E3 versus E5 is the most common Microsoft licensing question we get from growing enterprises. Both include the full Office suite, Exchange, SharePoint, and Teams. The difference is everything wrapped around security and compliance.
What E5 adds over E3
- Microsoft Defender for Office 365 and Defender for Endpoint
- Entra ID P2 with identity protection and privileged access management
- Advanced compliance: eDiscovery, DLP, insider risk, and audit
- Teams Phone system and audio conferencing
- Power BI Pro and advanced analytics
When the upgrade pays off
If you would otherwise buy Defender, Entra P2, and a third-party phone system separately, E5 is usually cheaper bundled. If you don't need those, E3 plus targeted add-ons is more economical.
Buy E5 for the security stack, not the logo. If you won't switch on the features, you're paying for shelfware.
RM
Rohan Malhotra
Microsoft Licensing Consultant
Part of the TechWorld Solutions team helping enterprises migrate, modernize, and secure their technology.