MICROSOFT 365 ENTERPRISE LICENSING
Microsoft 365 Enterprise is a suite of productivity, collaboration, and security tools designed for organizations that need advanced capabilities across their workforce. It combines Office 365 apps, Windows 11 Enterprise, and Enterprise Mobility + Security (EMS) into a single subscription. This guide focuses on the two most widely used enterprise plans, Microsoft 365 E3 and Microsoft 365 E5, to help you understand what each offers and how to choose the right one for your organization.
Microsoft 365 E3
(No Teams)*
Best for: Organizations that need core productivity tools, device management, and baseline security.
Includes:
- Office apps (Word, Excel, PowerPoint, Outlook, etc.)
- Exchange Online Plan 1
- SharePoint Online Plan 1
- OneDrive for Business (1 TB per user)
- Windows 11 Enterprise E3
- Microsoft Intune and Azure AD Premium P1
- Basic compliance tools (eDiscovery, retention policies)
Month to Month Commitment
$40.56
per user/month
Annual Commitment
(pay monthly)
$35.49
per user/month
Annual Commitment
(pay upfront)
$33.80
per user/month
$405.60
per user/year
Microsoft 365 E5
(No Teams)*
Best for: Businesses that require advanced security, compliance, analytics, and voice capabilities.
Includes:
- Includes everything in E3, plus:
- Microsoft Defender for Office 365
- Microsoft Purview (advanced compliance and information protection)
- Azure AD Premium P2 (Identity Protection, Privileged Identity Management)
- Microsoft Defender for Endpoint
- Microsoft Defender for Cloud Apps
- Power BI Pro
Month to Month Commitment
$65.76
per user/month
Annual Commitment
(pay monthly)
$57.54
per user/month
Annual Commitment
(pay upfront)
$54.80
per user/month
$657.60
per user/year
Microsoft Teams and Enterprise SKUs
*As of April 1, 2024, Microsoft no longer includes Teams in new Microsoft 365 E3 and E5 and new Office 365 E3 and E5 subscriptions for customers outside the European Economic Area (EEA) and Switzerland. This change was made to align with global licensing practices following regulatory concerns in the EU.
New customers must now purchase Microsoft 365 E3 or E5 (no Teams) and add Microsoft Teams Enterprise as a separate SKU if needed. Existing customers with bundled plans can continue to renew, upgrade, or add seats under their current agreements.
We’ve included details about the Microsoft Teams Enterprise SKU below, but you can also visit our Microsoft Teams Licensing Guide to get the full picture of the available options for Teams licensing!
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Microsoft Teams Licensing
Microsoft Teams offers a range of licensing options to meet the needs of individuals, small… Explore
Microsoft Teams
Enterprise
Month to Month Commitment
$6.36
per user/month
Annual Commitment
(pay monthly)
$5.57
per user/month
Annual Commitment
(pay upfront)
$5.30
per user/month
$63.60
per user/year
What it is: The standalone version of Teams designed for business and enterprise use. It includes the full collaboration experience: Chat, meetings, calling, file sharing, and app integration, along with enterprise grade security and compliance features.
Key Features:
- Unlimited group meetings (up to 30 hours)
- Up to 1,000 participants per meeting
- 1 TB of cloud storage per organization, plus 10 GB per licensed user
- Microsoft 365 app integration (Word, Excel, PowerPoint, etc.)
- Advanced admin controls and policy management
- Enterprise-grade security and compliance
Microsoft 365 E5 Add-ons
Microsoft 365 E5 includes a suite of advanced compliance and security capabilities designed to help organizations protect sensitive data, manage risk, and meet regulatory requirements. These features are also available as add-ons for Microsoft 365 E3 customers.
Microsoft 365 E5 Compliance
Add-on for E3
Best for: Organizations that operate in highly regulated industries or manage sensitive data
Includes: Microsoft Purview Compliance Manager, Insider Risk Management, Communication Compliance, Information Barriers, Customer Lockbox, Advanced Audit, Microsoft Purview Data Lifecycle Management
Month to Month Commitment
$14.40
per user/month
Annual Commitment
(pay monthly)
$12.60
per user/month
Annual Commitment
(pay upfront)
$12
per user/month
$144
per user/year
Microsft 365 E5 eDiscovery & Audit
Add-on for E3
Best for: Legal and compliance teams needing advanced investigation tools
Includes: Advanced eDiscovery (custodian management, legal hold, review sets), audit logs with extended retention (up to 1 year), integration with Microsoft Purview
Month to Month Commitment
$7.20
per user/month
Annual Commitment
(pay monthly)
$6.30
per user/month
Annual Commitment
(pay upfront)
$6
per user/month
$72
per user/year
Info Protection and Governance
Add-on for E3
Best for: Organizations managing sensitive data across cloud and on-premises
Includes: Sensitivity labels (manual and automatic), data Loss Prevention (DLP) across Microsoft 365 apps, customer Key for encryption control, records management and retention policies
Month to Month Commitment
$8.40
per user/month
Annual Commitment
(pay monthly)
$7.30
per user/month
Annual Commitment
(pay upfront)
$7
per user/month
$84
per user/year
Insider Risk Management
Add-on for E3
Best for: Detecting and mitigating internal threats
Includes: Policy-based detection of risky user behavior, integration with Microsoft Defender and Purview, role-based access and anonymized investigations
Month to Month Commitment
$7.20
per user/month
Annual Commitment
(pay monthly)
$6.30
per user/month
Annual Commitment
(pay upfront)
$6
per user/month
$72
per user/year
Microsoft 365 E5 Security
Add-on for E3
Best for: Organizations requiring advanced threat protection and identity security
Includes: Microsoft Defender for Office 365, Microsoft Defender for Endpoint, Microsoft Defender for Identity, Microsoft Defender for Cloud Apps, Azure AD Premium P2 (Identity Protection, Conditional Access, PIM)
Month to Month Commitment
$14.40
per user/month
Annual Commitment
(pay monthly)
$12.60
per user/month
Annual Commitment
(pay upfront)
$12
per user/month
$144
per user/year
Work with xMonthly to Choose the Right Plan
Choosing between Microsoft 365 Enterprise plans depends on your organization’s priorities, whether it’s productivity, security, compliance, or all of the above. At xMonthly, we help you assess your needs, compare licensing paths, and implement the right solution with confidence. Let’s make sure your investment supports your goals today and scales with you tomorrow.
Does your business not need all of the functionality offered by Microsoft 365 Enterprise plans? See Office 365 Enterprise plans via our licensing guide.
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Microsoft Office 365 Enterprise Licensing
This Office 365 Enterprise Licensing guide outlines the key Office 365 Enterprise plans:… Explore
For licensing details tailored to shift-based and frontline workers, refer to our Microsoft 365 Frontline Licensing Guide.
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Microsoft 365 Frontline Licensing
Microsoft 365 Frontline is a suite of productivity, communication, and security tools… Explore
Schedule a free consultation call today and get tailored recommendations that align with your business goals and budget!