower and many organizations were still deciding whether the technology belonged beyond pilot projects," PYMNTS wrote last week. The research -- found in the report "From Experiment to Imperative: US Product Leaders Bet on Gen AI" -- shows that 98% of product leaders expect the technology to improve internal workflows within three years, up from 70% two years ago.
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Microsoft confirmed its new premium tier Microsoft 365 E7 will launch May 1 at $99 per user per month, marking a 65% jump from E5. The AI-focused software bundle includes Copilot, Agent 365 for managing AI agents, and enterprise security tools. But Gartner questions the value, noting only a 13.2% discount versus buying components separately.
Microsoft has officially confirmed that Microsoft 365 E7, its new premium tier designed for the AI era, will debut on May 1 at $99 per user per month
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. The higher-priced Office tier represents a 65% increase from the current flagship E5 subscription, which costs $60 per user per month after upcoming price hikes3
. Dubbed "the First Frontier Suite" by Microsoft, this AI-focused software bundle combines Microsoft 365 E5 with Microsoft 365 Copilot, Agent 365, Entra identity tools, advanced Defender, and Purview into a single enterprise license1
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Source: The Register
The move comes as Microsoft seeks to recoup its massive investment in AI infrastructure, having sunk more than $100 billion in the past year into data center infrastructure, including Nvidia chips that power AI models
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. With more than 450 million business users paying for its office tools but only about 3% also paying for Copilot, the company faces pressure to accelerate adoption of its AI offerings2
.While Microsoft positions the subscription tier as cheaper than purchasing components à la carte, Gartner crunched the numbers and found the discount underwhelming at just 13.2%
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. The analyst firm noted that "bigger bundles should get bigger discounts" and pointed out that larger discounts were available when comparing Microsoft 365 E3 and E5 to their component parts1
.Gartner proved equally skeptical about Agent 365 itself, the $15 per user per month management platform for AI agents that becomes generally available May 1. The consultancy called it "a work in progress with limited net new functionality to justify its $15 pupm price point"
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. The firm advised that "Gartner believes organizations will find the value of ME7 to be questionable for the majority of knowledge workers today" and recommended against upgrading until Microsoft adds more value1
.For customers paying for E7 or stand-alone Copilot, Microsoft introduced Copilot Cowork, stemming from a partnership with Anthropic
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. This marks a shift from Microsoft's long-standing reliance on OpenAI models alone. Copilot Cowork handles multi-step tasks such as sending regularly scheduled emails and preparing for meetings with documents and internal calls3
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Source: SiliconANGLE
The productivity suite now allows the AI to manage long-running tasks that develop over time, coordinating actions across apps and files for additional context
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. When workers ask Copilot to perform complex chores, it generates an action plan that users can modify before the AI starts working, with the ability to approve each step individually5
.Related Stories
Compliance and cybersecurity concerns have frequently been cited as roadblocks to implementing workplace AI
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. Agent 365 addresses these issues by automatically creating an inventory of AI agents used throughout an organization, then collecting data about adoption rates, potential security risks, and infrastructure usage5
.Judson Althoff, CEO of Microsoft's Commercial Business, stated that "customers have told us E5 alone is no longer enough; they do not want multiple tools stitched together, they want one trusted solution"
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. Althoff told CNBC that the launch should inspire organizations to upgrade more workers to E5 as well, noting that "the majority of our base is E5 now" and that "E5 was created pre the agentic world"3
. Microsoft reported that Copilot users grew 160% year-over-year, while daily active users increased ten times4
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