Office 365 Plans Compared: E1 vs E3 vs E5 vs Business Options
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04 July 2019 
Office 365,Office 365 Plans
If you’re looking to migrate to the Cloud, the first thing you need to do is choose a proper Office 365 license. There are multiple options available for SME businesses, and finding the right plan that suits your requirements can be quite a task. We have sorted the difference between Business and Enterprise Office 365 plans that will help you in making the right choice.
Here’s the price comparison between Office 365 Business plans and Enterprise licenses:
Office 365 Business Plans:
| Features | Microsoft 365 Business Basic (no Teams) (Formerly Office 365 Business Essentials) | Microsoft 365 Apps for business (Formerly Office 365 Business) | Microsoft 365 Business Standard (no Teams) (Formerly Office 365 Business Premium) | Microsoft 365 Business Premium (no Teams) (Formerly Microsoft 365 Business) |
| Price | $4.75 user/month (Annual commitment) | $8.30 user/month (Annual commitment) | $10.25 user/month (Annual commitment) | $19.75 user/month (Annual commitment) |
| Buy Now | Buy Now | Buy Now | Buy Now | |
| Office applications included in the plan | Outlook, Exchange, Word, Excel, PowerPoint, OneNote | Outlook, Word, Excel, PowerPoint, OneNote, Access, Publisher | Outlook, Exchange, Word, Excel, PowerPoint, OneNote, Access, Publisher | Outlook, Exchange, Word, Excel, PowerPoint, OneNote, Access, Publisher |
| Desktop version of Office apps | No | Yes | Yes | Yes |
| Services include | Exchange, OneDrive for Business, Sites | OneDrive for Business | Exchange, OneDrive for Business, Sites | |
| Custom domain name with 50 GB mailbox | Yes | Yes | ||
| Video conferencing (Max 250 users) | Yes | Yes | Yes | |
| eDiscovery cases | Yes | Yes | Yes | |
| Archiving | Up to 50 GB | No | Up to 50 GB | 1.5 TB |
| Host Webinars | No | No | Yes | Yes |
| Microsoft Bookings | No | No | Yes | Yes |
| Microsoft Lists | Yes | No | Yes | Yes |
| Microsoft Defender for Office 365 | Yes | |||
| Intune | Yes | |||
| Azure Information Protection | Yes |
Office 365 Enterprise Plans:
| Features | Microsoft 365 Apps for enterprise (Formerly Office 365 ProPlus) | Office 365 Enterprise E1 (no Teams) | Office 365 Enterprise E3 (no Teams) | Office 365 Enterprise E5 (no Teams) |
| Price | $12.00 user/month (Annual commitment) | $7.75 user/month (Annual commitment) | $20.75 user/month (Annual commitment) | $35.75 user/month (Annual commitment) |
| Buy Now | Buy Now | Buy Now | Buy Now | |
| Office applications included in the plan | Word, Excel, PowerPoint, OneNote, Publisher, OneDrive for Business, Access | Exchange, OneNote, OneDrive for Business, Sway, Sites, Yammer, Delve, Stream | Word, Excel, PowerPoint, Exchange, OneNote, OneDrive for Business, Access, Sway, Sites, Yammer, Delve, Stream, Publisher | Word, Excel, PowerPoint, Exchange, OneNote, OneDrive for Business, Access, Sway, Sites, Yammer, Delve, Stream, Publisher, Power BI |
| MS Access included in Office | Yes | No | Yes | Yes |
| Office on tablets and phones | 5 tablets/5 phones per user | No | 5 tablets/5 phones per user | 5 tablets/5 phones per user |
| Microsoft Teams | No | Option to add Teams Enterprise at $5.25 u./m. | Option to add Teams Enterprise at $5.25 u./m. | Option to add Teams Enterprise at $5.25 u./m. |
| Unlimited online meetings | No | With add-on Teams Enterprise | With add-on Teams Enterprise | With add-on Teams Enterprise |
| eDiscovery cases | Yes | Yes | Yes | Yes |
| Archiving | No | Up to 50 GB | 1.5 TB | 1.5 TB |
| Microsoft Defender for Office 365 | No | No | No | No |
| Azure Information Protection | No | No | Yes | Yes |
| Office 365 Cloud App Security | No | No | No | Yes |
| Legal Compliance and Archiving | No | No | Yes | Yes |
| Office 365 Advanced Compliance | No | No | No | Yes |
| Shared Computer Activation | Yes | No | Yes | Yes |
| Power BI Pro | No | No | No | Yes |
| Microsoft Viva | No | Yes | Yes | Yes |
| Microsoft Bookings | No | No | Yes | Yes |
| Microsoft Whiteboard | Yes | Yes | Yes | Yes |
| SharePoint Online | No | Plan 1 | Plan 2 | Plan 2 |
| Microsoft Phone System | No | No | No | Yes |
The unit price for each Office 365 Business and Enterprise plan goes from $6 to $38. The costs can shoot up quickly for organizations with a large number of users. However, you can save money if you organize your plan properly taking into consideration the right functionalities you need. Bundling your required services into your license can help you save a lot of money.
Difference Between Enterprise and Business Plans
If an organization has less than 300 users, both Office 365 plans – Business and Enterprise – can be available. As large organizations use Office 365 plans, you might be still wondering which the right Office 365 plan for you is.
Features of Office 365 Enterprise plans:
- Microsoft Teams – PSTN and PBX conferencing is available as E3 & E5 addons
- Advanced Security Protection
- Advanced Directory Integration
- Power BI
- Delve Analytics
- Litigation Hold
- Application management for enterprise
- Advanced Threat Protection
If you are willing to opt for an annual commitment, you can go for the Enterprise plan. But Business plans are also available on a monthly subscription, as well as a yearly subscription.
Key Differences Between Business Premium vs E1 vs E3 vs E5
Choosing the right Microsoft 365 plan depends on your organization’s size, compliance needs, and collaboration requirements. While all four plans provide access to core Microsoft services, their capabilities differ significantly.
- Business Premium is ideal for small to mid-sized businesses (up to 300 users). It offers full Office apps, 1 TB of cloud storage, Microsoft Defender for Office 365, and device management via Intune. However, it lacks some of the advanced compliance and analytics features found in Enterprise plans.
- Office 365 E1 is the most basic enterprise option, providing web-based Office apps, 50 GB mailboxes, and standard email protection. It doesn’t include desktop apps, device management, or advanced security features.
- E3 builds on E1 with desktop apps, 100 GB mailboxes, Intune management, and stronger compliance tools like DLP and rights management.
- E5 includes everything in E3 plus advanced threat protection, Microsoft Purview tools, Power BI Pro, and cloud-based telephony features like PSTN calling.
While Business Premium delivers strong value for SMBs, enterprises looking for scalable collaboration, security, and compliance should evaluate the additional protections and insights available in E3 vs E5.
Comparison of Office 365 Business Plans:
Fundamentally, Office 365 Business plans were made for small and medium businesses (SMEs) that have fewer than 300 users. Office 365 can be overwhelming with a lot of features, and small businesses might not need them all. Thus, they can opt for Office 365 Business plans.
Let’s see how small businesses can use the Office 365 Business plans. Comparison between Office 365 Business plans:
Microsoft 365 Business Basic (no Teams) (formerly Office 365 Business Essentials)
$4.75/user/month – Annual commitment
Preferred by: Small businesses that don’t depend on Office 365 apps too much.
If you want the basic functions of Office 365 without all the bells and whistles, Office 365 Business Essentials is the best plan for you.
What you get in the Office 365 Business Essentials plan:
- 50 GB mailbox email
- Custom email domain address
- Web-based MS Office 2016 – Outlook, Word, Excel, PowerPoint
- 1 TB of OneDrive storage
- SharePoint
- Microsoft Planner
- Yammer to collaborate across departments and locations
- 24/7 technical support via phone, char, and email (Including weekends and U.S. public holidays)
Microsoft 365 Apps for business (Formerly Office 365 Business)
$8.30/user/month – Annual commitment
Preferred by: Small businesses that require only Office 365 apps, online storage, and file sharing
What you get in Office 365 Business plan:
- Desktop-based MS Office 2016 – Outlook, Word, Excel, PowerPoint, OneNote
- Web-based MS Office 2016 – Outlook, Word, Excel, PowerPoint
- OneDrive and 1 TB of OneDrive storage
- 24/7 technical support via phone, char, and email (Including weekends and U.S. public holidays)
Microsoft 365 Business Standard (Formerly Office 365 Business Premium)
$12.50/user/month – Annual commitment
Preferred by: Small businesses that require recent versions of Office 365 applications, preferably desktop versions.
It is the costliest business plan in Office 365. Enterprise E1 is cheaper than Business Premium, so the right choice should be made after looking at all the features.
What you get in the Office 365 Business Premium plan:
- 50 GB mailbox email
- Custom email domain address
- Desktop-based MS Office 2016 – Outlook, Word, Excel, PowerPoint, OneNote
- Web-based MS Office 2016 – Outlook, Word, Excel, PowerPoint
- 1 TB of OneDrive storage
- SharePoint
- Microsoft Planner
- Yammer to collaborate across departments and locations
- 24/7 technical support via phone, char, and email (Including weekends and U.S. public holidays)
Comparison of Office 365 Enterprise Plans:
As the name suggests, Office 365 Enterprise plans are for large enterprises that have more than 300 users. Big companies need more vigorous solutions because their needs are more complicated than those SME. The plans focus more on the needs of enterprise, which heavily focus on compliance and security issues.
Office 365 Enterprise plans offer three plans: E1, E3, E5.
Pricing Comparison of All Office 365 Plans (Annual Commitment)
| Plan Type | Plan Name | Monthly Price (USD) | Notes |
| Business | Microsoft 365 Business Basic | $4.75 | Web/mobile apps, Teams, 1 TB storage. |
| Microsoft 365 Business Standard | $10.25 | Adds desktop apps, webinar tools | |
| Microsoft 365 Business Premium | $19.75 | Advanced security, device management, DLP. | |
| Microsoft 365 Apps for Business | $8.30 | Desktop apps + 1 TB storage (no Teams/email). | |
| Enterprise | Office 365 E1 (no Teams) | $7.75 | Web apps, 1 TB storage, basic compliance. |
| Office 365 E3 (no Teams) | |||
| $20.75 | Desktop apps, 100 GB mailbox, Rights Management | ||
| Office 365 E5 (no Teams) | |||
| $35.75 | Advanced security (Defender XDR), Power BI Pro, voice tools | ||
| Consumer | Microsoft 365 Personal | $6.99 | 1 TB storage, premium features (varies by region). |
| Microsoft 365 Family | $9.99 | 6 TB shared storage, family sharing. |
Let’s see the comparison between Office 365 Enterprise plans:
Office 365 Enterprise E1 (no Teams)
$7.75/user/month – Annual commitment
Preferred by: Enterprises that need features like data governance, but very limited use of MS Office applications
If you want to opt for an Enterprise plan within your budget, opt for the Enterprise E1 plan. This costs less than the Business Premium plan while allowing the benefits of an enterprise plan.
What you’ll get in the Office 365 Enterprise E1 plan:
- Email 50 GB mailbox (only accessible from Outlook online)
- Microsoft Teams for web conferencing, Instant Messaging, online meetings, and presence (Option to add Teams Enterprise at $5.25 u./m.)
- OneDrive for Business
- Yammer
- SharePoint
- Video Sharing
- 1 TB OneDrive storage, File sharing
- HD video conferencing
- Team sites
- eDiscovery search
- Data Governance
Office 365 E1 vs Business Plans
The primary difference between E1 and Microsoft 365 Business plans is scale. E1 supports unlimited users, while Business plans are limited to 300. E1 includes only web apps, whereas Business Standard and Premium provide full desktop versions.
From a security perspective, Business Premium outpaces E1 with endpoint protection, Intune device management, and advanced DLP. E1 supports a far greater number of SharePoint site collections, making it more suitable for enterprise-wide intranet use.
For basic needs, Business Basic works well with web apps. Business Premium suits SMBs requiring strong security and full-featured apps. Compare Office 365 E1 vs Business Premium to align with your app usage, compliance needs, and user management preferences.
Difference Between Business Premium and Enterprise E1:
- Email can be accessed only via the online app in the Enterprise E1 plan
- There are no desktop versions of MS Office in the E1 plan, only web-based versions
Office 365 Enterprise E3 (no Teams)
$20.75/user/month – Annual commitment
Preferred by: Enterprises that need features like security, compliance, business intelligence, and voice capabilities.
At best, the E3 plan can be compared to the Business Premium plan because of similar features.
All the features of the Enterprise E1 plan are included in the E3 plan as well. In addition to that, here’s what you’ll get in the Office 365 Enterprise E3 plan:
- Office Client Apps
- Legal compliance
- Information protection: Email Encryption, Rights Admin, DLP
- Azure Rights Management and functions of doc management – Email Encryption, Rights Admin, DLP, Document Encryption
- Email storage for in-place archive
- Unlimited OneDrive storage
- eDiscovery legal hold
- eDiscovery export and case management
- Support for hosted voicemail
There are more features like Exchange Online Archiving, unified eDiscovery, PSTN adding, rights management, DLP, and encryption in the Enterprise E3 plan in comparison with the Business Premium plan.
Office 365 Enterprise E5 (no Teams)
$35.75/user/month – Annual commitment
Preferred by: The costliest Office 365 plan. Enterprises that need all the features of E1 and E3 plan. With the E5 plan, you get all the consolidated features available in Office 365.
All the features of the Enterprise E1 & E3 plans are included in the Enterprise E5 plan as well. In addition to that, here’s what you’ll get in Office 365 Enterprise E5 plan:
- Enhanced security features
- Microsoft’s Business Intelligence tools for end-user organizational analytics
- Office 365 Cloud App Security
- Cloud PBX
- Microsoft Teams (Option to add Teams Enterprise at $5.25 u./m.)
- Unlimited OneDrive storage
- PSTN conferencing to dial into Teams meetings from anywhere
- Call management in the cloud
- Advanced analytics with Power BI Pro and Microsoft MyAnalytics
- Advanced eDiscovery
- Advanced-Data Governance and Audit
- Advanced security with Advanced Threat Protection and Customer Lockbox
- Data loss prevention for Microsoft Teams chat and channel messages
- Advanced control and presence of Office 365 environment
Microsoft 365 Apps for enterprise (Formerly Office 365 ProPlus)
$12/user/month – Annual commitment
Preferred by: Enterprises that don’t really have an email in focus but want compliance and BI features, and who use MS Office on mobile.
- File sharing and 1 TB OneDrive online document storage
- Fully installed Office on PC/Mac
- Office apps on tablets and phones
- Self-service BI in Excel
- Office Online: Create, view, and edit rights for online versions of core Office apps for collaborating on documents
- eDiscovery search
- On-premises AD sync for single sign-on
- Mobile device management
Choosing the Right Office 365 Plan for Your Business
With multiple plans available, finding the right fit depends on your team’s size, compliance expectations, and IT capabilities.
- User Count: Business plans cap at 300 users; Enterprise plans scale beyond.
- Security & Compliance: E3/E5 offer advanced controls and data protection.
- Remote Work Support: Plans with Teams, cloud storage, and mobile apps enable hybrid setups.
- IT Management: Business Premium and Enterprise plans offer device and identity tools.
- Budget Considerations: Business plans cost less, while Enterprise plans offer better long-term value for growing needs.
Evaluate whether you need essentials or more robust governance tools by comparing O365 E1 vs E3 or Business Premium vs E3 vs E5 to guide your decision.
Microsoft 365 Add-ons and Customization Options
Beyond the base plans, Microsoft 365 lets you tailor your experience with add-ons that boost security, collaboration, and insights.
Need enterprise voice? Add Teams Phone to enable PSTN calling, voicemail, and auto attendants. Since Teams is no longer bundled with some plans, it must be licensed separately.
Security-conscious businesses can add Microsoft Defender for Office 365 or Defender for Endpoint to enhance protection against phishing, ransomware, and advanced threats.
For data-driven teams, Power BI Pro delivers real-time analytics, dashboards, and cross-department collaboration.
These add-ons offer flexibility to extend capabilities without switching plans. Apps4Rent can help you assess which enhancements best match your goals and budget.
Pros and Cons of Office 365 Plans
| Pros | Cons |
| Pay-as-you-go flexibility | Complex plan differences can confuse buyers |
| Real-time collaboration tools | Some advanced features require training |
| Strong built-in security | Users may store files locally, limiting visibility |
| Flexible licensing by user role | Business plans limited to 300 users |
| Automatic app updates | Frequent updates may affect legacy systems |
Apps4Rent offers 24/7/365 support for all end users when you purchase your Microsoft 365 subscription through us. In contrast, buying directly from Microsoft often involves longer support wait times, which can become frustrating in the long run.
Common Upgrade Scenarios and Use Cases
Organizations often outgrow their current Microsoft 365 plans as business needs evolve. Below are typical upgrade paths driven by growth, regulatory needs, or enhanced functionality.
- Scaling from Business to Enterprise Plans
Businesses approaching the 300-user cap of Microsoft 365 Business Premium often move to Enterprise E3 or E5 to support unlimited users, meet advanced compliance needs, or adopt tools like Microsoft Copilot.
- Enhancing Security Posture
Firms using E3 may upgrade to E5 to strengthen their security with features like Microsoft Defender XDR, Insider Risk Management, and Customer Lockbox—ideal for industries with high-risk data environments.
- Enabling Enterprise Voice Solutions
To support advanced voice needs such as PSTN calling, auto attendants, and call queues, many organizations pair E5 with Teams Phone. This setup turns Teams into a full-featured business phone system.
- Meeting Compliance and Legal Requirements
Enterprises concerned with legal preparedness and data governance often upgrade from E3 to E5 to gain access to tools like Advanced eDiscovery, Audit, and Communication Compliance in Microsoft Purview.
Frequently Asked Questions
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What distinguishes Microsoft 365 E3 from E5?
E3 includes full Office apps, core security features, and standard compliance tools. E5 adds advanced protection with Microsoft Defender XDR, Azure AD Premium P2, Power BI Pro, Teams Phone with PSTN, and enterprise-grade compliance capabilities like Insider Risk Management.
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Which features are exclusive to the E5 plan?
E5 offers advanced threat protection, cloud app security, Power BI Pro, Teams Phone, and compliance tools such as Customer Lockbox and Advanced eDiscovery, features not available in E3.
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Is Microsoft 365 E5 a better option than Business Premium?
E5 is best for enterprises needing extensive security, analytics, and compliance support. Business Premium is designed for SMBs, providing core productivity tools and strong built-in security at a lower cost. Your choice should depend on your organization’s size, risk profile, and regulatory needs.
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What do users get with an E5 license?
E5 users gain access to the full Microsoft 365 suite, including Microsoft Defender XDR, Power BI Pro, Azure AD Premium P2, Teams Phone, and compliance features like DLP, Advanced Auditing, and Customer Lockbox.
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Can I upgrade from E3 to E5?
Yes. Upgrading from E3 to E5 is seamless, with no data loss or service disruption. User data, settings, and configurations remain intact.
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Can different employees have different license types?
Yes. You can assign different license types across users. For example, finance and compliance teams might use E5 for advanced reporting and security, while frontline or support staff can use E3 or Business Premium.
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Are E5 and Business Premium the same?
No. Business Premium is limited to 300 users and includes productivity apps, Defender for Office 365, and Intune. E5 has no user cap and includes broader tools like Power BI Pro, Teams Phone, and enterprise-level compliance features.
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Are discounts available for nonprofits or educational institutions?
Yes. Microsoft offers reduced pricing for eligible nonprofits and academic organizations. Nonprofits, for instance, may be eligible for E5 licenses at significantly discounted rates.
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What happens to my data when switching plans?
Your data is preserved when changing plans. However, if you downgrade, you may lose access to features not included in the new plan such as Power BI Pro or advanced compliance tools.
If you are still wondering what’s the right Office 365 plan for you, talk to our Sales team. We’ll understand your requirements, and propose the best possible solution for you.
Apps4Rent – Tier 1 Office 365 Cloud Solution Provider
