Forestal Security — Founder-Led Security for Small Business
Senior-level security.
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CISSP · CISM · CEH · SecurityX certified · Kokomo, Indiana
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Small and medium sized organizations are under attack
And most don't even know it.
Cybercriminals don't just go after big corporations. In fact, 43% of all cyberattacks target small and medium sized organizations (SMOs)—yet most lack the resources, expertise or time to protect themselves or even check their cyber security rating.
82% of ransomware attacks involve companies with fewer than 1,000 employees.
94% of assessed SMOs do not follow baseline cybersecurity practices, putting them at significant risk to ransomware and phishing attacks.
87% of small businesses have customer data that could be compromised in an attack.
SMOs without a cybersecurity program in place experience 24 days of downtime (on average) due to a cybersecurity incident.
Who We Are?
Your Partner in Cybersecurity & IT Support
At Forestal Security, we help businesses protect their data, secure networks, and stay ahead of cyber threats with expert penetration testing, threat detection, and compliance solutions.
- Offensive Security Specialists: Experts in ethical hacking, penetration testing, and security consulting.
- Customized Security Strategies Solutions designed to fit your business’s unique security needs.
- Proactive Threat Hunting: Identifying and eliminating cyber threats before they cause harm.
- Trusted Security Partner: Helping businesses navigate the complex world of cybersecurity.
Key Cybersecurity Statistics and Trends
Cyber threats are escalating with data theft, cloud breaches, and AI-driven attacks costing $4.54 million per ransomware incident, while global cybercrime costs will reach $10.5+ trillion annually
Average Cost of a Ransomware Attack
Percentage of SMB W/o a Cyber attack Plan
Percentage of Malware delivered via email
Professional IT & Cybersecurity Consulting Company For all Your Data Protection Needs
Cybersecurity Firm to Enhance Your Microsoft 365 Defenses
Microsoft 365 consulting services and cloud security management
Microsoft 365 is no longer just email and Office apps. It's now the operating system for how businesses communicate, collaborate, secure data, manage devices, and — with Copilot and Agent 365 — run AI-powered workflows. With over 430 million users and 90% of Fortune 500 companies on the platform, M365 has become the single largest attack surface and the single largest productivity investment for most organizations.
That complexity is exactly why Microsoft 365 consulting services matter. Between 15+ license tiers, the brand-new E7 "Frontier Suite" launching May 2026, price increases hitting July 2026, and security features most organizations don't even know they're paying for — the gap between what you own and what you actually use is costing you money and leaving you exposed.
This guide breaks down every Microsoft 365 product, every license type, the new E7, the 2026 pricing changes, and how the right consulting partner turns all of it into a competitive advantage instead of a budget drain.
Every Microsoft 365 License Type Explained
Microsoft 365 licensing is deliberately complex — and that complexity is how organizations end up overpaying or under-protected. Here's the complete breakdown of every license tier, what's included, and the July 2026 pricing.
📋 Complete Microsoft 365 License & Pricing Guide — 2026
All M365 plans with July 2026 pricing, key products included, and audience fit.
| License | Audience | Price (User/Mo) | What's Included | Best For |
|---|---|---|---|---|
| Small & Mid-Size Business Plans (up to 300 users) | ||||
| Microsoft 365 Business Basic | SMB | $6 $7 | Web/mobile Office apps, Exchange Online (50 GB), Teams, SharePoint, OneDrive (1 TB), Copilot Chat (baseline). | Small businesses needing cloud email and collaboration basics. |
| Microsoft 365 Business Standard | SMB | $12.50 $14 | Everything in Basic + desktop Office apps (Word, Excel, PowerPoint, Outlook, Access, Publisher), Bookings, Clipchamp, Loop. | SMBs that need full desktop Office apps and webinar capabilities. |
| Microsoft 365 Business Premium | SMB | $22 (unchanged) | Everything in Standard + Intune device management, Defender for Business, Entra ID P1, Conditional Access, Azure Information Protection P1, Purview DLP. | Security-conscious SMBs needing device management and advanced threat protection. Best value in the M365 portfolio. |
| Microsoft 365 Apps for Business | SMB | $13.75 | Desktop and mobile Office apps + OneDrive (1 TB). No Exchange, no Teams, no security features. | Businesses that only need Office apps and cloud storage — no email or collaboration. |
| Enterprise Plans (unlimited users) | ||||
| Office 365 E1 | Enterprise | $10 (unchanged) | Web/mobile Office apps, Exchange Online (50 GB), Teams, SharePoint, OneDrive (1 TB), Viva Engage. | Enterprise basic collaboration without desktop apps. |
| Office 365 E3 | Enterprise | $23 $26 | Everything in E1 + desktop Office apps, Exchange Online (100 GB), Purview eDiscovery, DLP, Azure Information Protection P1, Defender for Office P1 (new in 2026). | Enterprise standard — most widely deployed enterprise tier. |
| Microsoft 365 E3 | Enterprise | $36 $39 | Everything in Office 365 E3 + Windows 11 Enterprise, Entra ID P1, Intune P1, Intune Remote Help, Intune Advanced Analytics, Intune P2 (new 2026), Defender for Office P1, Copilot Chat (baseline). | Enterprise standard with device management, Windows licensing, and identity protection. |
| Microsoft 365 E5 | Enterprise | $57 $60 | Everything in M365 E3 + Defender for Office P2, Defender for Endpoint, Defender for Identity, Defender for Cloud Apps, Entra ID P2, Purview full suite (Insider Risk, Communication Compliance, eDiscovery Premium, Customer Lockbox, PAM), Power BI Pro, Phone System, Audio Conferencing, Security Copilot agents (new 2026), Intune EPM, Cloud PKI. | Full security, compliance, and analytics. The current top tier — required for regulated industries and zero-trust environments. |
| Microsoft 365 E7 NEW — May 2026 | Enterprise | $99 | Everything in M365 E5 + Microsoft 365 Copilot (full), Agent 365 (AI agent governance, identity, compliance), Entra Suite (full), advanced Defender/Intune/Purview capabilities. Available with or without Teams. | AI-forward enterprises deploying Copilot and AI agents at scale. The "Frontier Suite." |
| Microsoft 365 Apps for Enterprise | Enterprise | $13.75 | Desktop and mobile Office apps + OneDrive (1 TB). No Exchange, Teams, or security. Enterprise version of Apps for Business. | Large orgs that license email/collaboration separately and only need Office apps. |
| Frontline Worker Plans | ||||
| Microsoft 365 F1 | Frontline | $2.25 $3 | Web/mobile Office apps, Teams, SharePoint, Viva Engage, Viva Learning. No Exchange mailbox (Kiosk only). Limited OneDrive (2 GB). | Shift workers, retail, manufacturing — communication and training only. |
| Microsoft 365 F3 | Frontline | $8 $10 | Everything in F1 + Exchange Online Kiosk (2 GB), Windows 11 Enterprise, Intune, Defender for Business, Entra ID P1. | Frontline workers who need email, device management, and basic security. |
| Key Add-Ons & Standalone Products | ||||
| Microsoft 365 Copilot | Add-on | $30 | Full AI assistant in Word, Excel, PowerPoint, Outlook, Teams. Reasoning models, Agent Mode, Copilot Pages. Requires M365 E3/E5 or Business Standard/Premium base license. | Knowledge workers leveraging AI for content creation, analysis, and workflow automation. |
| Agent 365 | NEW — May 2026 | $15 | AI agent governance control plane. Register, provision, secure, monitor, and govern AI agents across Entra, Purview, and Defender XDR. Treats agents like digital employees. | Organizations deploying autonomous AI agents that need identity, compliance, and security governance. |
| Microsoft Entra Suite | Add-on | $12 | Entra Internet Access, Entra Private Access, Entra ID Governance, Entra ID Protection (P2). Zero Trust network access and identity governance beyond what's in E5. | Organizations implementing full Zero Trust architecture with identity-centric access. |
| Enterprise Mobility + Security (EMS) E3 | Add-on | $10.60 | Entra ID P1, Intune P1, Azure Information Protection P1, Microsoft Defender for Cloud Apps (discovery only). | Add identity/device management to Office 365 plans that lack it. |
| Enterprise Mobility + Security (EMS) E5 | Add-on | $16.40 | Everything in EMS E3 + Entra ID P2, Defender for Identity, Defender for Cloud Apps (full), Azure Information Protection P2. | Add advanced identity protection and CASB capabilities to existing M365 plans. |
The Microsoft 365 Product Ecosystem
When people say "Microsoft 365," they usually mean Outlook and Word. But the platform now includes over 30 distinct products spanning productivity, security, identity, compliance, device management, and AI. Understanding what you actually have access to — and what's going unused — is fundamental to getting value from your M365 investment.
Productivity & Collaboration Apps
| Product | What It Does | Included In |
|---|---|---|
| Microsoft Word | Document creation and editing with Copilot AI integration | All plans (web/mobile in Basic; desktop in Standard+) |
| Microsoft Excel | Spreadsheets, data analysis, Power Query, Copilot-assisted formulas | All plans (web/mobile in Basic; desktop in Standard+) |
| Microsoft PowerPoint | Presentations with Designer AI and Copilot slide generation | All plans (web/mobile in Basic; desktop in Standard+) |
| Microsoft Outlook | Email client with calendar, contacts, and Copilot email drafting | All plans with Exchange Online |
| Microsoft Teams | Chat, video meetings, channels, phone system (E5), and app integrations | All plans (sold with or without Teams) |
| Microsoft OneNote | Digital notebook for notes, research, and meeting records | All plans with desktop apps |
| Microsoft Access | Desktop database application (Windows only) | Business Standard+, M365 Apps, E3+ |
| Microsoft Publisher | Desktop publishing for marketing materials (Windows only, being retired) | Business Standard+, M365 Apps, E3+ |
| SharePoint Online | Intranet, document management, team sites, content collaboration | All plans |
| OneDrive for Business | Cloud file storage and sync (1 TB per user standard) | All plans |
| Exchange Online | Enterprise email and calendaring (50 GB or 100 GB mailbox) | All plans except F1 and Apps-only |
| Microsoft Loop | Co-creation workspace with portable components across M365 apps | Business Standard+, E3+ |
| Microsoft Clipchamp | Video creation and editing tool | Business Standard+ |
| Microsoft Bookings | Appointment scheduling tool for customer-facing businesses | Business Standard+, E3+ |
| Microsoft Planner | Task management and project planning (merged with To Do) | All plans |
| Viva Engage (Yammer) | Enterprise social networking and community engagement | All plans (core features); Viva Suite for premium |
| Viva Learning | Employee learning and development hub | F1+, E3+ (core); Viva Suite for premium |
| Power BI Pro | Business intelligence dashboards and reporting | M365 E5, E7 |
Security, Identity & Compliance Products
| Product | What It Does | Included In |
|---|---|---|
| Microsoft Entra ID P1 | Conditional Access, MFA, self-service password reset, app proxy, group-based licensing | Business Premium, M365 E3+, EMS E3+ |
| Microsoft Entra ID P2 | Everything in P1 + risk-based Conditional Access, Privileged Identity Management (PIM), Identity Protection, access reviews | M365 E5, E7, EMS E5 |
| Microsoft Entra Suite | Internet Access, Private Access (ZTNA), ID Governance, full identity-centric Zero Trust | E7 (included); add-on for others at $12/user/mo |
| Microsoft Defender for Office 365 P1 | Safe Attachments, Safe Links, anti-phishing policies for email and collaboration | Business Premium, Office 365 E3 (new 2026), M365 E3+ |
| Microsoft Defender for Office 365 P2 | Everything in P1 + Threat Explorer, automated investigation and response, attack simulation | M365 E5, E7 |
| Microsoft Defender for Endpoint | Endpoint detection and response (EDR), threat and vulnerability management, automated remediation | M365 E5, E7 |
| Microsoft Defender for Identity | Monitors Active Directory signals to detect compromised identities and insider threats | M365 E5, E7, EMS E5 |
| Microsoft Defender for Cloud Apps | Cloud Access Security Broker (CASB) — shadow IT discovery, app governance, session controls | M365 E5, E7, EMS E5 |
| Microsoft Intune | Mobile device management (MDM), mobile application management (MAM), endpoint analytics | Business Premium (basic), M365 E3+ (full), F3 |
| Microsoft Purview | Compliance suite: DLP, sensitivity labels, retention policies, eDiscovery, audit, insider risk, communication compliance, information barriers, Customer Lockbox, Privileged Access Management | Basic DLP in E3; full suite in E5/E7 |
| Azure Information Protection | Document classification, labeling, and encryption for sensitive data | P1 in E3; P2 in E5/E7 |
| Security Copilot | AI-powered security analysis and investigation agents for Defender, Entra, Intune, and Purview | M365 E5 (new 2026), E7 |
AI & Agent Products
| Product | What It Does | Included In |
|---|---|---|
| Copilot Chat (baseline) | Secure AI chat within M365 apps — grounded in organizational data. Limited compared to full Copilot license. | All M365 plans (rolling out 2026) |
| Microsoft 365 Copilot (full) | Full AI assistant across Word, Excel, PowerPoint, Outlook, Teams. Reasoning models, Agent Mode, workflow automation, Copilot Pages. | E7 (included); $30/mo add-on for E3/E5 |
| Copilot Cowork | Multi-step, long-running AI task automation — prepares presentations, gathers data, sends emails, schedules meetings from a single request. Built with Anthropic. | E7 |
| Agent 365 | Unified governance control plane for AI agents — register, provision, secure, monitor, and govern agents using Entra, Purview, and Defender XDR. | E7 (included); $15/mo standalone |
| Copilot Studio | Build custom AI agents and automations for business processes. | Separate purchase (consumption-based) |
Microsoft 365 E7: The "Frontier Suite" Explained
On March 9, 2026, Microsoft officially announced Microsoft 365 E7 — the first new enterprise licensing tier since E5 launched in 2015. Branded "The Frontier Suite," E7 goes generally available on May 1, 2026 at $99 per user per month. It's Microsoft's most aggressive licensing move in over a decade, and it fundamentally changes how enterprises will buy and govern AI.
What's Actually in E7
E7 bundles three major components on top of everything already in E5:
Microsoft 365 Copilot (full license) — the $30/month AI assistant currently sold as an add-on. In E7, it's included by default with Wave 3 enhancements: deeper agentic capabilities where Copilot generates an action plan, lets users approve each step, and executes multi-step tasks across apps. Copilot Cowork — built in collaboration with Anthropic — handles long-running, multi-step processes from a single prompt.
Agent 365 — the brand-new component. This is NOT an agent builder (that's Copilot Studio). Agent 365 is a governance and security layer that lets organizations treat AI agents like digital employees — with identities in Entra, compliance policies in Purview, and security monitoring in Defender XDR. It's priced at $15/month standalone and is generally available May 1, 2026.
Microsoft Entra Suite — the full identity suite including Internet Access, Private Access (ZTNA replacement for traditional VPN), ID Governance, and ID Protection. This extends Zero Trust network access beyond what E5 provides and is normally a $12/month add-on.
The E7 Pricing Math
| Buying Separately | Per User/Month |
|---|---|
| Microsoft 365 E5 (after July 2026) | $60 |
| Microsoft 365 Copilot | $30 |
| Agent 365 | $15 |
| Entra Suite | $12 |
| Total à la carte | $117 |
| Microsoft 365 E7 bundle | $99 |
| Savings per user | $18/month (~15%) |
At 1,000 users, that's $216,000 per year in savings versus buying components separately. However, Gartner's independent analysis found the E7 bundle discount at just 13.2% — lower than the 14.5% discount E3 offers and the 16.4% discount E5 offers compared to their respective component parts. Larger bundles should arguably provide larger discounts, and they don't here.
The honest take: E7 makes financial sense only if every user in the license pool genuinely needs full Copilot, Agent 365 governance, and the Entra Suite. For most organizations, a mixed licensing approach — E5 for the security stack plus Copilot add-ons only for power users — will cost less. Microsoft has launched introductory promotions: 10% off for 10+ seats and 15% off for 100+ seats. Expect significant discounting as Copilot adoption (currently at only 3.3% of M365's 450 million users) remains well below Microsoft's targets.
July 2026 Pricing Changes: What's Increasing
Independent of E7, Microsoft announced broad price increases effective July 1, 2026 — the biggest adjustment since 2022. These increases apply to both new subscriptions and renewals after that date. If you're on an existing Enterprise Agreement or subscription, your current pricing holds until your next renewal.
| Plan | Current Price | July 2026 Price | Increase |
|---|---|---|---|
| Business Basic | $6 | $7 | +16.7% |
| Business Standard | $12.50 | $14 | +12% |
| Business Premium | $22 | $22 | Unchanged |
| Office 365 E1 | $10 | $10 | Unchanged |
| Office 365 E3 | $23 | $26 | +13% |
| Microsoft 365 E3 | $36 | $39 | +8.3% |
| Microsoft 365 E5 | $57 | $60 | +5.3% |
| Microsoft 365 F1 | $2.25 | $3 | +33% |
| Microsoft 365 F3 | $8 | $10 | +25% |
The pattern is clear: Microsoft is keeping premium tiers (E5, Business Premium) relatively protected while hitting lower tiers with double-digit increases. Frontline workers see the steepest percentage jumps. The strategic intent is to narrow the gap between lower and higher tiers, making the upgrade to E5 or E7 look increasingly attractive on a per-dollar basis.
Additionally, Microsoft removed Enterprise Agreement volume discounts (worth up to 12%) in November 2025, compounding the effective cost increase for large organizations.
Why Microsoft 365 Consulting Services Matter
With 15+ license tiers, dozens of security and compliance products, AI tools with separate consumption costs, and pricing changes that vary by renewal date — most organizations are either overspending, under-protected, or both. This is where specialized M365 consulting delivers measurable value:
License Optimization & Cost Reduction — A proper license audit typically reveals 15-30% waste from unused licenses, over-provisioned tiers (E5 assigned to users who only need E3 features), and orphaned licenses from departed employees. Before the July 2026 increases hit, right-sizing your tenant can offset the price changes entirely.
Security Configuration & Hardening — Most organizations use less than 20% of the security features they're already paying for in their M365 license. Conditional Access policies, Defender for Office 365, DLP rules, Purview sensitivity labels, and Intune device compliance — these are included but unconfigured in the vast majority of tenants. A security-focused M365 consultant activates the protection you already own.
Migration & Deployment — Whether you're migrating from on-premises Exchange, Google Workspace, or a legacy platform, M365 migrations involve DNS, mail flow, hybrid configuration, data migration, and user training. Botched migrations cause email outages, data loss, and user revolt.
Compliance & Governance — For regulated industries (banking, healthcare, government), M365 Purview provides the compliance tools — but configuring retention policies, legal holds, DLP rules, insider risk detection, and audit logging requires expertise in both the technology and the regulatory framework.
Copilot & AI Readiness — Deploying Copilot without proper data governance is a security incident waiting to happen. Copilot surfaces whatever the user has access to — which means over-permissioned SharePoint sites, legacy shared drives, and poorly labeled sensitive data all become AI-searchable. A consultant ensures your data hygiene, sensitivity labels, and access controls are ready before you flip the Copilot switch.
E7 & Renewal Strategy — With E7 launching May 1 and price increases hitting July 1, the next 90 days represent the most consequential renewal window in a decade. Whether to early-renew at current rates, adopt E7 with introductory discounts, or restructure your license mix entirely — these decisions have six- and seven-figure budget implications that warrant expert guidance.
What to Look for in a Microsoft 365 Consulting Partner
Not all M365 consultants are created equal. Here's what separates a partner who delivers value from one who just resells licenses:
| Criteria | What to Look For | Red Flags |
|---|---|---|
| Security Expertise | Hands-on experience with Entra ID, Conditional Access, Defender suite, Purview, Intune. Relevant certifications (AZ-500, SC-200, SC-300, MS-102). | Can only talk about email migration, not security configuration. |
| License Optimization | Conducts actual tenant audits, identifies waste, recommends right-sized tiers before upselling. | Pushes E5 or E7 for every user without analyzing actual usage. |
| Compliance Knowledge | Understands your regulatory framework (HIPAA, PCI-DSS, CMMC, SOX) and maps M365 Purview features to requirements. | Generic "we'll make you compliant" claims without specifics. |
| Copilot & AI Readiness | Focuses on data governance, sensitivity labeling, and access control remediation before deploying Copilot. | Deploys Copilot without addressing data hygiene first. |
| Vendor Independence | Recommends what's right for your organization, even if that means a lower-tier license. | Revenue model is entirely based on license resale margins. |
At Forestal Security, we bring a security-first approach to Microsoft 365 consulting. With hands-on certifications across AZ-500, SC-200, SC-300, and MS-102 — combined with years of operational security experience — we help organizations activate the security tools they already own, right-size their licenses before the July 2026 increases, and build Copilot-ready environments with proper data governance. Explore our M365 Security Assessment to see where your tenant stands today.
What is Microsoft 365?
Microsoft 365 is a cloud-based subscription platform that bundles Office productivity apps (Word, Excel, PowerPoint, Outlook, Teams), cloud services (Exchange Online, SharePoint, OneDrive), security tools (Defender, Entra ID, Purview), device management (Intune), and AI capabilities (Copilot) into unified license tiers.
What is the difference between Office 365 and Microsoft 365?
Office 365 plans include productivity apps and cloud services only. Microsoft 365 plans add Windows 11 Enterprise, advanced security (Entra ID, Intune, Defender), and compliance tools on top of the Office 365 foundation.
What is Microsoft 365 E7?
Microsoft 365 E7, branded "The Frontier Suite," is the new top-tier enterprise license launching May 1, 2026 at $99/user/month. It includes everything in E5 plus Microsoft 365 Copilot (full), Agent 365 (AI agent governance), and the complete Entra Suite.
What is Agent 365?
Agent 365 is a governance and security control plane for managing AI agents in an organization. It uses Entra for agent identity, Purview for compliance, and Defender XDR for security monitoring — treating AI agents like digital employees that need to be provisioned, monitored, and governed.
When do Microsoft 365 prices increase in 2026?
Microsoft 365 commercial pricing increases take effect July 1, 2026. Increases range from 5% to 33% depending on the plan, with lower-tier and frontline plans seeing the steepest percentage jumps. Business Premium and Office 365 E1 remain unchanged.
What is the best Microsoft 365 plan for small businesses?
Microsoft 365 Business Premium at $22/user/month is widely considered the best value in the M365 portfolio. It includes desktop Office apps, Teams, Exchange, Intune device management, Defender for Business, Entra ID P1, Conditional Access, and DLP — and its price is not increasing in July 2026.
What is Microsoft 365 Copilot?
Microsoft 365 Copilot is an AI assistant embedded in Word, Excel, PowerPoint, Outlook, and Teams. It uses large language models grounded in your organizational data to draft content, analyze data, summarize meetings, and automate workflows. It costs $30/user/month as an add-on or is included in E7.
Should I upgrade to E5 or E7?
E5 makes sense for organizations that need advanced security (Defender suite, Entra ID P2, full Purview compliance) even without AI tools. E7 only makes financial sense if the majority of your licensed users will actively use Copilot and you need Agent 365 governance. For most organizations, a mixed approach — E5 for security plus selective Copilot add-ons — is more cost-effective.
What Microsoft 365 security features are most organizations missing?
The most commonly unconfigured features are Conditional Access policies, Defender for Office 365 Safe Links and Safe Attachments, DLP policies, Purview sensitivity labels, Intune device compliance policies, and Entra ID sign-in risk policies. Most organizations pay for these features but never activate them.
How can I save money on Microsoft 365 before July 2026?
Conduct a license audit to eliminate unused or over-provisioned licenses. Early-renew before July 1, 2026 to lock current pricing. Evaluate whether Business Premium (unchanged pricing) covers your needs versus E3. Take advantage of Microsoft's current promotional discounts on Copilot bundles. Work with a licensing consultant to model 3-year TCO scenarios.