What's the difference between an E3 and an E5 Microsoft 365 license?

The two most common Office 365 licenses for businesses are E3 and E5. Since there is only a $15 difference in price, commonly asked questions are, “What is the difference between the E3 and E5 licenses?licenses?licenses? ” and “Is the $15 difference worth it?” 

To answer those questions simply, the major differences can be put into three categories:

1. Security 
2. IP Telephony  
3. Analytics 

1. Security 

The E3 and E5 licenses differ in several ways from a security perspective. Microsoft's basic anti-spam and anti-malware software is included with the E3 license. The E5 license comes with those basics and Microsoft Advanced Threat Protection software, which protects your company against malicious threats in email messages, attachments, and links.  

Additionally, the E5 license includes a way to conduct a test that will give you insights into what your end users will be experiencing. You can use this phishing attack simulator to send out fake spam emails to your users and keep track of who clicked what. The results will reveal which users may need extra training in order to identify spam.  

A password attack tool is another great feature of the E5 license. Passwords are tested against a list of commonly used passwords with this tool. 

Additionally, the E5 license comes with O365 Cloud App Security, which gives you control over what apps users can use.  

Peace of mind is provided by the security tools included in the E5 license. 

Security                                                     E3 E5

Anti-spam & Anti-malware                         X X

Anti-malware                                               X X

Advanced Threat Protection                         X 

Phishing Attack Simulator                         X

Password Attack Tool                                 X

O365 Cloud App Security                                          X

2. IP Telephony 

Microsoft's Teams Phones are included with the E5 license. You can save up to 75% over competing IP phone solutions with this robust IP telephony solution. E3 does not include this capability. 

Teams Phones has all of the features of a regular phone system, for example: 

Incoming calls are directed to a group of extensions so one member can answer if another line is busy 

• Call in menus – an automated greeting that offers callers a variety of routing options 
• Follow me – You'll receive incoming calls on each of your devices 
• Voicemail to email - lets you receive voicemails via email 

The phone system has the same capabilities as a standard phone system, and the lines are provided and operated by Microsoft.  

Conference call-in numbers are available for Teams meetings. Due to this, people can cancel their Zoom or other conference call subscriptions, saving money and streamlining the process.  

There are a variety of ways to use Teams Phones: 

• using a computer, microphone, and speakers 
• using headsets 
• integrating traditional desk phones 

You can also download the Teams app to a smartphone and receive calls wherever you have a data connection.  

By moving to Teams Phones, you would save immediately if you were already paying $35 per user for an IP Telephony solution, and an E3 license for Office 365. 

3. Analytics 

Office 365 comes with two analytics tolls: MyAnalytics and Power BI Pro. The E5 license is the only plan that offers Power BI Pro. 

Advanced Analytics                 E3 E5

MyAnalytics                               X   X 

Power BI Pro                         X

MyAnalytics gives each end-user insights into their working style, such as how much uninterrupted "focus time" they have each week. The end-user is provided with the tools they need to stay on top of tasks and email before their weekly calendar fills up. AI-powered suggestions in Outlook help schedule "focus time" during recommended time slots. 

You can turn data into interactive visualizations with PowerBI Pro to create a data-driven culture in your organization. By using data mining, professionals are able to make decisions based on facts, not instinct.   

So, is the E5 license worth an additional $15 a month? Definitely! It's worth the extra cost because the additional features keep organizations secure and productive. You may be able to save money by avoiding the need for phone services from a third-party provider with this license.

Find out more about each license by contacting a specialist!