Microsoft 365 E5 vs E3 vs Business Premium Compared

Microsoft offers a confusing array of 365 licensing options. Business Basic, Business Standard, Business Premium, E1, E3, E5 — how is anyone supposed to know which one they need?

Let’s cut through the noise with a plain-English comparison focused on what actually matters for a small or mid-sized business.

The Quick Summary

Business Premium — Best for businesses under 300 users that need Office apps + basic security. Good starting point, but missing advanced threat protection and compliance tools.

E3 — Full desktop Office apps, advanced compliance features, but lacks the security tools that modern businesses need.

E5 — Everything in E3, plus Microsoft’s full enterprise security suite: Defender for Office 365 Plan 2, Azure AD Premium P2, Power BI Pro, audio conferencing, eDiscovery, and advanced compliance. This is the plan that gives you a real security posture.

Why E5 Matters for Security

The jump from E3 to E5 is primarily about security. Here’s what you get in E5 that you don’t get in E3 or Business Premium:

• Microsoft Defender for Office 365 Plan 2 — Advanced anti-phishing, safe links, safe attachments, attack simulation training, and threat investigation
• Azure AD Premium P2 — Identity Protection with risk-based conditional access, Privileged Identity Management
• Microsoft Defender for Endpoint Plan 2 — EDR capabilities built into Windows
• Microsoft Defender for Identity — Detects identity-based attacks using Active Directory signals
• Power BI Pro — Business intelligence for every user
• Audio Conferencing — Dial-in numbers for Teams meetings
• eDiscovery — Legal hold, content search, and compliance tools

The Cost Reality

Microsoft 365 E5 retails at $57/user/month. That’s significant for a small business. But here’s the math most people miss: the security tools included in E5 would cost $30-40/user/month to replicate with third-party solutions.

When you factor in the security coverage, E5 is often cheaper than E3 + security add-ons.

What CyferTech Clients Get

All CyferTech managed IT clients receive Microsoft 365 E5 — fully deployed, configured, and managed — as part of the $175/user/month managed IT plan. That includes email migration, Teams deployment, SharePoint setup, Intune device management, and ongoing security hardening.

Not sure what plan you’re currently on or whether it’s configured correctly? Get a free Microsoft 365 assessment →

Not sure which Microsoft 365 plan is right for you? CyferTech’s Cloud Services team helps San Diego businesses choose and deploy the right Microsoft 365 plan. Talk to an expert today.