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Microsoft 365 Business Licenses Explained: E1, E3, and E5 Comparison Guide
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Microsoft 365 Business Licenses Explained: E1, E3, and E5 Comparison Guide

Understand the differences between Microsoft 365 licenses and choose the one that fits your business.

Francesco Capaldo
September 7, 2023
2 min read
Microsoft 365 Business Licenses Explained: E1, E3, and E5 Comparison Guide

License Overview

Microsoft 365 (formerly Office 365) offers several license tiers suited to different needs.

Feature Comparison

Microsoft 365 E1 (~$10 CAD/user/month)


  • Web apps only (no desktop)

  • Exchange Online (50 GB)

  • SharePoint and OneDrive (1 TB)

  • Teams for collaboration

  • Ideal for: Field workers, occasional users
  • Microsoft 365 E3 (~$45 CAD/user/month)


  • Everything in E1 +

  • Full desktop applications

  • 100 GB mailbox

  • eDiscovery and archiving

  • Basic data protection

  • Ideal for: Most office employees
  • Microsoft 365 E5 (~$70 CAD/user/month)


  • Everything in E3 +

  • Microsoft Defender for Office 365

  • Cloud App Security

  • Advanced analytics (Power BI Pro)

  • Cloud telephony

  • Ideal for: Businesses with advanced security needs
  • Security Features by Tier

    | Feature | E1 | E3 | E5 |
    |---------|----|----|-----|
    | Basic MFA | ✓ | ✓ | ✓ |
    | Advanced threat protection | | | ✓ |
    | Advanced DLP | | | ✓ |
    | Conditional access | | ✓ | ✓ |

    Recommendations

  • Startups: Start with E1

  • Established SMEs: E3 offers best value

  • Regulated sectors: E5 for Law 25 compliance
  • Our Service

    AIKI Secure can help you optimize your Microsoft 365 licenses and maximize your investment.

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