Which Is Better for My Business: Microsoft 365 E3 or E5?

Microsoft 365 E3 is better for businesses focused on cost-effective productivity tools and basic security features, while E5 is ideal for organizations needing advanced security, compliance, and analytics. Your choice depends on your specific business needs, IT requirements, and budget.

---

Key Differences Between Microsoft 365 E3 and E5

Both Microsoft 365 E3 and E5 offer robust productivity tools, but they differ significantly in advanced features and capabilities.

1. Productivity Tools

Both plans include essential Office apps, email, and collaboration tools.

Feature	Microsoft 365 E3	Microsoft 365 E5
Office Apps (Desktop & Web)	Included	Included
Email and Calendar	Outlook with 100GB mailbox	Outlook with 100GB mailbox
Collaboration Tools	Microsoft Teams, SharePoint, OneDrive	Microsoft Teams, SharePoint, OneDrive

No Key Difference: Both plans provide the same set of productivity tools.

---

2. Security and Compliance

The primary differences between E3 and E5 lie in security and compliance.

Feature	Microsoft 365 E3	Microsoft 365 E5
Basic Security Features	Standard Threat Protection	Advanced Threat Protection
Advanced Threat Analytics	Not Included	Microsoft Defender for Office 365
Compliance and eDiscovery	Basic Features	Advanced Features
Insider Risk Management	Not Included	Included

Key Difference: E5 includes Microsoft Defender, advanced compliance tools, and insider risk management for enhanced security.

---

3. Analytics and Business Intelligence

E5 offers advanced tools for analytics and decision-making.

Feature	Microsoft 365 E3	Microsoft 365 E5
Power BI Pro	Not Included	Included
Analytics and Insights	Basic Usage Analytics	Advanced Analytics Tools

Key Difference: E5 includes Power BI Pro for data visualization and analytics.

---

4. Pricing

Pricing is another critical factor in choosing the right plan.

• Microsoft 365 E3: Typically $36/user/month.
• Microsoft 365 E5: Typically $57/user/month.

Key Difference: E5 costs significantly more due to advanced features.

---

Which Plan Is Right for Your Business?

Choose Microsoft 365 E3 if:

• Your business requires core productivity tools.
• Basic security and compliance features meet your needs.
• You are focused on budget-friendly solutions.

Choose Microsoft 365 E5 if:

• Your organization needs advanced security and threat protection.
• You require advanced analytics tools like Power BI Pro.
• Compliance and insider risk management are critical.

---

Need Help Deciding?

Medha Cloud can help you assess your business needs and choose between Microsoft 365 E3 and E5.