Office 365 E1
Web & mobile apps + email + Teams — the budget enterprise starting point
In this guide
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Who Is Office 365 E1 For?
E1 is the cheapest enterprise plan with no user limit — for organisations that need email, Teams, and cloud storage but don’t need desktop Office apps or the security suite.
E1 is right for you if:
- ✅ Your team works primarily in web browsers or on mobile devices
- ✅ You need email (50 GB), Teams, SharePoint, and OneDrive at the lowest enterprise cost
- ✅ You have 300+ users (no upper limit — unlike Business plans)
- ✅ Desktop Office apps are not required (or provided separately via Microsoft 365 Apps)
- ✅ Security is handled by separate products (standalone Defender, Intune, etc.)
E1 is probably not enough if:
- ❌ Users need desktop Word, Excel, or PowerPoint — upgrade to O365 E3 ($26)
- ❌ You want security + device management — upgrade to M365 E3 ($39)
- ❌ You want Copilot — E1 is not eligible; minimum is M365 E3
- ❌ You have under 300 users — Business Basic ($7) is $3/user cheaper
⚠️ “Microsoft 365 E1” doesn’t exist. If you’re searching for “M365 E1”, you’re probably looking for either this page (Office 365 E1) or Microsoft 365 E3 — the lowest plan in the Microsoft 365 enterprise suite.
What’s Included in Office 365 E1
📧 Productivity & Communication
| Feature | What You Get |
|---|---|
| Web & Mobile Office Apps | Word, Excel, PowerPoint, Outlook — browser and iOS/Android only |
| Exchange Online | 50 GB mailbox + 50 GB archive, shared mailboxes, custom domain email |
| Microsoft Teams | Chat, video meetings, screen sharing, webinars |
| SharePoint Online | Team sites, document libraries, intranet |
| OneDrive for Business | 1 TB cloud storage per user |
| Microsoft Forms | Surveys, quizzes, and polls |
| Microsoft Planner | Task management boards |
| Microsoft Stream | Video hosting and sharing |
| Microsoft Bookings | Online appointment scheduling |
⚠️ What E1 Does NOT Include
| Missing Feature | Where To Get It |
|---|---|
| Desktop Office apps | O365 E3 ($26) or M365 E3 ($39) |
| Intune / device management | M365 E3 ($39) |
| Entra ID P1 / Conditional Access | M365 E3 ($39) |
| Defender for Endpoint | M365 E3 ($39) or standalone |
| DLP / Sensitivity Labels | O365 E3 ($26) |
| Microsoft 365 Copilot | Not eligible — need M365 E3 base |
E1 vs E3 vs M365 E3 — The Upgrade Path
flowchart LR
E1["O365 E1
$10/mo
Web apps + email"]
E3["O365 E3
$26/mo
+ Desktop apps
+ basic compliance"]
M3["M365 E3
$39/mo
+ Security
+ Windows"]
M5["M365 E5
$60/mo
+ Advanced security"]
E1 -->|"+$16"| E3
E3 -->|"+$13"| M3
M3 -->|"+$21"| M5
| Feature | E1 ($10) | O365 E3 ($26) | M365 E3 ($39) | M365 E5 ($60) |
|---|---|---|---|---|
| Web & Mobile Office Apps | ✅ | ✅ | ✅ | ✅ |
| Desktop Office Apps | ❌ | ✅ | ✅ | ✅ |
| Exchange mailbox | 50 GB | 100 GB | 100 GB | 100 GB |
| Teams, SharePoint, OneDrive | ✅ | ✅ | ✅ | ✅ |
| DLP + Sensitivity Labels | ❌ | ✅ | ✅ | ✅ |
| Intune + Entra ID P1 | ❌ | ❌ | ✅ | ✅ |
| Defender for Endpoint | ❌ | ❌ | P1 | P2 |
| Windows Enterprise | ❌ | ❌ | ✅ | ✅ |
| Teams Phone + Power BI | ❌ | ❌ | ❌ | ✅ |
| Copilot eligible | ❌ | ❌ | ✅ | ✅ |
💡 The honest recommendation: E1 saves money ($10 vs $39) but you lose desktop apps, security, and Copilot eligibility. Most IT admins recommend M365 E3 for new enterprise deployments — it’s the complete package.
E1 vs Business Basic — Which Budget Plan?
| Feature | Business Basic ($7) | Office 365 E1 ($10) |
|---|---|---|
| Web & Mobile Apps | ✅ | ✅ |
| Exchange (50 GB) | ✅ | ✅ |
| Teams, SharePoint, OneDrive | ✅ | ✅ |
| User limit | 300 max | Unlimited |
| Archive mailbox | ❌ | ✅ (50 GB) |
| eDiscovery | ❌ | Basic |
| Price difference | $3/user cheaper | $3/user more |
💡 Decision rule: Under 300 users → Business Basic ($7). Over 300 or need archive/eDiscovery → E1 ($10).
Frequently Asked Questions
1. Does Office 365 E1 include desktop Office apps?
No. E1 only includes web and mobile versions of Office apps. For desktop apps (installed Word, Excel, etc.), you need Office 365 E3 ($26) or Microsoft 365 E3 ($39).
2. What is the difference between Office 365 E1 and Microsoft 365 Business Basic?
They’re very similar — both offer web apps, email, and Teams. Business Basic ($7) is cheaper but capped at 300 users. E1 ($10) has no user limit and is designed for enterprises.
3. Is there a Microsoft 365 E1?
No. There is no “Microsoft 365 E1” product. The entry-level enterprise plan is Office 365 E1 (productivity only). For the full Microsoft 365 suite with security, the lowest enterprise plan is Microsoft 365 E3 ($39).
4. Can I add Copilot to Office 365 E1?
No. Microsoft 365 Copilot requires Microsoft 365 E3, E5, Business Standard, or Business Premium as a base plan. Office 365-only plans are not eligible.
5. Is Office 365 E1 being retired?
No. E1 remains available and is still sold through EA, CSP, and Web Direct. It’s valid for cost-conscious enterprises that don’t need desktop apps or the security suite.
6. What mailbox size does E1 provide?
Office 365 E1 provides a 50 GB Exchange mailbox per user, plus 50 GB archive mailbox. This is the same as Business Basic but half of the 100 GB in Office 365 E3.