Microsoft E3 vs E5: Considerations for maximising value and security

Considerations to maximise value and security in uncertain times.

Every board knows cyber security is now a business-critical issue. Threats are rising, regulators are tightening, and customers expect you to protect their data. Microsoft 365 is often at the heart of defence, but the licence you choose, E3 or E5, plays a big role in how resilient you really are.

Key differences:

E3 equips your teams with productivity and collaboration tools, plus a baseline of security and compliance. It’s a solid foundation. But it leaves gaps in advanced threat protection, compliance, and insider risk management.

E5 goes further. It brings advanced identity protection, endpoint detection, data loss prevention, insider risk analytics, and integrated threat intelligence. In other words, the tools to not only detect but also respond to modern attacks.

Picking the right tools for the job:

When E3 works

E3 is often a good fit when:

• You are a lower-risk organisation with limited compliance obligations.
• You already have a layered cyber defence strategy with third-party tools.
• You want to start with core protections and scale later.

But be clear-eyed: without advanced features, the risk of phishing, ransomware or insider threats slipping through is higher.

Where E5 delivers more

E5 is designed for organisations that want built-in, enterprise-grade security. It makes sense when:

• You need advanced threat protection and automated response.
• You operate in regulated sectors such as finance, healthcare or public services.
• You want fewer vendors and a more integrated, scalable defence.

E5’s value is not just the features themselves, but the reduction in complexity. Fewer point solutions mean less integration overhead, faster detection, and clearer accountability.

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Whichever option you choose, the key is to actually use the features you are paying for:

• Audit current licences to cut waste and identify misalignment.
• Deploy security features fully, many E5 customers never switch them all on.
• Use role-based licensing, giving E5 to high-risk teams and E3 to general staff.
• Regularly review your security posture against evolving threats.

The choice between E3 and E5 is not just about productivity. It is a security decision. With the right mix and the right partner, you can close the gaps, reduce your risk exposure, and get maximum protection from your Microsoft investment.

As a Microsoft Intelligent Security Association (MISA) partner, Intercity helps UK businesses turn licensing into a security strategy. We right-size estates, activate unused features, and integrate Microsoft security tools into your wider defence, ensuring you get the protection you pay for.

Not sure if your licences match your risk profile? Book an E3 vs E5 security assessment with Intercity and uncover where your defences could be stronger.