Microsoft has expanded its enterprise licensing lineup. With three tiers now on the table, E3, E5, and now E7, businesses reviewing their Microsoft 365 options face a more nuanced decision than they did a year ago. The choice is not simply about features. It is about finding the plan that matches your organisation’s security risk profile, compliance requirements, and whether AI adoption is part of your near-term roadmap.
Microsoft 365 E3 vs E5 vs E7, summarised: E3 delivers the enterprise productivity and device management foundation. E5 layers in advanced security, identity protection, Power BI Pro, and full compliance tooling. E7 brings everything in E5, plus Microsoft 365 Copilot and enterprise AI capabilities under a single, predictable licence.
Getting this wrong costs your organisation in one of two directions. Either you are over-licencing and paying for capabilities your teams will never use, or you are under-licencing and operating with security and compliance gaps that represent genuine, measurable risk. Neither is acceptable when your business depends on Microsoft infrastructure for day-to-day operations.
This guide breaks down what each plan actually covers, presents a clear side-by-side Microsoft 365 E3 vs E5 vs E7 comparison table, and gives you a practical framework for deciding which Microsoft 365 enterprise plan fits your situation.
Microsoft 365 Enterprise Plans: What They Cover
Before getting into the difference between Microsoft 365 E3, E5, and E7, it helps to understand what the enterprise tier includes as a baseline. All three plans are built on the same productivity foundation: full Microsoft Office desktop and web apps, Microsoft Teams, Exchange Online Plan 2, SharePoint, and OneDrive with 1TB per user.
Every enterprise plan also includes Windows 11 Enterprise licensing and Microsoft Intune for device management. These are not add-ons. They are included in the plan, which is one reason the enterprise tier often represents better commercial value than it first appears when compared to Business Premium with separately purchased security tools.
Where the plans diverge is in three layers: how much security depth is included, what compliance and data governance tooling is available, and whether AI-driven productivity via Microsoft 365 Copilot is part of the package.
Difference Between Microsoft 365 E3, E5, and E7
The table below sets out the key capabilities included in each plan. Use it as a reference alongside the detailed breakdown in the sections that follow.
| Feature | E3 | E5 | E7 |
|---|---|---|---|
| Office Apps (Desktop + Web) | ✓ | ✓ | ✓ |
| Microsoft Teams | ✓ | ✓ | ✓ |
| Exchange Online (Plan 2) | ✓ | ✓ | ✓ |
| SharePoint + OneDrive (1TB per user) | ✓ | ✓ | ✓ |
| Windows 11 Enterprise | ✓ | ✓ | ✓ |
| Microsoft Intune (Device Management) | ✓ | ✓ | ✓ |
| Azure AD P1 (Conditional Access, MFA) | ✓ | ✓ | ✓ |
| Basic eDiscovery and Retention Policies | ✓ | ✓ | ✓ |
| Azure AD P2 (Identity Protection, PIM) | ✗ | ✓ | ✓ |
| Microsoft Defender for Endpoint P2 | ✗ | ✓ | ✓ |
| Microsoft Defender for Identity | ✗ | ✓ | ✓ |
| Microsoft Defender for Cloud Apps | ✗ | ✓ | ✓ |
| Power BI Pro | ✗ | ✓ | ✓ |
| Microsoft Purview (Advanced DLP + Sensitivity Labels) | ✗ | ✓ | ✓ |
| Insider Risk Management | ✗ | ✓ | ✓ |
| Communication Compliance | ✗ | ✓ | ✓ |
| Microsoft 365 Advanced Auditing | ✗ | ✓ | ✓ |
| Microsoft 365 Copilot | ✗ | ✗ | ✓ |
| Copilot for Security | ✗ | ✗ | ✓ |
| Priority AI Feature Access | ✗ | ✗ | ✓ |
For authoritative detail on Microsoft 365 licensing tiers, refer to Microsoft’s official Microsoft 365 admin documentation.
Not Sure Which Microsoft 365 Plan Fits Your Business?
Transputec helps UK organisations navigate Microsoft 365 enterprise licensing without the guesswork. We assess your current environment, identify what you need, and recommend the right plan for your headcount, risk profile, and budget.
Get a Strategic ConsultationWhat Is Included in Microsoft 365 E3?
Microsoft 365 E3 is the enterprise foundation. It covers the tools most organisations need for day-to-day productivity, secure device management, and foundational compliance, without the advanced security capabilities that characterise the higher tiers.
Key capabilities in Microsoft 365 E3 include:
- Full Office desktop and web apps: Word, Excel, PowerPoint, Outlook, OneNote, and Access
- Microsoft Teams: Full collaboration, calling, and meeting capabilities
- Exchange Online Plan 2: Mailbox with 100GB capacity, eDiscovery, and archiving
- SharePoint and OneDrive: 1TB per user, plus team site capabilities
- Windows 11 Enterprise: Full enterprise OS licensing included
- Microsoft Intune: Mobile device and application management
- Azure Active Directory P1: Conditional Access, Multi-Factor Authentication, self-service password reset
- Microsoft Purview (basic): Data loss prevention, basic sensitivity labels, retention policies
- Microsoft Defender Antivirus and Endpoint P1: Basic endpoint protection
E3 is the right baseline for organisations that need enterprise-grade productivity and device management without complex security requirements. If your team’s primary concerns are accidental data loss and foundational compliance, E3 covers those needs at a cost that is meaningfully below E5.
Where E3 falls short: it does not include advanced threat detection, identity protection, or the consolidated compliance tooling that regulated industries typically require. That is where the Microsoft 365 E3 vs E5 vs E7 comparison becomes commercially significant for IT decision-makers.
What Does Microsoft 365 E5 Add?
Microsoft 365 E5 is built for organisations that operate in regulated sectors, handle sensitive data at scale, or have identified gaps in their security posture after an incident or audit. It adds a significant security, compliance, and analytics layer on top of everything included in E3.
The key additions in E5 are:
- Azure Active Directory P2: Adds Identity Protection, Privileged Identity Management (PIM), and risk-based Conditional Access policies
- Microsoft Defender for Endpoint Plan 2: Advanced threat hunting, automated investigation, and response capabilities across all managed devices
- Microsoft Defender for Identity: Detects identity-based attacks, lateral movement, and compromised credential usage across Active Directory
- Microsoft Defender for Cloud Apps: Cloud Access Security Broker (CASB) functionality, shadow IT discovery, and app governance
- Microsoft Defender for Office 365 Plan 2: Advanced phishing protection, safe links, safe attachments, and attack simulation training
- Power BI Pro: Full Power BI licensing included per user, without a separate add-on cost
- Microsoft Purview Information Protection P2: Automated sensitivity labelling, advanced DLP policies across Microsoft 365 services
- Insider Risk Management: Detects potential insider threats before they become incidents
- Communication Compliance: Monitors Teams, email, and chat for policy violations, relevant for FCA-regulated and financial services firms
- Microsoft 365 Advanced Auditing: Extended audit log retention and high-bandwidth access to audit events for investigations
For organisations asking whether they should upgrade from Microsoft 365 E3 to E5, the financial case is often stronger than it first appears. If your organisation is separately licensing Defender for Endpoint, Power BI Pro, and Azure AD P2, the combined cost of those add-ons may already exceed the price difference between E3 and E5. A proper Microsoft 365 licensing review should model your total Microsoft spend, not just the base plan cost.
Transputec’s managed IT services team regularly conducts these assessments for UK organisations reviewing their Microsoft 365 enterprise plans.
What Is New in Microsoft 365 E7?
Microsoft 365 E7 is the newest enterprise tier, positioned for organisations that want to embed AI across their workforce under a single, enterprise-grade licence. It includes everything in E5, with Microsoft 365 Copilot and Copilot for Security added at the plan level.
The key additions exclusive to E7 are:
- Microsoft 365 Copilot: AI-powered assistance across Word, Excel, PowerPoint, Outlook, Teams, and the full Microsoft 365 suite. Copilot drafts, summarises, translates, and generates content based on your organisation’s data and context, drawing on Microsoft Graph.
- Copilot for Security: AI assistance within the Microsoft security stack, helping security teams investigate incidents, generate threat intelligence summaries, and respond to alerts more efficiently.
- Priority AI Feature Access: E7 subscribers receive early access to new Microsoft AI capabilities as they are released, ahead of the standard product roadmap.
Microsoft 365 E7 addresses a specific commercial consideration. Organisations that wanted to deploy Copilot at scale previously had to licence it as a separate add-on. For businesses with large user counts, E7 may present a more predictable cost structure than maintaining separate E5 and Copilot licences side by side.
It is worth noting that Microsoft 365 E7 is designed for organisations that are ready to deploy AI now, not those that are evaluating it for a future phase. If Copilot adoption is not on your roadmap for the next 12 months, E5 is likely the more cost-effective choice. Microsoft’s official Microsoft 365 admin documentation provides the authoritative reference on what is included in each tier.
Which Microsoft 365 Enterprise Plan Is Right for Your Business?
When evaluating Microsoft 365 E3 vs E5 vs E7, the decision comes down to three practical questions rather than a simple feature checklist.
What is your security risk profile? Organisations in financial services, healthcare, legal, or public sector operate under compliance obligations that make the tools in E5 functionally non-optional. Insider Risk Management, Communication Compliance, and Advanced Auditing are expected controls for FCA-regulated firms, NHS suppliers, and law firms handling client-privileged data. If your risk profile requires those tools, E5 is the right choice regardless of the cost difference over E3.
Are you already paying for E5 capabilities separately? Many organisations on E3 are separately licensing Defender for Endpoint P2, Power BI Pro, and Azure AD P2. In those cases, upgrading to E5 consolidates that spend and often reduces total cost rather than increasing it. A Microsoft 365 licensing review is the most reliable way to build that case internally.
Is AI adoption on your roadmap in the next 12 to 24 months? If Microsoft 365 Copilot is a near-term strategic priority, E7 removes the complexity of managing a separate Copilot add-on licence. For large organisations, the pricing predictability of E7 may outweigh the cost difference. For organisations still at the evaluation stage, E5 with a Copilot trial is the more measured starting point.
Transputec works with UK businesses across sectors to model these scenarios against actual usage data. Our Microsoft Modern Workplace team can assess your current environment, identify your total Microsoft spend, and recommend the right plan based on evidence. Our Microsoft Azure and M365 services cover everything from initial licensing review to full deployment and ongoing management.
Conclusion
The choice between Microsoft 365 E3 vs E5 vs E7 is a commercial and operational decision as much as it is a technology one. E3 delivers the enterprise foundation your teams need for productivity, device management, and foundational compliance. E5 is built for organisations that need advanced security and a mature compliance posture. E7 bundles enterprise AI at scale for those ready to deploy Copilot across their workforce.
The risk is making this decision based on list pricing alone, without modelling your actual Microsoft spend across separately purchased products, or without assessing whether your current plan’s security tools genuinely match your risk exposure.
Transputec is a certified Microsoft Solutions Partner working with UK organisations to get Microsoft 365 enterprise plans right. Whether you are reviewing your current plan, building a business case for an upgrade, or starting from scratch with an enterprise deployment, our team can give you a clear, evidence-based recommendation. Get in touch today to speak with one of our Microsoft-certified specialists.
FAQs
What is included in Microsoft 365 E7?
Microsoft 365 E7 includes everything in the E5 plan, plus Microsoft 365 Copilot, Copilot for Security, and priority access to new AI features across the full Microsoft 365 suite. Copilot provides AI-powered assistance in Word, Excel, PowerPoint, Outlook, and Teams, drawing on your organisation’s data via Microsoft Graph. Copilot for Security gives security teams AI assistance for incident investigation and threat intelligence. E7 is designed for organisations ready to deploy AI at enterprise scale under a single licence. For more detail, visit Transputec’s Microsoft Modern Workplace page.
What is the difference between Microsoft 365 E3, E5, and E7?
E3 covers core productivity (Office apps, Teams, Exchange, SharePoint), Windows 11 Enterprise, Intune, and Azure AD P1. E5 adds the full Microsoft Defender suite (Endpoint P2, Identity, Cloud Apps), Azure AD P2 with Identity Protection and PIM, Power BI Pro, and advanced compliance tooling including Insider Risk Management and Communication Compliance. E7 includes everything in E5 plus Microsoft 365 Copilot and Copilot for Security. The key difference is security depth between E3 and E5, and AI integration between E5 and E7. Transputec’s Microsoft M365 services team can walk you through a detailed comparison for your specific environment.
Should I upgrade from Microsoft 365 E3 to E5?
It depends on your security requirements and your current Microsoft spend. If your organisation separately licenses Defender for Endpoint P2, Power BI Pro, or Azure AD P2, the combined cost of those add-ons may already approach or exceed the price difference between E3 and E5, making the upgrade cost-neutral or advantageous. The case for upgrading is most straightforward for organisations in regulated sectors (financial services, healthcare, legal) where E5 compliance tools like Insider Risk Management and Communication Compliance are functionally required. Transputec’s managed IT services team can model your current spend and give you a clear financial comparison.
What is Microsoft 365 E7 pricing in the UK?
Microsoft has not published a final confirmed retail price for E7 in the UK at the time of publication. Pricing is expected to reflect a bundled cost broadly equivalent to E5 plus the Microsoft 365 Copilot add-on, which is currently priced at approximately £25.10 per user per month in the UK. For an accurate commercial quote based on your user count and contract type, speak to a certified Microsoft partner. Transputec can provide a tailored quote via our Microsoft Modern Workplace team.
Which Microsoft 365 enterprise plan is right for my business?
The right plan depends on three factors: your security risk profile, whether you are already paying for E5 capabilities as separate add-ons, and whether AI adoption is on your near-term roadmap. E3 suits organisations that need enterprise productivity and device management without complex security requirements. E5 suits organisations in regulated industries or those carrying significant cyber risk. E7 suits businesses planning to deploy Microsoft 365 Copilot at scale across their workforce. Transputec’s Microsoft Modern Workplace team can assess your current environment and make a specific, evidence-based recommendation for your organisation.
