Microsoft 365 E3

Who Is Microsoft 365 E3 For?

Microsoft 365 E3 is the most popular enterprise plan — and for good reason. It’s the plan most IT admins recommend when an organisation outgrows Business Premium (300-user cap) or needs proper enterprise security and device management.

E3 is right for you if:

• ✅ You have 300+ users (no upper limit)
• ✅ You need desktop Office apps on every device
• ✅ You want Intune for device management (no SCCM-only environments)
• ✅ You need Conditional Access to control who can access what, and from where
• ✅ You want basic compliance — DLP, retention policies, eDiscovery
• ✅ You’re running Windows 11 Enterprise across the org

E3 is probably NOT enough if:

• ❌ You need Teams Phone (PSTN calling) — that’s E5 or a separate add-on
• ❌ You need advanced threat hunting (Defender for Endpoint P2) — that’s E5
• ❌ You’re in a heavily regulated industry needing Insider Risk Management — that’s E5 or Purview add-on
• ❌ You want Copilot included (not as an add-on) — that’s E7

What’s Inside Microsoft 365 E3?

Think of E3 as three products bundled together:

flowchart LR
    E3["Microsoft 365 E3
$39/user/mo"]
    O365["Office 365 E3
Apps + Email + Teams"]
    EMS["EMS E3
Intune + Entra ID P1"]
    WIN["Windows E3
Enterprise + Defender P1"]
    E3 --> O365
    E3 --> EMS
    E3 --> WIN

📧 Productivity & Communication

🔐 Security & Identity

💡 New in 2026: Defender for Office 365 Plan 1 is now included in E3 at no extra cost (previously a paid add-on). This is a significant security upgrade.

📱 Device Management

📋 Compliance & Governance

E3 vs E5 — What’s the Difference?

This is the #1 question IT admins ask. Here’s the honest answer:

flowchart LR
    E3["E3
$39/mo"]
    E5["E5
$60/mo"]
    DIFF["E5 Adds:
Entra ID P2 (PIM)
Defender P2 (EDR)
Insider Risk Mgmt
eDiscovery Premium
Teams Phone
Power BI Pro
Audio Conferencing"]
    E3 -->|"+$21/mo"| E5
    E5 --- DIFF

💡 Rule of thumb: If you need Teams Phone, Power BI, or are in a regulated industry — go E5. Otherwise, E3 covers 80% of enterprise needs.

Office 365 E3 vs Microsoft 365 E3 — What’s the Difference?

This is the second most confusing licensing question. Here’s the simple version (see the full Office 365 E3 guide for details):

flowchart LR
    O365["Office 365 E3
$26/mo
Apps + Email + Teams"]
    M365["Microsoft 365 E3
$39/mo
Everything in O365 E3
+ Security + Windows"]
    EXTRA["M365 E3 Adds:
Intune P1
Entra ID P1
Defender for Endpoint P1
Windows 11 Enterprise E3
Information Protection"]
    O365 -->|"+$13/mo"| M365
    M365 --- EXTRA

In short: Microsoft 365 E3 = Office 365 E3 + Windows + Security. The extra $13/user/month gets you Intune, Entra ID P1, Defender, and Windows Enterprise. For most organisations, this is worth it.

Common Add-Ons for E3

If E3 almost covers your needs but you need one more thing, here are the most common add-ons:

💡 Tip: If you’re adding 3+ add-ons to E3, do the maths — E5 at $60/mo might be cheaper than E3 ($39) plus individual add-ons. And if you want Copilot, check E7 at $99/mo — it includes Copilot, Agent 365, and the full Entra Suite.

Pricing History & What’s Coming

Frequently Asked Questions

1. What is included in Microsoft 365 E3?

Microsoft 365 E3 includes desktop Office apps (Word, Excel, PowerPoint, Outlook), Exchange Online with 100 GB mailbox, Teams, SharePoint, OneDrive, Entra ID P1, Intune P1, Defender for Endpoint P1, Defender for Office 365 P1, Windows 11 Enterprise E3, and basic compliance tools like DLP and eDiscovery.

2. How much does Microsoft 365 E3 cost?

Microsoft 365 E3 costs $39 per user per month (USD list price). From July 2026, this price applies to new customers and renewals. Enterprise Agreement and CSP pricing may differ.

3. What is the difference between Microsoft 365 E3 and E5?

E5 adds advanced security (Defender P2, Entra ID P2), advanced compliance (Insider Risk, eDiscovery Premium), Teams Phone System, Power BI Pro, and Audio Conferencing. E5 costs $60/user/month vs E3’s $39.

4. What is the difference between Office 365 E3 and Microsoft 365 E3?

Microsoft 365 E3 includes everything in Office 365 E3 PLUS Windows 11 Enterprise E3, Enterprise Mobility + Security E3 (Intune P1, Entra ID P1), and Defender for Endpoint P1. Microsoft 365 E3 is the more complete package.

5. Should I upgrade from E3 to E5 or E7?

If you need advanced security (EDR, CASB, PIM) or Teams Phone — upgrade to E5 ($60). If you also want Copilot, Agent 365, and the full Entra Suite — go directly to E7 ($99). If you only want Copilot, add it as a $30 add-on to E3.

6. Can I add Copilot to Microsoft 365 E3?

Yes. Microsoft 365 Copilot is available as a $30/user/month add-on for E3 ($69 total). Alternatively, M365 E7 ($99) includes Copilot plus Agent 365 and the full Entra Suite.