Microsoft 365 Business Enterprise: Plans & Pricing
Microsoft 365 Business Enterprise (now called Microsoft 365 Enterprise) is the suite of cloud productivity tools that Microsoft sells to large organizations, combining Office apps, Windows, security, and device management under one subscription. You enter your organization’s size and needs, and the main difference from the smaller Business plans is the inclusion of advanced security, compliance, and analytics features. This article explains what Microsoft 365 Enterprise includes, how it differs from the Business plans, how to choose a license, and what it costs.
Background: Why Microsoft 365 Enterprise Exists
Microsoft 365 Enterprise grew out of two older product families: Office 365 (the cloud version of Office) and Enterprise Mobility + Security (EMS, a set of identity and security tools). In 2020, Microsoft merged them into a single brand called Microsoft 365. The Enterprise tier is aimed at organizations with 300 or more users, though Microsoft does not enforce a hard minimum. It is designed for companies that need more than email and document editing—they need single sign-on, multi-factor authentication, data loss prevention, and centralized control over thousands of devices.
The Enterprise plans are sold in three main editions: E3, E5, and F3 (for frontline workers). There is also an E1 plan that only includes email and web apps, but it is rarely marketed as “Enterprise” in the same way. The E3 plan is the most common starting point, and E5 adds advanced security and analytics features. Unlike the Business plans (Business Basic, Business Standard, Business Premium), the Enterprise plans include Windows Enterprise licensing and more sophisticated compliance tools.
What Each Enterprise Plan Includes
All Enterprise plans include the core Office apps (Word, Excel, PowerPoint, Outlook, OneNote, and Microsoft Teams) as desktop, web, and mobile versions. They also include Exchange Online for email, SharePoint Online for document storage, OneDrive for Business for personal storage, and Microsoft Teams for chat and meetings. The differences are in security, analytics, and Windows features.
- Microsoft 365 E3 – Everything in E1 plus full Office desktop apps, Windows Enterprise, and basic security like multi-factor authentication and conditional access. It also includes eDiscovery and basic compliance tools.
- Microsoft 365 E5 – Everything in E3 plus advanced security (Microsoft Defender for Office 365, Defender for Identity, Defender for Cloud Apps), advanced compliance (eDiscovery Premium, communication compliance), and Power BI Pro for analytics. It also includes audio conferencing and phone system capabilities.
- Microsoft 365 F3 – A cheaper plan for frontline workers who mainly use mobile apps and a web browser. It includes Office web apps, Teams, and Windows Enterprise, but not the full desktop Office suite. It is designed for employees who do not sit at a desk all day.
There is also an E5 Security add-on that adds the security features of E5 to an E3 plan without the other E5 extras, and an E5 Compliance add-on for just the compliance tools.
How Microsoft 365 Enterprise Works
When you subscribe, Microsoft creates a tenant for your organization—a dedicated instance of Azure Active Directory (now called Microsoft Entra ID). You add users, assign them licenses, and they sign in with their corporate email address. The admin center (admin.microsoft.com) is where you manage users, devices, and policies.
Key features that work behind the scenes:
- Single sign-on – Users sign in once and get access to all apps without entering passwords again.
- Multi-factor authentication – Requires a second verification (like a phone code) to sign in, which blocks most account compromise.
- Conditional access – Rules that allow or block sign-in based on location, device, or risk level. For example, you can block access from unmanaged devices.
- Device management – You can enroll Windows PCs in Intune and push policies, install updates, and wipe lost devices.
- Data loss prevention – Scans emails and files for sensitive information (like credit card numbers) and blocks sharing if needed.
All data is stored in Microsoft’s cloud datacenters, with encryption in transit and at rest. Microsoft offers a 99.9% uptime SLA for most services.
How to Choose Between E3, E5, and F3
Choosing the right plan depends on your organization’s security needs and the type of work your employees do. Here is a practical decision guide:
- Count your users. If you have fewer than 300, Microsoft recommends the Business Premium plan (which is cheaper and includes most E3 features plus some E5 security). But you can still buy Enterprise if you need advanced compliance.
- Assess your security posture. If you are in a regulated industry (finance, healthcare, government), you likely need E5 for advanced auditing and compliance. If you just need basic protection, E3 is enough.
- Check if your users need desktop Office. If they do, E3 or E5. If they only use a browser or mobile apps, F3 saves money.
- Consider Power BI. If you need advanced data analytics, E5 includes it. Otherwise, you can buy Power BI Pro separately.
- Look at phone system needs. E5 includes Microsoft Teams Phone (cloud PBX). If you use a third-party phone system, you do not need that.
Many organizations start with E3 and add the E5 Security add-on, which gives most of the security benefits at a lower cost than full E5.
Costs and Licensing
Microsoft does not publish fixed prices for Enterprise plans because they are sold through volume licensing and can be negotiated. However, typical list prices (as of 2024) are:
- Microsoft 365 E3 – around $36/user/month
- Microsoft 365 E5 – around $57/user/month
- Microsoft 365 F3 – around $10/user/month
- E5 Security add-on – around $8/user/month
These are list prices; you can get discounts through Microsoft’s Enterprise Agreement or through a Cloud Solution Provider (CSP) partner. You can mix plans within the same tenant—for example, give E5 to executives and E3 to regular staff.
Licensing is per user, not per device. Each user needs a license, and you can assign or remove licenses in the admin center. There is no free tier for Enterprise, but Microsoft offers a 30-day free trial for E3 and E5.
Common Problems and Misconceptions
One common misconception is that Microsoft 365 Business Premium and Microsoft 365 E3 are the same. They are not. Business Premium is for small businesses (up to 300 users) and includes some E5 security features (like Defender for Office 365) but lacks Windows Enterprise, advanced compliance, and Power BI. E3 is for larger organizations and includes Windows Enterprise, but it does not include the advanced security that Business Premium has. So a small business might get more security for less money with Business Premium.
Another issue is that users often do not realize that the desktop Office apps are installed locally. With E3/E5, you download and install Office on up to 5 PCs per user, and the apps automatically update. If you are used to the web-only versions, the desktop apps have more features.
Common technical problems include:
- License assignment issues – Users cannot access apps because the license is not assigned. Fix: go to admin center > Users > Active users, select the user, and assign a license.
- Multi-factor authentication not working – Users may not have registered a verification method. Fix: have them go to aka.ms/mfasetup.
- Teams not working – Often due to network firewall rules. Ensure that the required URLs and IP ranges are allowed (Microsoft publishes a list).
- OneDrive sync problems – Usually fixed by resetting the sync client or clearing cached credentials.
Security and Compliance Features
Enterprise plans are built around the idea of “zero trust” security—verify every sign-in, limit access, and assume breach. E3 includes basic conditional access and MFA, but E5 adds:
- Microsoft Defender for Office 365 – Protects against phishing and malware in email and Teams.
- Microsoft Defender for Identity – Detects attacks on Active Directory.
- Microsoft Defender for Cloud Apps – Monitors shadow IT and controls access to third-party cloud apps.
- Information Protection – Labels and encryption for sensitive documents.
- Insider Risk Management – Detects risky user activities (e.g., mass downloading files before resignation).
Compliance tools include eDiscovery (search legal cases), retention policies, and auditing. These are essential for organizations subject to GDPR, HIPAA, or other regulations.
Alternatives to Microsoft 365 Enterprise
If Microsoft 365 Enterprise is too expensive or complex, there are alternatives:
- Google Workspace – Cheaper, with similar collaboration tools, but weaker desktop apps and less advanced security/compliance.
- Microsoft 365 Business Premium – For small businesses, it gives most E3 features plus some E5 security at a lower cost (around $22/user/month).
- Office 365 E1 – Email and web apps only, no desktop Office, no Windows Enterprise. Cheapest option for email-only.
- Zoho Workplace – Budget option with email and basic office apps.
- Open-source suites – Like LibreOffice for local editing, but no cloud collaboration or email.
The choice depends on your need for advanced security, compliance, and desktop apps. For most large organizations, Microsoft 365 Enterprise remains the standard because of its integration with Windows and its security features.
Frequently Asked Questions
What is the difference between Microsoft 365 Business and Enterprise?
Business plans are for organizations with up to 300 users and include fewer security/compliance features. Enterprise plans are for larger organizations, include Windows Enterprise, and offer advanced security (E5) and compliance tools. Enterprise also has no user limit.
Can I use Microsoft 365 Enterprise on a Mac?
Yes. The Office apps (Word, Excel, etc.) are available for macOS, and you can use Teams, OneDrive, and SharePoint on a Mac. Windows Enterprise features (like BitLocker) only work on Windows PCs, but the rest of the suite is cross-platform.
Is Microsoft 365 Enterprise worth the cost?
It depends on your needs. If you need advanced security, compliance, and Windows management, Enterprise E5 is worth it. For basic email and Office, Business Standard is cheaper. Many organizations find E3 with the E5 Security add-on a good balance.
How do I switch from Business to Enterprise?
You can buy Enterprise licenses in the admin center and assign them to users. You do not need to create a new tenant. However, you may need to cancel the Business subscriptions to avoid double billing. Microsoft provides a 30-day grace period when switching.
Does Microsoft 365 Enterprise include Windows 11?
Yes. E3 and E5 include Windows Enterprise, which is the version of Windows 11 with advanced security and management features. Users can upgrade from Windows 10/11 Pro to Enterprise using the license.
What happens if I do not renew my Enterprise subscription?
After the subscription expires, you have a grace period (usually 90 days) to renew. After that, your data is deleted after a final 30-day period. You can export your data (emails, files) before deletion.
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