Guide

Microsoft 365 E3 vs E5

E3 combines enterprise productivity, Windows and device management. E5 adds further security, compliance and analytics capabilities. Choose against the features your people need, the tools you already own and the full renewal cost. A larger headcount alone does not make E5 the better purchase.

Microsoft product sources checked 22 September 2026. Catalogue prices below are indicative, excluding VAT and shown on annual upfront terms. Confirm the exact offer and Teams variant before comparing costs.

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The practical difference between E3 and E5

Start with the work your IT team needs the suite to support. Both are enterprise products; E5 expands the capability set rather than being a requirement triggered by a particular headcount.

Decision area	What to establish
Productivity and devices	The Office apps, Windows and management rights needed by each group.
Security and compliance	The specific controls needed and any overlapping products already purchased.
Analytics	Which people need Power BI rights, and which rights they need.
Collaboration and calling	The exact Teams variant, phone entitlements and separate connectivity costs.
Delivery	Who will configure, operate and support the chosen features.

Use Microsoft's UK enterprise comparison as the product reference, then document your own requirements. This is a buying checklist, not a complete use-rights assessment.

Compare the full licence cost on matching terms

Our current catalogue entries provide a starting point:

Product	Monthly equivalent, ex VAT	One licence paid annually, ex VAT
Microsoft 365 E3	£30.82	£369.84
Microsoft 365 E5	£47.47	£569.64

These are annual commitments paid upfront. Your written quote confirms the exact product, Teams variant, eligibility and total including VAT. A lower-priced no-Teams offer is not the same package as a suite that includes Teams.

Compare the complete proposed basket against your existing written renewal. List retained add-ons, proposed removals, implementation and any overlap in commitments. Do not count a possible cancellation as a saving until the change and effective date have been agreed.

Dead Simple 365 offers annual commitment paid upfront or monthly commitment paid monthly, where available. We do not offer annual commitment paid monthly.

When to examine E5 or an add-on instead

Ask your IT team to identify the required capabilities before selecting the higher suite. E5's current product page lists capabilities including Entra ID P2, Defender for Endpoint P2, Defender for Office 365 P2 and Power BI Pro. See Microsoft's E5 feature detail.

If only part of the organisation needs additional rights, compare the eligible suite and add-on options for that group. Avoid assuming that licensing a few administrators grants every user the same rights. Record the affected users, existing licences and intended feature for confirmation.

Also check whether your existing tools already meet the requirement, when their contracts renew and who will implement any replacement. A licence purchase does not complete that work.

Keep Office 365 E3 distinct from Microsoft 365 E3

Office 365 E3 and Microsoft 365 E3 are separate products. Microsoft 365 brings together the productivity suite, Windows Enterprise and enterprise mobility/security components. Office 365 E3 is a different productivity-focused package. See Microsoft's enterprise overview.

Copy the full product names from the current licence list. Include separate Windows, identity, device-management and security licences when comparing the total. Choosing a cheaper line with a similar name can remove rights your organisation relies on.

Check Teams and Copilot without relying on old assumptions

Microsoft's November 2025 licensing update made enterprise suites with Teams available again to new and existing customers. With-Teams and no-Teams remain distinct offers. Check the exact variant and any existing standalone Teams subscription.

For calling, establish Teams Phone rights and the separate PSTN arrangement. For AI, distinguish Copilot Chat from the Microsoft 365 Copilot add-on. Microsoft's Copilot licensing guidance explains those different experiences. Include the requirements in the quote rather than treating the word E5 as proof that every related service is included.

Prepare a renewal review for 100 or more licences

A useful review pack needs these details:

Exact products and quantities, including Teams variants, add-ons and optional changes.
Existing commitment and renewal dates for each subscription, with current written rates if you want a cost comparison.
User requirements, grouped by the features and rights needed rather than job titles alone.
Existing tools and agreements, including any purchasing agreement or service partner you intend to retain.
Support responsibilities, including the administrator contact and escalation arrangement your team needs.

Start with the existing quote builder or its supported Microsoft CSV import. An optional connected licence review gives allocation counts, not invoice prices, actual usage or a security assessment.

Our team checks the proposed supply route and sends a written quote. Licence-only orders are welcome. Requesting the review does not place an order, cancel your current subscription or change your tenant.

Common questions.

Is Microsoft 365 E5 better value than E3?

Compare the required features and the complete renewal basket. E5 may be relevant where its additional capabilities replace products you need, but existing contracts, implementation work and the users requiring those rights affect the result. There is no universal saving.

Does a 100-person business need enterprise licences?

Headcount alone does not decide the product. Compare Business and enterprise plans against your actual requirements and applicable limits. An existing Business Premium estate should be reviewed on its needs, rather than automatically moved to E3 or E5.

Can we mix E3 and E5 licences?

Request the mix your users need and have the exact rights checked. Each person using or benefiting from a licensed capability needs the appropriate entitlement. A small number of higher-tier licences does not automatically cover the whole organisation.

Can we keep our IT team and Microsoft tenant?

You can request licence-only supply while retaining your IT team. We check the existing tenant, commitments, purchasing arrangement and applicable handover before confirming supply. Migration and additional technical work are agreed separately where needed.

Can the free review tell us which E5 features people use?

No. The connected review reads licence allocation counts. It does not measure activity, feature adoption, invoice costs or security configuration. Your IT team supplies requirements and contract information for the licensing decision.

Your licences. Your next step.

Build your licence list and we confirm prices and terms by email. Licence-only customers are welcome; a review or support service is optional.

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Operated by Dead Simple Computing Ltd, a UK Microsoft 365 reseller. Per user per month, ex VAT. Business customers only.