Real-World Scenarios for Buying Microsoft E5 Licences (Or Not): What Makes Financial Sense for Your Business?
Choosing the right Microsoft 365 (M365) license can be challenging, especially with the premium E5 plan offering an extensive range of features for security, compliance, analytics and productivity. The E5 license provides the most comprehensive suite of tools within Microsoft 365, but at a significant cost. Is it the right fit for every business? While some organisations will benefit greatly, for others it might make more financial sense to opt for add-ons like E5 Security or E5 Compliance on their E3 subscription or to stick with a lower-tier license.
In this blog, we’ll explore real-world scenarios and use cases to help you decide whether the M365 E5 license (or its add-ons) is the best investment for your business. We’ll also highlight when it makes more financial sense to keep it simple.
Scenario 1: Financial Services Firm with High Compliance Needs
Solution: If they do not need the advanced Defender security capabilities, or have them provided through alternative products, the E5 Compliance Add-On could be the best fit here, giving the firm access to Microsoft Purview Information Protection and Data Loss Prevention, which prevent data leaks and ensure sensitive data remains within compliant boundaries. The eDiscovery and Audit capabilities also help streamline legal requests and internal investigations.
Financial Decision: By opting for the E5 Compliance Add-On rather than the full E5 license, the firm can direct its investment towards compliance without the extra costs. If identity protection and data monitoring are also critical, the E5 Security Add-On could be combined, although this is only marginally cheaper than the full E5 license and only includes Windows 11 Enterprise E3 with less functionality .
Scenario 2: Healthcare Organisation Focused on Protecting Patient Data
Solution: Here, the ‘full E5 licence’ may be ideal – although the NHS has a specific Microsoft licensing agreement which offers E3 functionality (called N3) plus ad-ons to get to E5 functionality. The E5 package offers Microsoft Defender for Office 365, Microsoft Defender for Identity, and Microsoft Defender for Endpoint, providing advanced threat protection across the entire organisation. Additionally, the compliance tools in E5 ensure that patient data is safeguarded and regulatory requirements are met.
Financial Decision: Given the high stakes of data breaches and regulatory fines in healthcare, the full E5 license offers a comprehensive solution that justifies the investment. The provider benefits from both security and compliance tools in a single package, reducing the need for additional third-party solutions and mitigating risks.
Scenario 3: Remote Tech Start-Up with Budget Constraints
Solution: For this start-up, the E5 Security Add-On can meet their primary needs, offering tools like Microsoft Defender for Endpoint, Defender for Identity, Defender for Office 365 and Defender for Cloud Apps, a CLoud Access Service Broker and Security capability. The E5 Security add-on also uplifts Entra AD Plan 1 to Plan 2. These services provide robust protection against cyber threats targeting devices and emails, which is essential in a remote work environment.
Financial Decision: By choosing the E5 Security Add-On instead of the full E5 license, the start-up can gain essential security tools at a lower cost, saving approximately £12.00 per user, per month over the full E5 licence. This budget-friendly approach ensures they’re not paying for additional compliance tools they don’t need.
Scenario 4: Large Enterprise with Complex Security and Compliance Requirements
Solution: The full E5 license is likely the most efficient solution for this enterprise. The E5 suite’s robust security and compliance tools, including Microsoft Purview and Microsoft Defender, offer a centralised approach to managing and monitoring data and devices across the organisation. The enterprise can leverage Microsoft’s advanced threat analytics, identity protection, and insider risk management to address its global security needs.
Financial Decision: The full E5 license represents a cost-effective way to access an all-in-one solution for large enterprises, eliminating the need for multiple third-party providers and simplifying IT management. The economies of scale make this investment worthwhile, especially for complex, distributed operations.
Scenario 5: Education Institution Balancing Budget and Compliance
Solution: Microsoft offer specific licences for qualifying Education organisations, the A5 licence provides comparable features to E5 plus included Learning Accelerators. Where the organisation does not qualify for these licences the E5 Compliance Add-On paired with Microsoft 365 E3 may offer the right balance for this institution. The compliance features of E5, such as Data Loss Prevention and Information Protection, enable the university to protect and manage sensitive data effectively without the higher cost of the full E5 license.
Financial Decision: Education institutions often operate on tight budgets. By choosing the E5 Compliance Add-On rather than the full E5 license, the university can address data protection and regulatory compliance while staying within budget.
Key Considerations for Making Your Decision
When evaluating whether to invest in a full Microsoft 365 E5 license or to use E5 add-ons, consider the following:
- Assess Your Business Needs: Identify whether your primary concern is security, compliance, or a combination of both. If you only need a targeted set of features, add-ons can be more financially efficient.
- Evaluate Compliance Requirements: If your industry is heavily regulated (e.g., finance, healthcare, government), the full E5 license may be worthwhile to ensure full compliance and avoid potential legal issues.3
- Consider Scalability: Large, complex organisations may benefit more from the full E5 license due to its integrated, comprehensive capabilities, while smaller companies may prefer modular add-ons that align with their immediate needs.
- Analyse Total Cost of Ownership: Weigh the costs of additional third-party tools that the full E5 license could replace, as well as the potential cost savings of managing security and compliance through a single platform.
Making the Financially Savvy Choice
Microsoft 365’s E5 licenses and add-ons offer powerful tools to enhance security and compliance across a wide range of organisations. However, understanding which option is most financially viable requires careful evaluation of your organisation’s unique needs. By selecting the right combination of tools, businesses can achieve the protection and compliance they require without overstretching their budget.
Whether you’re a start-up seeking essential security, a healthcare provider safeguarding patient data, or an enterprise managing complex regulatory landscapes, Microsoft’s flexible licensing options allow you to tailor solutions that make financial and strategic sense. For more personalised guidance, consult a Microsoft partner or licensing specialist to explore the options that will optimise both your protection and your budget.
