If you’re looking for an enterprise productivity suite, Microsoft 365 has what you need. Even its standard office applications are significantly more sophisticated than their competitors. Factor in advanced security, collaboration features such as SharePoint and OneDrive, and the Microsoft 365 suite is a powerful business accelerator.
Once you’ve decided on Microsoft 365, you need to consider which licence is best for your business. In this article, we look at the differences between the E3 and E5 enterprise Microsoft 365 licences and how to work out which one is right for you.
Table of contents
- Microsoft 365 E3: what’s included
- Microsoft 365 E5: what’s included
- Pricing differences between E3 and E5
- Microsoft E3 vs E5: which is right for you?
- Need help with Microsoft licensing?
Microsoft 365 E3: what’s included
The Microsoft 365 E3 licence includes the standard Office productivity apps, such as Microsoft Word, Excel, PowerPoint, and Access.
It also comes with advanced collaboration and sharing apps. These include well-known platforms such as OneDrive and SharePoint.
But E3 also includes Viva Engage. This allows you to create an internal social network that enables employees to share knowledge and work more effectively together.
As you’d expect, the E3 licence has a lower price per user per month.
Microsoft 365 E5: what’s included
Everything you get with the Microsoft 365 E3 licence also comes with the E5 licence. But this licence also comes with advanced analytics, security and compliance features.
The first of these, is Microsoft Power BI Pro. This business-intelligence platform helps you unify all your data sources then mine them for valuable business insights.
Along with business intelligence, the E5 licence comes with a range of advanced security and compliance features and functions. The extra security features of E5, including anti-virus, also means that subscribers save on the expense of buying these products separately.
Pricing differences between E3 and E5
In April 2024, Microsoft changed its licensing for Microsoft 365, so that its collaboration applications Teams is no longer included as standard. Instead, it’s an extra, which can be integrated into the product suite.
Because of this, the two licences you need to check to find the latest pricing are Microsoft 365 E3 (no Teams) and Microsoft 365 E5 (no Teams).
On the date on which this page was last updated (January 2025), these were the starting prices (minus added extras) for the two licences:
- Microsoft 365 E3 (no Teams) — £29 per user, per month (excluding VAT)
- Microsoft 365 E5 (no Teams) — £47.10 per user, per month (excluding VAT)
Microsoft E3 vs E5: which is right for you?
Whether you need Microsoft E3 or E5 depends on your business model and specific technology, security and compliance needs.
If you are not handling particularly sensitive data and your primary need is for a flexible, productivity suite that you can use from anywhere, the E3 licence is best for you.
The E3 licence also costs less than the E5 licence. While prices can vary depending on your exact configuration, the headline figure is around £20 difference per user per month. If you don’t need the advanced features of E5, that’s a significant saving.
For larger organisations, and particularly for those with strict compliance requirements and liabilities, the E5 licence will usually be preferable. This includes advanced data security and compliance applications as standard.
These include apps that not only secure your devices and data but also perform advanced security tasks such as detecting insider threats or performing data discovery and compliance audits.
The E5 licence also supports a wide range of connectors and APIs. Using these, you can connect to advanced third-party workflow, compliance and productivity platforms.
In some cases, businesses may also be better off mixing and matching: using the E3 licence in some departments and the E5 in others. This gets you the best of both worlds: lower costs, where possible, and advanced features when required.
| Plan | Best for | Key features | Starting price |
| Microsoft 365 E3 | Large SMEs and enterprises | Advanced security, compliance tools, full Office apps, and Microsoft Teams collaboration |
£29 per user, per month (excluding VAT) |
| Microsoft 365 E5 | Organisations requiring robust security measures | Advanced threat protection, eDiscovery, security and compliance features | £47.10 per user, per month (excluding VAT) |
Need help with Microsoft licensing?
Texaport is one of the UK’s leading Microsoft 365 experts. Our consultants can help you work out which Microsoft 365 licence is right for you. And they can help you configure and deploy Microsoft 365 in a way best suited to your business needs and goals.
Our experts can help you choose the right mix of licences and capabilities for your business goals. Contact us today to speak to one of our consultants today, to find out how Microsoft 365 can help you achieve your business goals.
