Our comprehensive guide to Microsoft’s enterprise E3 and E5 licences

Microsoft 365 E3 and E5 are Microsoft’s top tier licences for enterprise-level organisations.

Navigating Microsoft enterprise licences for the modern workplace can be a challenge. While you want to make the right choice for your organisation it’s easy to get bogged down by the different SKUs, product rebrands, groupings, and add-ons.

Let's dive in to explain the differences between Microsoft 365’s two main enterprise licensing options: E3 and E5.

Microsoft 365 E3 v E5: What’s the difference?

As a top line comparison:

• Microsoft 365 E3?contains the Office productivity suite plus core security capabilities. E3 can be topped up with security and compliance licensing add-ons to access some E5 tech without making the full jump to an E5 licence.
• Microsoft 365 E5?is the complete suite of productivity, advanced security, compliance, voice, and analytical capabilities. It includes the full range of Office 365 Enterprise, Windows 11 Enterprise, and Enterprise Mobility + Security technologies.

Getting to know Microsoft 365 E3

Microsoft 365 E3 is well-suited for organisations needing robust productivity tools with essential security and compliance features.

Key features include:

• Office applications
• Email and calendar
• Device and application management
• Identity and access management
• Collaboration tools
• Work and social management tools
• Video and content creation
• Analytics and insights
• Basic threat protection
• Information protection
• Generative AI

Key Add-ons for E3:

• Microsoft Teams: Now an optional add-on as of April 2024.
• E5 Security: Offers enhanced security features such as advanced threat detection and response without upgrading to the full E5 suite.
• E5 Compliance: Adds advanced compliance tools like eDiscovery Premium and Insider Risk Management.
• Microsoft 365 Copilot: An integrated AI assistant integrated into your Microsoft 365 apps that helps boost productivity and creativity in your everyday tasks.

Why Choose Microsoft 365 E3?

E3 is ideal for medium to large organisations needing core productivity, security, and collaboration tools without the complexity or cost of more advanced plans.

Microsoft 365 E3 offers a great starting point for enterprise organisations. It provides the essential productivity, collaboration, and management tools needed for day-to-day business operations.

But with security threats becoming increasingly sophisticated and compliance requirements more demanding, moving beyond basic security is growing increasingly business critical.

For organisations requiring more advanced security and compliance, the E5 licence or add-ons offer additional protection and features.

Microsoft 365 E5: A comprehensive solution

E5 builds on everything available in E3, enhancing productivity tools with advanced security, compliance, and analytics capabilities. It’s designed for organisations that need to protect against complex cyber threats, meet strict regulatory requirements, and harness advanced data insights for better decision-making.

Here are the key drivers that allow Microsoft 365 E5 to build on the solid foundation offered by E3:

Comprehensive identity and access management

Includes:

• Microsoft Entra ID P2

Threat protection

E5 includes:

• Microsoft Defender XDR
• Microsoft Defender for Endpoint Plan 2
• Microsoft Defender for Office 365
• Microsoft Defender for Identity
• Microsoft Defender for Cloud Apps

Information protection and compliance

Includes:

• Microsoft Defender for Cloud Apps
• Microsoft Purview eDiscovery
• Microsoft Insider Risk Management

Advanced analytics

Includes:

• Power BI Pro

Microsoft 365 E3 vs. E5 cost comparison

For UK customers, Microsoft 365 E3 currently retails at around ￡31 per user/per month with Microsoft 365 E5 coming in at approximately ￡50 per user/per month.

Microsoft price the licences this way so that as employees or partners come and go from your organisation’s environment you only pay for the number of active users. That way you can accurately predict whether your licensing cost will go up or down as your business changes.

Of course, pricing is always subject to change, so we advise you check for current prices online, or speak to a Microsoft partner (like Kocho), for the latest pricing options.

Is Microsoft 365 E5 worth it?

It really comes down to what you think you need. For some enterprises, an E3 licence may be ‘good enough,’ but as we’ve highlighted, E5 offers significant security and compliance advantages.

It’s also worth considering the bigger picture beyond the individual technologies included in E5.

Organisations of all sizes and sectors face growing risks from modern cyber threats, including sophisticated phishing, ransomware, and identity theft. The rise of generative AI has further enabled cybercriminals to exploit vulnerabilities more quickly.

Microsoft 365 E5 provides a unified suite of high-end security tools, offering a proactive, multi-layered defence to detect, prevent, and respond to attacks before they cause damage.

In addition to security, E5 enables organisations to consolidate vendor costs and simplify management by offering a comprehensive solution, reducing the complexity of managing multiple tools. E5 also delivers advanced data analytics, unified communications, and AI tools to drive efficiency, improve decision-making, and foster innovation. For businesses that need more than productivity tools, E5 provides unmatched security, compliance, and value.

Should you buy through a Microsoft partner?

While you can purchase Microsoft 365 directly from Microsoft, buying through a partner like Kocho can often offer a range of advantages:

• Customised support: Partners can provide tailored advice on which licences and add-ons are best for your organisation’s needs.
• Bundled services: Consider the additional services a partner might bring to the table, like managed support or managed security operations.
• Optimisation: A partner can help you navigate pricing to enable full cost-efficiency and ensure your licences are being used efficiently. Preventing you from paying for features you don’t need.

Whether it’s E3 or E5, fast track to a successful investment

If you think E3 or E5 could be the solution for your organisation, Microsoft has a dedicated FastTrack programme designed to help you get up and running as smoothly as possible.

As a certified Microsoft 365 FastTrack Ready Partner, Kocho has access to a wealth of resources and funding through the FastTrack service to help our clients deploy, onboard, and improve their Microsoft 365 solutions.

FastTrack is available to everyone with a Microsoft 365, Office 365, Azure, or Dynamics 365 subscription at no additional cost.

Whether you’re reviewing your existing licence landscape before renewal or looking to adopt Microsoft 365 into your organisation, then let’s talk.

Our experts are here to understand your needs, get you onboarded with ease, and ensure optimal ROI from day one.

Contact us today.

This blog post was originally published on kocho.co.uk