Prime Highlights
- Microsoft has introduced Microsoft 365 E7, a new premium productivity suite priced at $99 per user per month, aimed at companies expanding the use of AI in the workplace.
- The bundle includes Microsoft Copilot, identity security tools from Microsoft Entra, and a new AI-agent management service called Agent 365.
Key Facts
- Microsoft has invested over $100 billion in the past year to build AI infrastructure, including data centers and advanced chips from Nvidia.
- The company has reached about 15 million paid seats for Microsoft Copilot among enterprise users, according to CEO Satya Nadella.
Background
Microsoft has introduced a new premium version of its Office productivity suite that includes advanced artificial intelligence features. The new plan, Microsoft 365 E7, will cost $99 per user each month and is designed for corporate customers looking to expand their use of AI tools at work.
The E7 bundle includes the company’s AI assistant, Microsoft Copilot, along with identity security tools from Microsoft Entra and a new service called Agent 365, which helps organizations manage AI agents used in daily tasks. The price is about 65% higher than the current E5 subscription, which costs around $60 per user per month after the upcoming price changes.
Microsoft is pushing AI services as it tries to recover large investments in infrastructure. The company has spent more than $100 billion over the past year building data centers and buying powerful chips from Nvidia to run AI models.
The company is also introducing a new tool called Copilot Cowork. It built the feature with AI startup Anthropic. The tool can handle multi-step tasks, such as creating meeting summaries or sending scheduled updates to coworkers. Microsoft plans to release the feature this month as a research preview for organizations enrolled in its Frontier program.
Microsoft said expanding AI within its productivity tools remains a key growth strategy. Commercial Microsoft 365 products and cloud services accounted for about 30% of the company’s revenue in the December quarter.
Earlier this year, CEO Satya Nadella said the company had reached about 15 million paid Copilot seats among its enterprise users.
Industry analysts say the inclusion of security, identity management, and AI tools in one package may make the new offering more attractive to large organizations looking for a single platform to manage workplace AI systems.