January 27, 2025
Unlocking the Right Plan for Your Business
Microsoft 365 is a cornerstone for modern organisations, offering a comprehensive suite of productivity, collaboration and security tools. While organisations with 300+ employees are required to have Enterprise licenses*, the decision between Microsoft 365 E3 and E5 for all organisations, including those with fewer than 300 employees—is not only about company size. It’s about aligning features with your organisation’s unique needs and priorities.
This updated guide explores their similarities, key differences and how to choose the right plan to maximise value—whether your focus is on productivity, security and/or advanced analytics.
What Do E3 and E5 Have in Common?
Both Microsoft 365 E3 and E5 deliver a robust set of tools that enable productivity and collaboration across organisational teams:
Both E3 and E5 provide a strong foundation for productivity and collaboration:
- Access to Office applications like Word, Excel and PowerPoint.
- Integrated tools such as Teams, SharePoint and OneDrive for collaboration.
- Enterprise-grade email with Exchange Online.
- Compliance and identity features like Microsoft Entra ID (formerly Azure Active Directory) with Conditional Access policies.
- 1 TB of cloud storage per user.
These shared features empower organisations to build scalable operations and enable seamless communication across teams, no matter their size or industry.
E3 vs. E5: Which Features Address Your Needs?
Choosing between E3 and E5 isn’t about organisational size—it’s about the challenges you’re trying to solve.
Advanced Security & Threat Protection
Microsoft 365 E3:
- Microsoft Defender Antivirus: Provides essential protection against malware and viruses.
- Conditional Access: Allows for basic access controls to applications and data.
Microsoft 365 E5:
- Microsoft Defender for Office 365 Plan 2: Offers advanced security features, including:
- Attack Simulation Training: Enables organisations to run realistic attack scenarios to train employees.
- Automated Investigation & Response: Streamlines threat detection and remediation processes.
- Threat Explorer: Provides real-time visualisation of threats across the organisation.
- Microsoft Defender for Endpoint: Delivers comprehensive endpoint protection with capabilities like:
- Endpoint Detection and Response (EDR): Identifies and responds to advanced threats on endpoints.
- Threat & Vulnerability Management: Continuously assesses and mitigates endpoint vulnerabilities.
- Microsoft Defender for Identity: Monitors and analyses user activities to detect and investigate advanced threats.
- Microsoft Defender for Cloud Apps: Provides visibility and control over cloud applications, ensuring secure usage.
For organisations operating in regulated industries or facing significant security challenges, these enhanced protections in E5 can significantly reduce risks.
Data-Driven Insights & Analytics
Microsoft 365 E3:
- Power BI Pro: Available as an add-on, offering data visualisation and business intelligence capabilities.
Microsoft 365 E5:
- Power BI Pro: Included by default, providing advanced analytics and interactive dashboards.
- Advanced Data Governance: Features such as:
- Customer Key: Allows organisations to control their encryption keys for data at rest.
- Advanced eDiscovery: Enhances the ability to identify, hold and export content for legal and regulatory purposes.
For businesses that rely heavily on data-driven decision-making, E5 offers comprehensive tools to transform data into actionable insights.
Communication & Cloud Telephony
Microsoft 365 E3:
- Microsoft Teams: Facilitates meetings and basic VoIP functionality.
Microsoft 365 E5:
- Microsoft Teams Phone: Enhances communication with:
- Cloud-based Telephony: Replaces traditional phone systems with integrated calling capabilities.
- Advanced Call Management: Features like call queues, auto-attendants and voicemail transcription.
- Integration with On-Premises Systems: Seamlessly connects with existing phone infrastructures.
E5 is ideal for organisations aiming to modernise their communication infrastructure with a comprehensive telephony solution.
Use Cases: Aligning Plans to Your Priorities
E3 is ideal for organisations that:
- Prioritise productivity and collaboration without requiring extensive security or telephony features.
- Want a cost-effective solution that includes compliance basics and core tools.
E5 is ideal for organisations that:
- Require advanced threat protection and compliance features for security-critical industries.
- Need integrated analytics tools and advanced insights for decision-making.
- Aim to modernise communication with a complete telephony solution.
How CyberOne Supports Your Microsoft 365 Journey
Choosing between Microsoft 365 E3 and E5 is a crucial decision, but it’s only the first step. Maximising the value of your investment requires thoughtful implementation, optimisation and ongoing support.
CyberOne can elevate your business by:
- Assessing your specific needs align with your organisational goals and licensing requirements
- Optimising the use of your Microsoft 365 licenses to ensure you’re maximising productivity and return on investment.
- Providing expert guidance on advanced features, like security tools and analytics, helping you harness the full potential of Microsoft 365 to achieve your business objectives.
Conclusion: Driving Growth with the Right Tools
The choice between Microsoft licenses depends on your unique needs and budget. E3 offers a robust foundation, while E5 equips enterprises with advanced security, analytics and telephony capabilities.
The decision between Microsoft 365 E3 and E5 hinges on your organisation’s specific needs and budget.
- E3 provides a robust foundation for productivity and collaboration, ideal for businesses focusing on essential features.
- E5 offers enhanced capabilities, including advanced security, comprehensive analytics and integrated telephony—perfect for organisations with complex requirements or those operating in highly regulated industries.
By assessing your priorities—whether advanced security, insightful analytics, or seamless telephony—you can select the plan that propels your organisation’s growth and operational efficiency. With CyberOne as your trusted partner, you can unlock the full potential of Microsoft 365 and ensure that your investment drives lasting value and success.
*Government, Not-for-Profit, Education and Frontline organisations are separate and have different licenses and requirements.
Register for Our Webinar on Microsoft 365 Licenses: Business vs. Enterprise

Discover how Microsoft 365 licences can transform your SMB’s security strategy! Join Luke Elston on January 30th for his insightful webinar, Demystifying Microsoft 365 Licenses: Business vs Enterprise and learn how to leverage the right tools for your business needs. Register now!