Microsoft 365 (M365) is a leading cloud productivity service used by millions of individuals and businesses worldwide. From content creation and data management to app collaboration, M365’s comprehensive suite of tools supports diverse needs across industries.
For businesses with over 300 registered users who require enterprise-level core security capabilities and advanced collaboration tools, Microsoft 365 Enterprise is the premier choice. Offering cloud storage, Office productivity apps, video conferencing, and more, it’s the go-to solution for modern enterprises.
Currently, two primary plans are available for businesses outside of frontline workforce roles: E3 and E5. In this article, we will explore the key differences between these Microsoft 365 Enterprise tiers, highlighting their features and benefits to help you determine the best option for your business needs.
M365 E3 Plan
At $33.75 (MSRP) per user per month, the M365 E3 plan builds upon the basic Office 365 plans. This “middle of the road” option includes all the features of O365 E1 along with more business-class email and SharePoint storage, as well as the comprehensive suite of apps for enterprise.
Note: Teams will be unbundled from Microsoft 365 enterprise plans starting April 1, 2024.
Other M365 E3 benefits are:
-
Windows Enterprise 10/11 E3
-
Advanced analytics through Viva Insights (Personal Insights)
-
Initial 5TB of OneDrive storage per user (1TB per user for subscriptions less than five users, cannot be expanded)
-
Security and threat protection through Intune, Entra ID, Microsoft Advanced Threat Analytics, and Microsoft Defender for Endpoint P1
In addition, M365 E3 subscribers also have access to optional add-ons for user groups, such as Microsoft 365 E5 Security and Compliance. These add-ons provide advanced threat protection, identity management, and compliance tools, helping businesses strengthen their security posture without committing to a full E5 upgrade. Additionally, other premium add-ons like Microsoft Viva Topics, Microsoft Viva Learning, and Windows 365 allow organizations to customize their M365 experience, selecting the features that best fit their needs—without the cost of the full E5 suite.
M365 E5 Tier Plan
The premium Microsoft 365 E5 tier includes all features within E3, but it also incorporates advanced analytics, voice capabilities, compliance tools, and additional advanced security features. Like E3, it allows Office to install mobile devices on up to five tablets, five phones, and five PCs or Macs.
E5 includes the complete " Defender” threat protection arsenal: Microsoft 365 Defender, Microsoft Defender for Endpoint Plan 2, Microsoft Defender for Office 365 P2, Microsoft Defender for Identity, and Microsoft Defender for Cloud Apps.
Other M365 E5 features include:
-
Advanced analytics through Viva Insights and Power apps, such as Power BI Pro, which provides you with real-time updates to govern, collaborate and visually report on data.
-
Advanced eDiscovery and basic auditing features.
-
Access to Entra ID P1 and P2 encompasses Access Reviews and Privileged Access Management (which includes risk-based Conditional Access).
-
Threat Protection with Advanced Threat Analytics, Microsoft Defender for Endpoint P2, Office 365, Cloud Apps, and Identity.
-
Compliance management with Advanced eDiscovery and Advanced Audit, as well as rules-based automatic retention policies, records management, and machine learning-based retention.
-
A cloud-based phone system with Microsoft Teams Phone Standard.
Choosing Between Microsoft 365 E3 vs. E5
Deciding between Microsoft 365 E3 and E5 often comes down to evaluating your organization’s needs, budget, and long-term goals. Here’s how to determine which plan is the best fit for your business:
-
Security Requirements: If your organization handles sensitive data or operates in a highly regulated industry, E5’s advanced security features, such as Microsoft Defender for Endpoint and Advanced Threat Protection, provide the comprehensive safeguards you may need. E3 offers strong foundational security but lacks the advanced tools that E5 includes.
-
Compliance Needs: E5 includes advanced compliance tools like Customer Key encryption and Advanced Audit for businesses facing stringent regulatory requirements. If your business has more straightforward compliance needs, E3 provides solid coverage without the added cost.
-
Data Analytics: E5 includes Power BI Pro for in-depth analytics and insights, making it ideal for organizations that rely on data-driven decision-making. E3, on the other hand, focuses on core productivity without advanced analytics capabilities.
-
Audio Conferencing and Communication: If your team requires advanced communication tools like unlimited audio conferencing and advanced calling features, E5 is the superior choice. E3 offers basic communication tools that may suffice for smaller teams or less complex needs.
-
Budget Constraints: With E3 priced at $33.75 per user per month (MSRP) and E5 at $54.75 per user per month (MSRP), the decision may also hinge on your budget. For businesses looking for essential features at a lower price, E3 is a strong contender, while E5 provides more robust capabilities at a premium, most notably Teams Phone and Power BI Pro.
-
Note: Be aware that if you are using ME3 or ME5 and purchasing User CALs for those same users, you are likely double-spending.
-
Scalability and Growth: Consider your organization’s growth trajectory. If your needs may expand to include advanced security or compliance tools, starting with E5 could save time and costs associated with upgrading later.
By carefully assessing these factors, you can choose the plan that best aligns with your operational priorities and long-term strategy. If you’re unsure which plan suits your business, Trusted Tech Team can help you evaluate your options and make the most informed decision
Make the Right Choice with Trusted Tech Team
Choosing between Microsoft 365 E3 and Microsoft 365 E5 comes down to your organization’s specific needs. Both plans offer robust productivity tools and collaboration features, but Microsoft 365 E5 includes additional security and management capabilities that cater to modern hybrid work environments. Understanding the differences can help you make a decision that aligns with your goals.
If you have questions or need further guidance, our team is here to help. Check out our comprehensive Microsoft 365 feature matrix for a detailed comparison of all available plans. With 6 out of 6 Partner Designations, Trusted Tech offers expert advice and on-shore Microsoft 365 support and services. Contact us today to find the perfect solution for your business.
