Licensing updates for Microsoft Cloud products – May 2026

Microsoft has released the new Microsoft 365 E7 and Agent 365 licenses, updated Windows 365 Business SKUs, and extended the Windows 365 promotion by two months.

New licenses

Microsoft 365 E7

As introduced in March, Microsoft has released the new Microsoft 365 E7 license.
The license includes:

  • Microsoft 365 E5
    Microsoft 365 E5 is the existing foundation, including productivity apps, advanced compliance, and security (Defender and Purview). Features from Intune Suite are scheduled for July 2026.
  • Microsoft 365 Copilot (Premium)
    Microsoft 365 Copilot (Premium) is an AI assistant embedded across Microsoft 365 Copilot Chat, Microsoft 365 apps (Outlook, Word, Excel, PowerPoint, OneNote), Teams, SharePoint, OneDrive, Planner, Viva Engage, and other Microsoft 365 products.
  • Agent 365
    Agent 365 is a governance and control layer for AI agents. It integrates with Defender, Entra, and Purview to apply existing policies to individual agents, providing centralized visibility, access enforcement, and audit trails.
  • Microsoft Entra Suite
    Microsoft Entra Suite provides identity and network security beyond what E5’s Entra ID P2 already includes, supporting Zero Trust and a Secure Access Service Edge (SASE) framework.

The license is available in several SKUs, with and without Teams, including a SKU for orders of at least 500 seats under a 3-year contract. The product ID is CFQ7TTBZZR6H.

Microsoft 365 E7 (May 2026)
Microsoft 365 E7 (May 2026)

Agent 365

All Microsoft Cloud subscription customers receive basic capabilities at no extra cost, including agent identity, inventory visibility, basic usage insights, and core admin governance.
Premium capabilities, such as advanced analytics, governance policies, security posture management, threat detection, and data security controls, require an Agent 365 license.

Agent 365 covers both first-party Microsoft agents and third-party ecosystem agents.
Core capabilities such as the agent registry and admin governance apply broadly across all agent types. Premium capabilities may vary depending on agent type or integration depth. External agents can be synced into the registry to extend governance coverage beyond the Microsoft platform.

Agent 365 is licensed per user, not per agent.
A single license covers all agents a user interacts with, manages, or sponsors. Licensing should cover all such users to ensure consistent governance; it is strictly required only for users accessing premium capabilities. Unlicensed users are not entitled to Agent 365 protections, creating a compliance gap.

The product ID is CFQ7TTBZZR6G.

More information:

Agent 365 (May 2026)
Agent 365 (May 2026)

Updated licenses

Windows 365 Business

As announced in April, Microsoft has reduced pricing by 20% for new orders and renewals, and implemented a new one-hour hibernation setup for unused Windows 365 Business Cloud PCs. The Windows 365 promotional offer is also 20% off the reduced price, extended until 30 June 2026. The product ID is CFQ7TTC0J203.

Old prices: 18 April 2026 | New prices: 1 May 2026 | Currency: CHF | P1YY: Yearly payment with yearly commitment

SKU

Old P1YY (CHF)

New P1YY (CHF)

Change (CHF)

Change %

Windows 365 Business 2 vCPU, 4 GB, 64 GB

302.40

241.92

-60.48

-20.0%

Windows 365 Business 2 vCPU, 4 GB, 128 GB

330.48

264.60

-65.88

-19.9%

Windows 365 Business 2 vCPU, 4 GB, 256 GB

415.80

332.64

-83.16

-20.0%

Windows 365 Business 2 vCPU, 8 GB, 128 GB

425.52

340.20

-85.32

-20.1%

Windows 365 Business 2 vCPU, 8 GB, 256 GB

509.76

408.24

-101.52

-19.9%

Windows 365 Business 4 vCPU, 16 GB, 128 GB

660.96

529.20

-131.76

-19.9%

Windows 365 Business 4 vCPU, 16 GB, 256 GB

746.28

597.24

-149.04

-20.0%

Windows 365 Business 4 vCPU, 16 GB, 512 GB

991.44

793.80

-197.64

-19.9%

Windows 365 Business 8 vCPU, 32 GB, 128 GB

1,199.88

960.12

-239.76

-20.0%

Windows 365 Business 8 vCPU, 32 GB, 256 GB

1,285.20

1,028.16

-257.04

-20.0%

Windows 365 Business 8 vCPU, 32 GB, 512 GB

1,530.36

1,224.72

-305.64

-20.0%

Windows 365 Business 16 vCPU, 64 GB, 512 GB

2,654.64

2,123.28

-531.36

-20.0%

Windows 365 Business 16 vCPU, 64 GB, 1 TB

3,013.20

2,410.56

-602.64

-20.0%

Dragon Copilot

Microsoft has reduced the price of Dragon Copilot, an AI assistant for healthcare and clinical workflows. The product ID is CFQ7TTC11MM7.
Dragon Copilot is available in the United States, Canada, Ireland, the United Kingdom, Austria, Germany, France, the Netherlands, Belgium, and Switzerland.

As part of this change, the Dragon Copilot Physician Practice offer will reach end of sale on May 1. Customers will now have access to the full set of Dragon Copilot enterprise capabilities through the standard per‑user license at the new price point.

Additionally, beginning on May 1, Dragon Copilot will introduce a simplified consumption model for ambient encounters and generative AI capabilities. Consumption fees will now be applied per encounter, rather than per individual ambient note or generative AI action—making usage easier to understand and manage.
Dragon Copilot (May 2026)
Dragon Copilot (May 2026)

Unsupported license

Windows 365 Business with Windows Hybrid Benefit

Microsoft has discontinued the Windows 365 Business Cloud PC with Hybrid Benefit and will no longer provide support to customers. The product ID was CFQ7TTC0HX99.


Microsoft Cloud Promotions

My updates to promotional offers.

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About the Author

Tobias Asböck

Tobias Asböck

Tobias is a Senior System Engineer with more than 10 years of professional experience with Microsoft 365 products such as SharePoint Online, OneDrive for Business, Teams Collaboration, Entra ID, Information Protection, Universal Print, and Microsoft 365 Licensing. He also has 15+ years of experience planning, administering, and operating SharePoint Server environments. In his spare time, Tobias is busy with updates in the Microsoft 365 world or on the road with his road bike and other sports activities. If you have additional questions, please contact me via LinkedIn or support@topedia.com.

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