Microsoft 365 E3 vs E5: Find the Best Plan for Your Business

Microsoft 365 E3 vs E5: Find the Best Plan for Your Business

Microsoft 365 E3 vs Microsoft 365 E5

Selecting the right Microsoft 365 plan for your organization is crucial for enhancing productivity, security, and efficiency. This guide will help you decide between Microsoft 365 E3 and E5 by comparing their features, pricing, and specific use cases. By the end, you’ll be equipped to choose the plan that best suits your organization’s needs.

Core Productivity Tools

Both E3 and E5 offer essential productivity tools like Word, Excel, PowerPoint, OneNote, Outlook, and Teams. These applications help employees collaborate effectively, regardless of their location. Additionally, both plans include SharePoint, OneDrive, and Exchange for seamless file sharing, storage, and email management.

Device Installation:

  • E3 and E5: Install apps on up to 5 PCs or Macs, 5 tablets, and 5 mobile devices.

Security Features

Security is a top priority for any organization. While Microsoft 365 E3 offers basic security features such as multi-factor authentication and data loss prevention, the E5 plan enhances security significantly. It includes advanced threat protection, intelligent security management, and additional compliance features like privileged access management, customer lockbox, and advanced eDiscovery.

Security Feature 

Microsoft 365 E3 

Microsoft 365 E5

Multi-Factor Authentication 

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Data Loss Prevention 

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Basic Threat Protection 

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Advanced Threat Protection 

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Intelligent Security Management 

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Privileged Access Management 

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Customer Lockbox 

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Advanced eDiscovery 

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Advanced Analytics and AI Tools

Microsoft 365 E5 includes advanced analytics and AI tools not available in the E3 plan. Power BI Pro, an interactive data visualization tool, enables employees to make data-driven decisions. E5 also offers advanced AI capabilities, such as MyAnalytics and Workplace Analytics, which provide insights into productivity and collaboration trends.

Analytics Tool 

Microsoft 365 E3 

Microsoft 365 E5

Basic Analytics 

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Power BI Pro 

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MyAnalytics 

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Workplace Analytics 

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Detailed Feature Comparison

When choosing between Microsoft 365 E3 and E5, consider the specific features each plan offers. Here’s a comprehensive comparison:

Feature 

Microsoft 365 E3 

Microsoft 365 E5

Price per user/month (annual commitment) 

$33.75

$54.75

Office Apps

Install on 5 devices 

Install on 5 devices 

Office Online

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Excel Power Query and Power Pivot

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Sway

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Infopath

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Use Office on Remote Desktop

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OneDrive Storage

Unlimited

Unlimited

Audio-conferencing features

n 10

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Advanced compliance features

n 10

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Advanced analytics 

n 10

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Advanced retention policies for email 

n 10

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Advanced Threat Protection 

n 10

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Customer Lockbox 

n 10

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PSTN capabilities (Skype for Business) 

n 10

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Pricing

microsoft 365 e3 vs e5 price comparison

  • E3 Plan: $33.75 per user per month (annual commitment)
  • E5 Plan: $54.75 per user per month (annual commitment)

While E5 is more expensive, its advanced features can justify the investment for organizations with complex security needs or those looking to leverage data-driven insights.

 

Pros and Cons

Microsoft 365 E3

  • Pros: Lower cost per user, core productivity apps, 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 organizations.

Choosing the Right Plan

To decide between E3 and E5, assess your organization’s size, complexity, and specific needs. Here are a few considerations:

  • Small to Medium-sized Businesses: E3 might be sufficient if you don’t need advanced security and analytics.
  • Large Enterprises: E5 is better for organizations with high-security needs and those looking to utilize advanced analytics and AI.

Add-On Services

Both plans offer add-on services to enhance functionality:

Add-on 

Description

Audio Conferencing 

Allows users to join meetings by phone. 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.

Exchange Online Plan 2 

Provides advanced email and calendar features, including unlimited storage and archiving.

Power Apps 

Allows users to create custom business apps without coding.

Power Automate 

Enables users to automate repetitive tasks and workflows.

Power BI Pro 

Provides advanced data visualization and business intelligence features.

Project Online 

Enables project management and collaboration.

Stream 

Provides secure video sharing and management.

Visio Online Plan 2 

Enables users to create and share professional diagrams.

Yammer Enterprise 

Provides social networking and collaboration features for organizations.

Additional Features and Benefits

Microsoft 365 Apps:

  • Microsoft 365 mobile app
  • Install apps on up to five PCs or Macs, five tablets, and five mobile devices
  • Make Microsoft 365 for mobile your productivity app with Word, Excel, and PowerPoint
  • Transform the way you use and visualize data with Visio for the web
  • Install desktop client apps
  • Co-create, organize, and work together on projects with Loop

Email, Calendar, and Scheduling:

  • Business-class email and calendaring with Exchange
  • Schedule management with Shifts in Microsoft Teams
  • Appointment scheduling with Microsoft Bookings

Meetings, Calling, and Chat:

  • Chat, meet, share files, and use business apps in a shared workspace with Teams
  • Audio conferencing for up to 1,000 phone attendees
  • Call control and PBX capabilities in the cloud with Teams

Social, Intranet, and Storage:

  • Share and manage content with SharePoint
  • Employee communities and conversations with Viva Engage
  • Employee engagement with Viva Connections

Content Services:

  • Insights with Microsoft Graph API
  • Intelligent video with Microsoft Stream
  • Surveys, quizzes, and polls with Microsoft Forms
  • Information tracking with Microsoft Lists

Insights and Analytics:

  • Productivity insights with Viva Insights
  • Informed decisions with Power BI Pro

Project and Task Management:

  • Task management with Microsoft Planner
  • Day planning with Microsoft To Do

Automation, App Building, and Chatbots:

  • Custom business apps with Power Apps
  • Workflow automation with Power Automate
  • Custom chatbots for Teams with Power Virtual Agents
  • Low-code database with Microsoft Dataverse for Teams

Information Protection:

  • Document and email protection with Microsoft Purview Information Protection
  • Actions on sensitive items to prevent sharing

Threat Protection:

  • Endpoint security with Microsoft Defender for Endpoint
  • Cyberattack protection with Microsoft Defender for Identity
  • Malicious threat protection with Microsoft Defender for Office 365 Plan 2
  • Untrusted site isolation with Microsoft Defender Application Guard

Cloud Access Security Broker:

  • Deployment modes, log collection, API connectors, reverse proxy
  • Real-time data control and threat combat

Identity and Access Management:

  • Simplified access with one identity platform
  • Credential breach protection
  • Attack timeline view with Microsoft Advanced Threat Analytics
  • Fast, secure sign-in with Windows Hello for Business

Endpoint and App Management:

  • Device protection with Microsoft Intune
  • Company security policies and business apps privacy maintenance
  • Device compliance enforcement

Conclusion

Choosing between Microsoft 365 E3 and E5 depends on your organization’s specific needs and budget. E3 is a cost-effective option for smaller organizations with basic security needs, while E5 offers advanced features suitable for larger enterprises with complex security and compliance requirements.