Microsoft 365 is one of the most essential and popular software packages in the world. With its unbeatable productivity and office applications, and its enterprise-grade security, Microsoft 365 is simply the industry standard — and should be a major consideration for any business.

However, some businesses may need more than the simple Microsoft 365 for Business package. Enter the 365 E3 and E5 licenses. These licenses have been longstanding options for companies looking for a more enterprise-grade package with extended security features, and a bit more depth than the standard packages.

In this article, we’re going to go over the ins and outs of Microsoft 365 E3 and E5, and how they compare. We’ll take a look at both of them and how they differ, as well as which is best for your business.

Overview of Microsoft 365 E3

Microsoft 365 E3 is a robust starting point for any business looking to branch into the Microsoft 365 cloud. It offers more than the standard Microsoft 365 packages, such as essential security features such as antimalware and firewall, multi-factor authentication (MFA) and single sign-on (SSO).

On top of this, E3 provides you with enterprise-grade data loss prevention tools, and the ability to archive emails and complete enterprise functions at a very low cost.

E3 gives enterprises the tools they need in the modern world, but still at a basic level for smaller companies that may not need the full E5 or Business Premium package for their company.

Overview of Microsoft 365 E5

Microsoft 365 E5 contains all of the features included in E3 — but takes security, analytics, and compliance to the next level.

E5 gives businesses full control over their security, and more enterprise-grade tools than ever to make sure they’re well-equipped to face the needs and challenges of being an enterprise-grade business. This includes more advanced security tools, features, and even innovations that smaller businesses may not require in the long run.

While E3 is a great middle-ground for smaller businesses who may want enterprise-grade features, E5 is the full offering for businesses that know they need it.

Key Differences Between E3 and E5

Security Features

365 E3 includes essential security features such as firewall and antimalware software, and protected password systems such as multi-factor authentication (MFA) and single sign-on (SSO), keeping your business’s information safe.

However, when it comes to security features, 365 E5 is the clear winner — with access to the full Microsoft Defender Suite, you can guarantee your business is safe from growing cyber threats, providing multi-layered defence across a multitude of applications and endpoints within the cloud.

Compliance Tools

365 E3 does provide you with comprehensive compliance tools such as data loss prevention and information and threat protection. But, Microsoft 365 E5 does provide you with advanced versions of these tools.

On top of this, 365 E5 gives you better data governance tools, and a compliance management system, meaning that you can easily ensure that you’re compliant and that all of your security protocols meet compliance regulations and won’t cause any issues in the long run.

Productivity Tools

Within both plans, you will receive access to important productivity tools such as SharePoint and Exchange Online, OneDrive for Business, and most importantly, Microsoft Teams. But, the E5 package provides a host of tools that can further productivity.

Tools such as Power Apps and Power Automate can take your business’s productivity to the next level, and advanced features in Teams and SharePoint will let you thrive in collaboration.

Cost Comparison

With the included tools that set these two packages apart from the standard Microsoft 365 plans, both licenses are an excellent value for money, however, this price can rise when considering Microsoft’s package add-ons.

The two most valuable add-ons Microsoft has available are the Microsoft Teams and Copilot packages, which are beneficial to consider when purchasing. Microsoft also offers two add-ons to the E3 license — E5 Security and E5 Compliance, letting you enhance your existing plan with the same security or compliance features as the E5 plan, without having to upgrade.

Which Plan is Right for Your Business

When evaluating which plan is best for your business, it’s important to focus on tools, budget, and size. One business may prefer the E3 plan due to its lower cost, whereas another may find the increased security tools in the E5 plan are essential for their business’s safety.

Overall, the Microsoft 365 E3 plan will be perfect for many small and medium businesses looking for essential productivity, collaboration, management, and security tools to enhance their workplace and get started in the Microsoft 365 Cloud. E5 gives you more than just 365 and is great for a smaller business looking to reach enterprise-grade or a medium-sized business that knows what it needs.

The Microsoft 365 E5 plan is beneficial for businesses looking to take advantage of the enhanced features offered, such as powerful analytics and compliance tools, and Microsoft’s Defender Suite, providing high-end security tools to fully protect your business. This is typically larger and more established businesses, who know they need the higher end of Microsoft’s features.

It is also essential to consider the optional add-ons — the Microsoft Teams and Copilot packages, and the upgraded Security and Compliance packages for the E3 plan. If you want these features within your chosen Microsoft 365 plan, they’ll need to be licensed separately.

How We Can Help

Microsoft 365 E3 and E5 are both essential considerations for any business and will ensure that your business has everything it needs to succeed. After all, it comes with top-grade enterprise features as well as the office apps that you know and love.

If you’re looking to get started with Microsoft 365 but need extra support, reach out to us now. We can take you through the whole process of getting the correct 365 licenses, as well as everything else you need to be able to hit the ground running with Microsoft 365.

Get in touch with us now and see how we can help.