Microsoft 365 E3 and E5 Licensing: A Detailed Explanation

Microsoft 365 E3 and E5 Licensing: A Detailed Explanation

Microsoft 365 E3 and E5 are enterprise-grade licensing plans designed for organizations with over 300 users.1 They offer a comprehensive suite of productivity, security, and compliance tools, but cater to different needs and budgets.2

Key Differences:

The primary distinction between E3 and E5 lies in the level of security, compliance, and analytics features.3 While both include core productivity applications like Office apps, E5 provides advanced capabilities in the aforementioned areas.4

Microsoft 365 E3:

This plan focuses on essential productivity tools with core security features.5 It includes:

• Office Applications: Full versions of Word, Excel, PowerPoint, Outlook, and other Office apps.6

• Email and Calendar: Exchange Online with 100 GB mailboxes, shared calendars, and scheduling tools.7

• Device and Application Management: Intune Plan 1 for mobile device management and Windows Autopilot for simplified device deployment.8

• Identity and Access Management: Microsoft Entra9 ID P1 with single sign-on (SSO), multi-factor authentication (MFA), and conditional access policies.10

• File Storage and Sharing: OneDrive with 1 TB storage per user and SharePoint for team collaboration.11

Microsoft 365 E5:

This plan builds upon E3, adding advanced security, compliance, and analytics capabilities.12 It includes everything in E3, plus:

• Enhanced Security:

• Microsoft Defender for Endpoint for advanced threat protection.13

• Microsoft Entra ID P2 for enhanced identity and access management.14

• Microsoft Defender XDR for extended detection and response.15

• Microsoft Defender for Identity for identity-based attack detection.16

• Microsoft Defender for Cloud Apps for cloud app security visibility.17

• Azure Information Protection Plan 2 for data protection and classification.18

• Advanced Compliance:

• Microsoft Purview Insider Risk Management for insider risk detection and mitigation.19

• Microsoft Purview eDiscovery for advanced eDiscovery capabilities.20

• Information Protection and Governance for data protection and compliance.21

• Business Intelligence:

• Power BI Pro for advanced analytics and data visualization.22

Applications and Services Included:

Both E3 and E5 include a wide range of applications and services, such as:

• Microsoft Teams: Hub for teamwork and communication (now an optional add-on).

• Exchange Online: Business-class email and calendaring.23

• SharePoint: Collaboration platform for team sites and document management.24

• OneDrive: Cloud storage for individual users.25

• Yammer: Enterprise social networking for connecting and engaging employees.26

• Power Platform: Tools for building custom business solutions (Power Apps, Power Automate, Power BI).27

Choosing Between E3 and E5:

The best choice depends on your organization's specific needs and priorities.

• Choose E3 if:

• You need essential productivity tools with core security features.

• Your budget is a primary concern.

• You don't require advanced security or compliance capabilities.

• Choose E5 if:

• You need advanced security features to protect against complex cyber threats.

• You have strict regulatory compliance requirements.

• You want to leverage advanced analytics for better decision-making.

Additional Considerations:

• Add-ons: E3 can be supplemented with add-ons like E5 Security or E5 Compliance to access specific features without upgrading to the full E5 suite.28

• Microsoft 365 Copilot: This AI assistant can be added to both E3 and E5 to enhance productivity and creativity.29

• Teams: As of April 2024, Teams is no longer included in E3 and E5 plans and needs to be purchased as an add-on.30

Conclusion:

Microsoft 365 E3 and E5 offer powerful tools for businesses of all sizes.31 Choosing the right plan requires careful consideration of your organization's needs, budget, and priorities. By understanding the key differences and features of each plan, you can make an informed decision that empowers your employees and protects your business.