When evaluating Microsoft 365 for your business, it’s important to understand the differences between the Microsoft E3 vs E5 licenses, as choosing the right one can affect your company’s productivity and costs.
What’s Included in Microsoft 365 E3 vs E5?
This section will explore the specific features and services included in the Microsoft 365 E3 and E5 licenses to help you make an informed decision for your enterprise.
What’s included in Microsoft 365 E3?
Microsoft 365 E3 offers a suite of mobile and desktop apps that make up Microsoft’s productivity tools. These include Word, Excel, and Outlook apps and collaborative tools like OneDrive, SharePoint, and Planner. Businesses can use Power Apps and Power Automate for workflow automation and app development. E3 subscribers also get the Windows for Enterprise operating system, providing a smooth experience across devices.
With 1 TB of cloud storage, you can securely store and access your documents from anywhere. Your company’s data stays protected with top-notch security features. Plus, communication is a breeze with chat, meetings, and file sharing in team workspaces, perfect for teams spread across different locations. While Copilot isn’t automatically included in E3, you can easily add it by purchasing an extra license to take advantage of AI-driven productivity tools.
What’s included in Microsoft 365 E5?
E5 provides everything listed above in E3, plus some extra functionality. With E5, you’ll get Power BI Pro, allowing you access to analytics that scale with your business. You’ll also get advanced security and compliance. Another inclusion is audio conferencing for up to 1000 attendees for larger meetings and events.
E5 offers advanced security options, including:
- Microsoft Defender for Endpoint: Offering endpoint security to protect, detect, and help you recover from potential breaches.
- Microsoft Entra ID P2: A cloud identity and access management solution, ensuring only authorised users access your systems and data.
- Microsoft Defender XDR: Increases visibility of cyber threats across your business for better detection and response.
- Microsoft Defender for Identity: Manages identity risks and detects identity-based attacks.
- Microsoft Defender for Cloud Apps: Views apps used across your business and enhances their security.
- Azure Information Protection Plan 2: Classifies and protects sensitive documents, reducing the risk of leaks.
- Microsoft Purview Insider Risk Management: Investigate and protect against insider risks.
- Microsoft Purview eDiscovery: Finds the data you need for easier responses to legal issues or internal investigations.
- Information Protection and Governance: Better understands how your data is used and takes necessary measures to protect it.
These features provide advanced protection across your business area. Similarly to E3, Copilot can be added with a Copilot license.
The Price of E3 and E5
An E3 license costs £33.10 per user per month and requires an annual commitment for your organization. This fee provides access to a suite of productivity and security tools for business operations. The E5 license, offering more features and functionality, is priced at £52.40 per user per month. This higher cost reflects its extra capabilities, providing better security, analytics, and communication options for businesses seeking comprehensive technological support and risk management.
Pros & Cons
Microsoft 365 E3
Pros:
- Lower cost per user
- Core productivity apps and collaboration tools
- Basic security features
Cons:
- Limited security and compliance tools
- No advanced analytics and AI features
Microsoft 365 E5
Pros:
- Advanced security and compliance features
- Powerful analytics and AI tools
- Enhanced communication capabilities
Cons:
- Higher cost per user
- Potentially unnecessary features for smaller organisations
Key Differences Between Microsoft 365 E3 and E5
While both the E3 and E5 licenses share many applications and services, the distinct advantages of E5 come into play with its additional features. One significant enhancement is including Power BI Pro, part of the advanced BI capabilities offered by E5. This tool makes reporting and analysis more thorough, helping teams make smart decisions and share their findings easily across the organisation. E5 also uses advanced AI tools like MyAnalytics and Workplace Analytics to give deeper insights into how efficiently the organisation is running, boosting productivity and collaboration. Furthermore, E5 elevates security to a new level, incorporating superior threat protection, security management, privileged access controls, customer lockbox, and advanced eDiscovery. While the E3 license offers robust security measures, the E5 is designed to shield your organisation against a broader spectrum of threats and streamline compliance processes.
Add-ons Available for Microsoft 365 E3 and E5
| Add-on | Description |
| Audio Conferencing | Allows users to join meetings by phone and using a computer or mobile device. Included in Office 365 E5 and Microsoft 365 E5. |
| Azure Information Protection | Provides advanced data protection and classification features. Included in Microsoft 365 E3 and E5. |
| Calling Plan | Enables users to make and receive phone calls in Microsoft Teams. Requires an additional plan purchase (either Domestic or International) and is included in Office 365 E5 and Microsoft 365 E5. |
| Exchange Online Plan 2 | Provides advanced email and calendar features, including unlimited storage and archiving. Included in Microsoft 365 E3 and E5. |
| Power Apps | Allows users to create custom business apps without coding. Available as an add-on for Microsoft 365 E3 and E5. |
| Power Automate | Enables users to automate repetitive tasks and workflows. Available as an add-on for Microsoft 365 E3 and E5. |
| Power BI Pro | Provides advanced data visualisation and business intelligence features. Available as an add-on for Microsoft 365 E3 and E5. |
| Project Online | Enables project management and collaboration. Available as an add-on for Microsoft 365 E3 and E5. |
| Stream | Provides secure video sharing and management. Available as an add-on for Microsoft 365 E3 and E5. |
| Visio Online Plan 2 | Enables users to create and share professional diagrams. Available as an add-on for Microsoft 365 E3 and E5. |
| Yammer Enterprise | Provides social networking and collaboration features for organisations. Available as an add-on for Microsoft 365 E3 and E5. |
Other Notable Add-Ons:
- Microsoft 365 E5 Security: Adding the Microsoft 365 E5 Security suite to your existing E3 solution can further strengthen your organisation’s security posture. This robust suite offers advanced threat protection, intelligent security analytics, and integrated security management features that help defend against cyber threats and safeguard sensitive information.
- Microsoft 365 E5 Compliance: Microsoft 365 E5 Compliance offers tools to help your organisation assess compliance risks, manage and protect sensitive data, and meet regulatory requirements. This service helps businesses manage their compliance needs and simplify the process of meeting legal obligations.
- Microsoft Syntex: Microsoft Syntex is an add-on that uses AI and machine teaching to improve human skills, automate content processing, and turn content into knowledge. With Microsoft Syntex, your organisation can manage and process large amounts of data more effectively while gaining useful insights.
- Microsoft Viva Topics: Microsoft Viva Topics uses AI for content organisation and discovery to make information access and knowledge management easier at work. This allows employees to find and use the right information to improve productivity.
- Windows 365: Windows 365 is a cloud service that lets users stream their Windows experience, including apps, content, and settings, from the Microsoft cloud to any device. It offers more flexibility and access, so employees can work from anywhere with an internet connection.
- Microsoft Viva Insights (manager and leader insights): Microsoft Viva Insights provides data-driven insights into work patterns, employee wellbeing, and business outcomes while maintaining privacy safeguards for individuals. Managers and leaders can leverage these insights to make informed decisions and optimise organisational productivity and well-being.
- Microsoft Viva Learning: Microsoft Viva Learning seamlessly integrates access to learning content into the tools and platforms employees already use daily. This add-on service promotes continuous learning and development by making available educational resources and supporting employee growth and skills development.
- Microsoft Priva Privacy Risk Management: Microsoft Priva Privacy Risk Management helps organisations identify and protect against privacy risks and automate and manage subject requests at scale. This add-on service simplifies privacy risk management and enables businesses to comply with data protection regulations efficiently.
Which Should You Choose – E3 or E5?
Organisations should consider their specific needs and priorities when choosing between a Microsoft 365 E3 or E5 license. Budget is an essential factor, as E3 is usually more affordable. Smaller organisations that don’t need advanced reporting or security features might find that an E3 license suits their needs and budget. Larger organisations may prefer the E5 license because of its extra features, like better reporting for a data-driven approach and improved security against cybersecurity threats.
Organisations can also mix and match licenses to fit specific user needs, balancing cost and functionality. If some employees need E5 features while others don’t, using E5 for the former and E3 for the latter can optimise costs while meeting internal demands.
If you’re not sure which Microsoft 365 license is right for you, the Vantage 365 team has your back. Our experts will help you find the perfect license for your organisation, ensuring the best functionality and value. Plus, our security team is on hand to safeguard your environment with the latest security tech so you can make the most of your Microsoft 365 investment.
Factors to Consider Before Choosing Between E3 and E5
Consider your organisation’s needs and challenges when choosing between Microsoft 365 E3 and E5.
- Organisation size and structure
Large or complex organisations may benefit from E5’s features. Smaller or simpler organisations might find E3 sufficient.
- Security needs
Review your security requirements to decide if E3’s basic security is enough or if you need E5’s advanced tools. Industries with strict regulations, like healthcare and finance, may prefer E5.
- Budget considerations
Consider your budget when deciding whether to upgrade from E3 to E5. While E5 offers more features, it also costs more. Weigh the benefits against the expense to decide if upgrading is worth it.
FAQs
Can I upgrade from Microsoft 365 E3 to E5 at any time?
Yes, organisations can upgrade from Microsoft 365 E3 to E5 anytime. This allows businesses to adjust their solutions as needs change. The process is simple: administrators can manage and change licenses through the Microsoft 365 admin centre. Upgrading to E5 gives organisations access to advanced features, including better security, compliance tools, and analytics capabilities, helping them meet their operational needs and security challenges.
Does E5 include Teams?
No, E5 does not include Teams. Organisations wanting to improve their Teams experience can consider adding Microsoft Teams Premium, an add-on for Microsoft 365 subscribers. This add-on offers advanced meeting and webinar features, security options, and custom features, providing a better collaboration environment for organisational needs.
Can you mix E3 and E5 licenses?
Yes, you can mix and match Microsoft 365 licenses in your organisation. This flexibility lets you assign the right plan to users based on their needs and roles, ensuring you only pay for the features each user requires. This approach can save money, as you can provide advanced features from the E5 plan to users who need them while assigning the cheaper E3 plan to others who don’t need all the extra features of the E5 plan. Customising licenses to fit user roles and department needs allows organisations to maximise Microsoft 365 and improve efficiency.
Are there any discounts available for non-profits or educational institutions?
Yes, Microsoft offers special pricing for non-profits and educational institutions. These organisations can get discounts on E3 and E5 licenses, easing the financial burden while providing essential tools and services. Eligible non-profits and schools can contact Microsoft or their licensing partner to learn about these discounts and see how the plans might fit their needs, ensuring access to advanced features at a lower price.
What happens to my existing data and settings when I change my Microsoft 365 license?
When you change your Microsoft 365 license, your data and settings stay in place, ensuring a smooth transition. The upgrade or downgrade process usually keeps user data, email, and settings. However, ensure the new plan doesn’t exceed storage limits or feature restrictions. Administrators should look into the new license’s features and storage limits and back up vital information to avoid service problems.