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

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
Data Loss Prevention
Basic Threat Protection
Advanced Threat Protection
Intelligent Security Management
Privileged Access Management
Customer Lockbox
Advanced eDiscovery

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
Power BI Pro
MyAnalytics
Workplace Analytics

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
Excel Power Query and Power Pivot
Sway
Infopath
Use Office on Remote Desktop
OneDrive Storage	Unlimited	Unlimited
Audio-conferencing features
Advanced compliance features
Advanced analytics
Advanced retention policies for email
Advanced Threat Protection
Customer Lockbox
PSTN capabilities (Skype for Business)

Pricing

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.

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