Skip to content Skip to bottom

Microsoft E3 vs E5: Comparing Microsoft 365 Licenses

The E3 vs E5 license showdown – which one will come out on top? 

Microsoft 365 is an extensive cloud platform offering a range of user-friendly productivity apps, security capabilities, storage and more. But for your business to access the benefits of Microsoft 365, you’ll need licenses – and there are lot to choose from. 

It’s no secret that Microsoft licensing can get pretty complicated, pretty quickly. However, there are two main license types specifically designed for enterprises – E3 and E5. So, what’s the difference? 

While both offer an excellent range of products and capabilities, there are some core differences, from security to scalability, collaboration to cost. This blog looks at Microsoft E3 vs E5 subscriptions side-by-side to help you understand what each of the license types include, and which may be the best for the different users across your organisation. 

How They Are Similar

Microsoft 365 E3 and E5 are two of the most comprehensive licensing options for enterprises, with both subscriptions offering a robust suite of productivity, collaboration, and security tools. 

Both licenses include the core Office 365 applications such as Word, Excel, PowerPoint, and Outlook, as well as cloud services like Exchange Online, SharePoint Online, OneDrive for Business, and Microsoft Teams. Both also enable you to add-on Copilot for Microsoft 365. So how do they differ? 

Microsoft E3 vs E5 – Security and Compliance 

When it comes to Microsoft 365, E5 offers more advanced security and compliance capabilities than E3.  E5 includes all the security features of E3, such as Microsoft Defender for Office 365 Plan 1, which protects against advanced threats like phishing and zero-day malware, and data loss prevention (DLP) policies for email and files. 

However, E5 goes further by including Microsoft Defender for Office 365 Plan 2, which provides advanced threat protection capabilities, including automated investigation and response (AIR). This is a great benefit if security is a priority in your business. The E5 license also provides more extensive compliance solutions with features like Advanced eDiscovery, Advanced Data Governance, and Customer Lockbox, which are not available in the E3 plan. 

All in all, Microsoft 365 E5 is the better option for organisations who want to ensure their core workspace is protected by leading security features. 

Learn more about Microsoft Defender. 

Microsoft E3 vs E5 – Analytics and Business Intelligence 

If advanced analytics is your thing, E5 is an ideal option. That’s because Microsoft 365 E5 comes with Power BI, a powerful tool for data analysis and visualisation. Power BI allows users to easily create and share professional reports, insights, and dashboards. This is particularly valuable if you’re looking to leverage data for strategic decision-making. 

While the E3 plan doesn’t included Power Bi, it does still provide access to basic analytics tools available within the Office suite and SharePoint. However, if you’re looking to move towards becoming a more data-led organisation, the addition of Power Bi will be a huge benefit. 

Microsoft E3 vs E5 – Communication and Collaboration 

Microsoft 365 E5 makes it simpler to expand communications within your business. E5 enables you to access enterprise-grade calling capabilities and easily extend your modern workplace with digital voice solutions underpinned by BT and Microsoft Operator Connect. 

Learn more about Voice One Teams Connect – the flexible and cost-effective way to add calling to Teams. 

Additionally, the E5 license offers Audio Conferencing, allowing users to join Teams meetings via a local dial-in number, which is great for remote or mobile employees. While E3 includes robust collaboration tools within Microsoft Teams, it lacks the advanced telephony features that E5 offers. 

Microsoft E5 vs E3 – Cost 

One thing most businesses will consider when looking at E3 vs E5 is the cost. With all the added extras within E5, you’re of course looking at a higher price point. While Microsoft 365 E5 is more expensive than the E3 license, it offers a range of advanced features and capabilities. It also provides opportunities to extend your workspace in a way that you can’t with an E3 license. 

It’s really important for you to think about you’re the unique requirements and priorities within your business to assess whether the additional capabilities justify the extra cost. If cost is one of your main considerations, an E3 license will still provide you with access to some of the best productivity and collaboration tools on the market. 

Get Licensing Support – No Jargon, No Complexity

We know that Microsoft licensing can be a minefield. At 848, we don’t just help clients understand the difference between the range of license types; we help them get more out of their existing subscriptions and create a software estate that meets their unique requirements. 

There’s no one-size-fits-all approach, and our team of software licensing experts can help you mix-and-match licenses to meet the different needs of different users across your business, making sure you’re getting the most value for money. We often help customers save money on their monthly subscriptions, helping them consolidate licenses and avoid overspending when it comes to cloud services.  

Whether you’re looking at Microsoft E3 vs E5 licenses, or any other Microsoft services, we’re here to help. 

Your Dedicated Microsoft Partner

The 848 Group is an experienced Microsoft Solutions Partner specialising in the Microsoft 365 cloud, security, and more. We’re here to help you build a flexible modern workplace that delivers value – now, and in the future. 

Not sure if you’re getting the most out of your licenses? Why not start with a Software License Review? We can take a deep dive into your license estate, and help you identify ways you can pptimise, streamline, and save.