If you’re considering upgrading your organization’s cloud services, Microsoft 365 offers a range of plans to meet different needs. However, the sheer number of plans and differences between them can be daunting. This post will compare two popular options: the Microsoft 365 E3 and E5 plans.

Microsoft E3 vs. E5: What’s the Difference?

Generally speaking, Microsoft 365 E5 contains all the features of E3, but there are a few differences to note.

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  • Advanced analytics: Power BI Pro, Microsoft’s business analytics tool, is only included in the E5 plan
  • Identity and access management: The E3 plan includes Azure Active Directory Premium Plan 1, while the E5 plan steps it up to Premium Plan 2
  • Advanced Threat Protection: The E5 plan has Microsoft 365 Defender and several other advanced security features not available in the E3 plan. However, the E3 plan still offers robust protection with Microsoft Defender for Endpoint P1, with P2 included in E5
  • Information protection: Both plans offer Azure Information Protection, but E5 includes the more advanced P2 version and Microsoft Defender for Cloud Apps
  • Compliance management: E5 pulls out all the stops with a suite of features unavailable in the E3 plan. These include rules-based automatic retention policies, machine learning-based retention, records management, advanced eDiscovery, advanced audit, Insider Risk Management, communication compliance, information barriers, customer Lockbox, privileged access management, and built-in third-party connections
  • Data loss prevention – Both E3 and E5 have data loss prevention features. However, E3 is limited to email and files. E5 adds DLP protection for Teams chat and Endpoint DLP protection

How is Microsoft 365 Licensed?

Microsoft 365 E3 and E5 can be obtained through various licensing agreements, including the Enterprise Agreement, Enterprise Agreement Subscription, and Microsoft Products and Services Agreement (MPSA). These options cater to commercial and government customers.

The Cloud Solution Provider (CSP) program is available for those with cloud-only deployments. Microsoft 365 allows Enterprise Agreement customers to license in a true per-user model, simplifying management and eliminating the need to count devices.

There is a significant difference between the cost of E3 and E5.

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Latest pricing comparison here: https://www.microsoft.com/en-us/microsoft-365/enterprise/microsoft365-plans-and-pricing

E3 and E5

Cost difference between E3 and E5

Which Devices are Supported?

Microsoft 365 can be used on a broad range of devices as long as they run on supported Windows 10 and Windows 11. It includes desktops, laptops, tablets, smartphones, and all-in-one computers.

Management Features

Microsoft 365 offers an admin center for both E3 and E5 where IT professionals can manage the organization’s service plan. This hub is used to set up the organization in the cloud, manage users, manage subscriptions, and more. It includes features for creating and managing users and groups, handling billing and subscription matters, supporting service requests, and managing global settings for apps like email, sites, and the Office suite.

Security Features

In addition to the base service plans, security and compliance add-ons are available. These can enhance the base licensing service options, and the two core items are included in the E5 plan.

The first add-on is Microsoft 365 Security, which includes all the solutions in Microsoft 365 Defender, and the second add-on is Microsoft 365 Compliance, which provides information protection, classification, and governance capabilities. These add-ons provide an option for those who don’t want to or can’t upgrade from E3 to E5.

Advanced Security Features

One of the core differentiators between the Microsoft 365 E3 and E5 plans is the suite of advanced security features. Protecting sensitive data is a primary concern for businesses of all sizes, and Microsoft’s offerings provide a robust line of defense.

The E5 plan offers comprehensive threat protection through the Microsoft Defender suite. It includes Microsoft Defender for Endpoint P2, Microsoft Defender for Office 365, and Microsoft Defender for Identity, all exclusive to E5​​.

In comparison, the E3 plan includes Microsoft Defender for Endpoint P1. While it offers solid protection, it doesn’t have the full feature set that the E5 plan provides. Still, it is a valuable tool for maintaining your organization’s security posture.

Phone System

A critical component of Microsoft 365 is its phone system, which is integral to Microsoft Teams. Teams is a hub for collaboration, enabling employees to chat, meet, call, and collaborate all in one place, regardless of where they are.

The E3 and E5 plans include Microsoft Teams, but the E5 plan goes one step further by incorporating a phone system and audio conferencing features, bolstering your capacity for seamless communication​.

Microsoft Advanced Threat Analytics

Data is the lifeblood of modern businesses, and Microsoft 365 caters to this need with advanced analytics capabilities. Power BI Pro, which is only included in the E5 plan, is a comprehensive business analytics tool that enables organizations to visualize their data, share insights, or embed them in an app or website.

Power BI Pro can connect to hundreds of data sources, simplify data prep, and drive ad hoc analysis. The E5 plan’s inclusion of Power BI Pro sets it apart as a powerful tool for businesses seeking to harness the power of their data​.

Identity and Access Management

Identity and access management is a critical part of maintaining secure business processes. The E3 and E5 plans include Azure Active Directory Premium, which offers multi-factor authentication, conditional access, and more. However, the E5 plan includes Azure Active Directory Premium Plan 2, which offers additional compliance features like privileged access management, making it an attractive option for organizations with rigorous regulatory requirements​​.

Compliance Management

Compliance management is crucial to any business, particularly for those operating in highly regulated industries. The E5 plan offers a comprehensive suite of compliance management tools, including advanced eDiscovery, advanced audit, insider risk management, communication compliance, information barriers, customer Lockbox, and privileged access management.

These tools can help ensure that your business adheres to all regulatory requirements, giving you peace of mind and saving you from potential legal complications​.

Cloud Apps

The move towards cloud services has been a defining trend in recent years, and Microsoft 365’s cloud apps are at the forefront of this shift. The E3 and E5 plans offer a range of web and mobile apps, including Microsoft Office applications like Word, Excel, PowerPoint, and more.

These applications can be accessed from anywhere, providing a flexible and efficient work experience. The E5 plan also includes additional features like Microsoft Access, a powerful tool for data management, and Power Automate, which helps automate business processes​.

Frequently Asked Questions (FAQs)

1. How Does Microsoft 365’s Cross-Platform Availability Impact My Business?

Microsoft 365 provides a consistent productivity experience across different devices and operating systems. Whether your team members prefer working on desktops, laptops, tablets, or smartphones, they can seamlessly access the same suite of tools, applications, and services. This flexibility can improve productivity, enhance collaboration, and increase job satisfaction, making Microsoft 365 a smart investment for businesses of all sizes​​.

2. Are There Additional Security Features Available With Microsoft 365?

Yes, in addition to the base security features included in Microsoft 365 E3 and E5, security and compliance add-ons are available to enhance your organization’s protection further. These add-ons include Microsoft 365 Security and Microsoft 365 Compliance. The former provides advanced security and identity protection tools, while the latter offers information protection, classification, and governance capabilities. These add-ons can benefit organizations with stringent security or compliance requirements​.

3. What Can I Manage With the Microsoft 365 Admin Center?

The Microsoft 365 admin center is your primary tool for managing your Microsoft 365 service plan. Here, you can set up your organization in the cloud, manage users and subscriptions, and much more. Specific features include user and group management, resource creation and management, billing details, support requests, and global settings for apps like email, sites, and the Office suite​.

4. What Factors Should I Consider When Choosing Between Microsoft 365 E3 and E5?

Choosing between Microsoft 365 E3 and E5 depends on your organization’s specific needs and budget. Factors to consider are the size of your organization, the nature of your business, your security and compliance requirements, your need for advanced analytics, and your budget. Additionally, consider each plan’s specific tools, services, and features and how these align with your business goals and processes.

5. Are There Different Licensing Options for Microsoft 365 E3 and E5?

Both Microsoft 365 E3 and E5 are available through the Enterprise Agreement, Enterprise Agreement Subscription, and Microsoft Products and Services Agreement (MPSA) for commercial and government customers. They’re also available in the Cloud Solution Provider (CSP) program for customers with cloud-only deployments. This range of licensing options provides flexibility for different types of organizations and deployment needs.

Wrapping Up

Deciding between Microsoft 365 E3 vs. E5 is an important decision as it will directly affect the cost of your Microsoft 365 subscription. The vast array of features, benefits, and potential applications can be daunting to choose between. However, whether you’re a small business owner or a multinational corporation, Microsoft’s comprehensive offerings are designed to provide you with a robust and flexible solution that caters to your unique needs.

Hopefully, this look at Microsoft 365 E3 vs. E5 has illuminated the differences between them, including the robust data loss prevention and advanced analytics of E5 compared to the array of features included in the E3.

However, the choice between E3 and E5 ultimately hinges on your specific needs, requirements, and budget. Consider your organization’s security posture, communication requirements, and compliance capabilities. Evaluate your need for advanced security features, identity and access management, and advanced threat protection. Also, remember that you can mix and match between the two. Some users may only need E3, while others may need features included with E5.

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