Microsoft 365 E5 includes a substantial set of identity, security, compliance, and threat-protection capabilities. E7 extends that foundation with additional capabilities for identity governance, Zero Trust network access, and AI-agent security. Yet many organizations with E5 or E7 use only a fraction of the capabilities already included in their licenses.
That leaves part of the security investment sitting unused. The challenge is rarely a lack of technology. It’s knowing what’s included, what’s been deployed, and the dependencies between entitlement and effective protection.
This article looks at where that gap typically exists, how to measure it in your tenant, which capabilities to prioritize, and how to turn the licenses you already pay for into measurable security improvements.
Why E5 and E7 Security Capabilities Go Unused
Having a capability included in a license does not mean it is in use — turning it into effective protection requires the right ownership, planning, configuration, and adoption.
Five patterns appear repeatedly in enterprise environments:
- The license was purchased for another reason, like Copilot, Teams, compliance requirements, or a renewal, so the security capabilities arrived without a corresponding program, owner, or implementation budget.
- The buyer is not the deployer: Procurement and IT make the licensing decision, while identity and security teams handle implementation, often with little involvement in that decision and no capacity allocated to deployment.
- Every meaningful capability requires more than a switch: Policy design, pilot groups, exceptions, communications, testing, and rollback plans all take time. A feature can be available today and still need a substantial project before it is safe to deploy at scale.
- Microsoft continuously adds new capabilities, and keeping up requires ongoing time, budget, and effort to evaluate what is relevant for the organization.
- The entitlement-to-deployment gap has no clear owner: License counts are usually reported; deployment coverage by capability often is not, so the gap stays invisible until someone goes looking for it.
These patterns explain why activation is not always straightforward, but the capabilities themselves provide a strong foundation for improving security, identity, and access management once applied to the right use cases.
The E5 and E7 Security Capabilities
Microsoft 365 E5 and E7 include a broad range of security and identity capabilities that can deliver significant value for organizations. The following overview provides a selection of the most relevant capabilities and the benefits they can provide.
| Capability | What it does | Where the entitlement sits |
|---|---|---|
| Identity governance | ||
| Microsoft Entra ID GovernanceEntitlement management, access reviews, lifecycle workflows, and Privileged Identity Management | Automates joiner, mover, and leaver processes, periodically recertifies access, and places privileged roles behind just-in-time approval rather than permanent standing access. | Microsoft 365 E5 includes Microsoft Entra ID P2, covering PIM and selected Access Reviews and Entitlement Management capabilities. Microsoft 365 E7 adds the full Microsoft Entra ID Governance portfolio through Microsoft Entra Suite, including Lifecycle Workflows and advanced governance capabilities. |
| Zero Trust network access | ||
| Global Secure AccessIncluding Microsoft Entra Private Access and Microsoft Entra Internet Access | Provides Conditional Access-driven access to private and on-premises applications at the application level rather than granting broad network access through a traditional VPN. | Microsoft 365 E5 includes access to the Global Secure Access Microsoft traffic profile through Entra ID P2. Microsoft 365 E7 adds the full Microsoft Entra Internet Access and Microsoft Entra Private Access capabilities through Microsoft Entra Suite. |
| Conditional Access and identity protection | ||
| Conditional Access and Identity Protection | Uses identity, device and risk signals to block access or require stronger authentication. | Risk-based user and sign-in policies require Entra ID P2 and are included in Microsoft 365 E5 and E7. |
| Passwordless authentication and passkeys | Reduces reliance on passwords by enabling phishing-resistant authentication methods. | Passkeys are available across Microsoft Entra ID editions, although Conditional Access policies used to enforce them may require Entra ID P1 or P2. |
| AI-era security | ||
| Security Copilot | Applies AI to security operations and provides a monthly Security Compute Unit allocation as part of the entitlement. | Included in E5 and E7. |
| Microsoft Entra Agent ID | Provides the identity and authorization foundation for AI agents. | Generally available since April 2026, although several capabilities remain in preview. |
| Microsoft Agent 365 | Extends Microsoft Entra security and governance controls to agents. | Included in Microsoft 365 E7 or available separately for eligible Microsoft 365 plans. |
The licensing boundaries deserve attention: not every capability in Microsoft’s broader security and identity portfolio is included in every E5 or E7 configuration, and existing add-ons or agreements can affect what is actually available.
For a detailed breakdown of the P1, P2, and Entra Suite boundaries, see our post on Entra licensing.
What to Consider When Activating E5 and E7 Capabilities
The goal is not to activate as many features as possible, but to identify the capabilities that address meaningful security needs and can be adopted successfully in the environment.
Five considerations can help shape that approach.
1. Start with the biggest security gap
Don’t prioritize based on what can be switched on fastest. Look at where the organization has the greatest exposure and which E5/E7 capability can address it.
2. Look for quick wins
Some capabilities can deliver value relatively quickly, particularly where the required identity, device, and policy foundations are already in place. These are good candidates for early wins, while more complex capabilities can follow as part of a broader roadmap.
3. Check the dependencies first
A capability may be included in the license but still depend on other technical or organizational foundations. Identity data quality, device management, application compatibility, ownership models, and existing policies can all determine how quickly a capability can be deployed.
4. Give someone ownership
If nobody owns E5/E7 adoption, the gap will remain. Assign responsibility not just for deployment, but for continuously reviewing which capabilities are relevant as Microsoft evolves the platform.
5. Build adoption into the normal security roadmap
You don’t need to evaluate every new feature Microsoft introduces immediately. Establish a regular review cycle to assess relevant capabilities, prioritize them against current risks and projects, and incorporate the valuable ones into the security roadmap.
Microsoft Funding for Adoption
The barrier is often not licensing. It is the effort required to turn entitlement into adoption. That is what Microsoft’s Frontier Accelerate Program is aimed at.
Depending on customer eligibility and engagement scope, Microsoft programs may help support the assessment, deployment or adoption of selected capabilities. Availability and funding should be confirmed with the customer’s Microsoft account team or qualified partner.
iC Consult can prepare and register the engagement with Microsoft where the program applies, addressing the budget question alongside the technical one.
iC Consult: Your Expert Partner for Microsoft Entra
Microsoft has the technology. iC Consult knows how to make it work in complex enterprise identity environments.
Our Frontier (E7) Adoption Accelerator is built for exactly the gap this article describes. In a 15-day engagement we map your E5 and E7 entitlements against the security capability you are not yet using, validate the highest-impact workloads with a working proof of concept, and hand over a prioritized adoption plan across identity governance, Zero Trust network access and AI-era security.
Learn more about the offering as well as our other engagements in the areas of Zero Trust, AI Agent Governance & Security, Entra ID Governance and Entra External ID.
As a Microsoft Solutions Partner for Security and Modern Work, with an Advanced Specialization in Identity and Access Management, we work closely with Microsoft’s product teams to deliver solutions that work in your environment.
With more than 130 specialists across the Microsoft ecosystem and a dedicated focus on identity security, we bring the expertise and Microsoft partnership needed to make it work for you.
Ready to activate what you already own?
Talk to iC Consult about your E5 or E7 adoption journey and discover where the biggest opportunities are in your environment.
