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MICROSOFT OFFICE 365 ENTERPRISE LICENSING

Office 365 Enterprise is a cloud-based suite of productivity and collaboration tools designed for large organizations. It includes familiar Microsoft Office apps, enterprise-grade email, file storage, and communication tools like Exchange Online, SharePoint, and Microsoft Teams. This Office 365 Enterprise Licensing guide outlines the key Office 365 Enterprise plans: E1, E3, and E5, to help you understand what’s included and how to license them effectively.

Please note that Office 365 Enterprise SKUs do not include Microsoft Teams. Read more below or visit our Teams Licensing page!

Office 365 E1

(No Teams)*

Best for: Frontline or deskless workers

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

$9.36

per user/month


Annual Commitment

(pay monthly)

$8.19

per user/month


Annual Commitment

(pay upfront)

$7.80

per user/month

$93.60

per user/year

Office 365 E3

(No Teams)*

Best for: Knowledge workers needing full Office apps and compliance 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

$24.96

per user/month


Annual Commitment

(pay monthly)

$21.84

per user/month


Annual Commitment

(pay upfront)

$20.80

per user/month

$249.60

per user/year

Office 365 E5

(No Teams)*

Best for: Organizations needing advanced security, analytics, and voice

Includes: Microsoft Defender for Office 365, advanced eDiscovery and audit, Microsoft Purview compliance tools, Power BI Pro

Month to Month Commitment

$42.96

per user/month


Annual Commitment

(pay monthly)

$37.59

per user/month


Annual Commitment

(pay upfront)

$35.80

per user/month

$429.60

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!

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

Work with xMonthly to Choose the Right Plan

Choosing the right Office license depends on how your organization works, whether you need a stable, one-time purchase or a flexible, cloud-connected experience. At xMonthly, we help you evaluate your options, align licensing with your IT strategy, and ensure compliance across your environment.

Need more security and compliance, or enterprise mobility suite? See our Microsoft 365 Enterprise Licensing Guide.

For licensing options designed specifically for frontline workers in shift-based roles, see the Microsoft 365 Frontline Licensing Guide.

Schedule a free consultation call today and get tailored recommendations that align with your business goals and budget!