Microsoft 365 E5
Full security, compliance & analytics — the enterprise security powerhouse
In this guide
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Who Is Microsoft 365 E5 For?
E5 is the security-first enterprise plan. If your organisation handles sensitive data, faces regulatory requirements, or wants to consolidate multiple security vendors into one Microsoft stack — E5 is your plan.
E5 is right for you if:
- ✅ You need advanced threat protection — full EDR, threat hunting, automated investigation
- ✅ You’re in a regulated industry — finance, healthcare, government, legal
- ✅ You want Teams Phone — replace your PBX with cloud calling
- ✅ You need Power BI Pro for every user
- ✅ You want to replace third-party CASB, DLP, or SIEM tools with Microsoft’s suite
- ✅ You need Privileged Identity Management (PIM) for admin access control
You might not need E5 if:
- ❌ Basic antivirus and conditional access is enough (E3 covers that)
- ❌ You don’t use Teams for phone calls
- ❌ Budget is the primary concern
What E5 Adds Over E3
Think of E5 as E3 + the full security/compliance/analytics upgrade:
flowchart LR
E3["M365 E3
$39/mo
Productivity + Basic Security"]
E5["M365 E5
$60/mo
E3 + Advanced Everything"]
SEC["️ Security Upgrade
Defender P2 (EDR)
Entra ID P2 (PIM)
CASB
Identity Protection"]
COMP["Compliance Upgrade
Insider Risk Mgmt
eDiscovery Premium
Advanced Audit
Endpoint DLP"]
ANA["Analytics + Voice
Power BI Pro
Teams Phone
Audio Conferencing"]
E3 -->|"+$21/mo"| E5
E5 --> SEC
E5 --> COMP
E5 --> ANA
Security Features — The E5 Advantage
| Feature | E3 | E5 | Plain English |
|---|---|---|---|
| Entra ID P1 (Conditional Access) | ✅ | ✅ | Control who logs in and from where |
| Entra ID P2 (PIM, risk-based) | ❌ | ✅ | Just-in-time admin access, auto-detect risky sign-ins |
| Defender for Endpoint P1 | ✅ | ✅ | Basic endpoint antimalware |
| Defender for Endpoint P2 (full EDR) | ❌ | ✅ | Threat hunting, automated investigation, forensics timeline |
| Defender for Office 365 P1 | ✅ | ✅ | Safe Links and Attachments |
| Defender for Office 365 P2 | ❌ | ✅ | Attack simulation, auto-remediation, threat trackers |
| Defender for Identity | ❌ | ✅ | Detect credential theft and lateral movement in AD |
| Defender for Cloud Apps (CASB) | ❌ | ✅ | Shadow IT discovery, SaaS app control, real-time monitoring |
💡 The “replace your third-party tools” story: E5 can replace standalone CASB (like Netskope), EDR (like CrowdStrike), and SIEM (partially, with Sentinel integration). Do the maths — you might save money.
Compliance Features
| Feature | E3 | E5 | Why It Matters |
|---|---|---|---|
| DLP (Basic) | ✅ | ✅ | Stop accidental data leaks |
| DLP (Advanced + Endpoint DLP) | ❌ | ✅ | Block USB copy, screen capture, printing of sensitive docs |
| eDiscovery (Standard) | ✅ | ✅ | Legal hold and content search |
| eDiscovery (Premium) | ❌ | ✅ | Machine learning, predictive coding, custodian management |
| Insider Risk Management | ❌ | ✅ | Auto-detect data theft by leavers, policy violations |
| Communication Compliance | ❌ | ✅ | Monitor Teams/Outlook for code of conduct violations |
| Audit (Standard, 90 days) | ✅ | ✅ | Track user actions |
| Audit (Advanced, up to 10 years) | ❌ | ✅ | Long-term retention for regulatory compliance |
Analytics & Voice
| Feature | E3 | E5 |
|---|---|---|
| Power BI Pro | ❌ | ✅ |
| Teams Phone System | ❌ | ✅ |
| Audio Conferencing | ❌ | ✅ |
| Windows Enterprise E5 | ❌ | ✅ |
E3 vs E5 vs E7 — The Full Picture
flowchart LR
E3["E3
$39/mo
Productivity
+ Basic Security"]
E5["E5
$60/mo
E3 + Advanced
Security & Compliance"]
E7["E7
$99/mo
E5 + Copilot
+ Agent 365 + Entra Suite"]
E3 -->|"+$21"| E5
E5 -->|"+$39"| E7
| What You Get | E3 ($39) | E5 ($60) | E7 ($99) |
|---|---|---|---|
| Desktop Office Apps | ✅ | ✅ | ✅ |
| Full Security Suite | Basic | Advanced | Advanced |
| Full Compliance Suite | Basic | Advanced | Advanced |
| Teams Phone | ❌ | ✅ | ✅ |
| Power BI Pro | ❌ | ✅ | ✅ |
| Microsoft 365 Copilot | ❌ | ❌ | ✅ |
| Agent 365 | ❌ | ❌ | ✅ |
| Full Entra Suite | ❌ | Partial | ✅ |
Common Add-Ons for E5
E5 already includes most security and compliance features, but some organisations still add:
| Need | Add-On | Price |
|---|---|---|
| AI assistant in Office apps | Microsoft 365 Copilot | +$30/user/mo |
| Advanced endpoint management | Intune Suite | +$10/user/mo |
| Employee experience | Viva Suite | +$12/user/mo |
| Full Entra Suite (ZTNA, Internet Access) | Entra Suite | Varies |
💡 Tip: If you’re on E5 and adding the $30 Copilot add-on ($90 total), compare that to E7 at $99 — you get Copilot PLUS Agent 365 and the full Entra Suite for just $9 more.
Frequently Asked Questions
1. What does Microsoft 365 E5 include that E3 doesn’t?
E5 adds Entra ID P2 (PIM), Defender for Endpoint P2 (full EDR), Defender for Office 365 P2, Insider Risk Management, eDiscovery Premium, Teams Phone System, Power BI Pro, Audio Conferencing, and advanced DLP with endpoint DLP.
2. Is Microsoft 365 E5 worth the extra cost over E3?
If you need advanced security (EDR, CASB, identity protection), Teams Phone, Power BI, or are in a regulated industry — yes. E5 replaces multiple third-party tools. If you only need basic security, E3 is sufficient.
3. Does E5 include Copilot?
No. Copilot is a $30/user/month add-on even for E5. The only plan with Copilot included is M365 E7 ($99/user/month), which also adds Agent 365 and the full Entra Suite.
4. Can I mix E3 and E5 licences in the same tenant?
Yes. Most organisations give E5 to security teams, executives, and high-risk users, while general staff get E3.
5. Should I upgrade from E5 to E7?
If you’re already buying the Copilot add-on ($30) for E5 users ($90 total), E7 at $99 adds Agent 365 ($15 value) and the full Entra Suite for just $9 more. That’s a strong case for organisations committed to AI.
6. Does E5 include Microsoft Sentinel?
No. Microsoft Sentinel (SIEM) is a separate consumption-based Azure service. E5 includes the Defender XDR suite (endpoint, email, identity, cloud apps) but not the SIEM.