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Compare Office 365 Enterprise Licensing

​There are many different types of Office 365 licensing, and it can get pretty confusing when deciding which is best for your business​. We've talked about Business licensing and how that can fit into certain organization types, but what about the Enterprise licensing? How is that different? Why choose Enterprise over Business? Well, let's see if we can answer these questions for you, shall we? 


Enterprise licensing was created for the medium to larger size organizations that may do more business than a small business would and will provide specific features to help support that. There are two types of Enterprise licensing: Office 365 and Microsoft 365, each having their set up specifications that can potentially suit the needs and goals of specific organizations. In this blog, we are going to compare the Office 365 Enterprise licensing.



Office 365 E1 - $10/user/month

The E1 license is for the more basic Enterprise user and  includes features for the user to have essential business services:

  • Includes Business e-mail with Exchange Online Plan 1 (50 GB mailbox size)
  • Web versions of core Office apps including MS Bookings and Teams
  • Includes SharePoint Plan 1
  • OneDrive with 1 TB of storage per user
  • Includes work management apps like Power Apps, Forms and Planner
  • Minimal device management features like MS Graph API
  • On-premises Active Directory sync for SSO


Office 365 E3 - $23/user/month

The E3 license includes everything that E1 includes and adds more features in security and compliance:

  • Installed versions of Microsoft Apps
  • Exchange Online Plan 2 (100 GB mailbox size)
  • SharePoint Online Plan 2
  • OneDrive with initial 5 TB of storage with ability to add more at an additional cost
  • Additional device and app management features such as: group policy support and shared computer activation
  • Information protection with Azure Information Protection feature
  • Minimal advanced compliance with legal compliance and archiving needs


Office 365 E5 - $38/user/month

The E5 license comes with all of the features in E1 and E3 with a greater emphasis on advanced securities, analytics and voice capabilities:

  • Includes phone system and audio conferencing through Teams
  • Includes Power BI Pro
  • Threat protection with Microsoft Defender for Office 365
  • Additional information protection with Office 365 Cloud App Security
  • Office 365 Advanced Compliance  
    • Includes advanced eDiscovery, Customer Lockbox, Advanced Data Governance, service encryption with Customer Key, Office 365 Privileged Access Management, DLP for Teams chat and channel conversations, Information Barriers, Advanced Message Encryption, Data Investigations, and Supervision policies.


Microsoft 365 Apps for Enterprise - $12/user/month

This license is a bit different than the others as it only includes the Office 365 applications and cloud storage solutions among a few other things:

  • Fully installed Office apps for up to 5 PCs, 5 tablets and 5 mobile devices per user
  • OneDrive cloud storage with 1 TB of storage space
  • Includes Microsoft Forms
  • Full features in device and app management
    • MS Graph API
    • Group Policy Support
    • Shared Computer Activation
  • On-premises AD Sync for SSO
  • This license DOES NOT include business e-mail or Teams


As you're skimming through this trying to decide what might be best, just remember that we are here for you to help get the right license based on your business needs. There are a lot of questions on what is best and it can seem daunting trying to decide, but we've got your back!



Blog published June 2022






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