If your organization has reached the 300-user limit of Microsoft 365 Business Premium, it’s time to transition to enterprise-level plans for additional users. To maintain the same security, productivity, and device management capabilities that Business Premium offers, there are two main options: combining Office 365 E3 with additional security products or moving to Microsoft 365 E3 with relevant add-ons.
Option 1: Office 365 E3 + Add-ons
To replicate the capabilities of Microsoft 365 Business Premium, the Office 365 E3 plan must be supplemented with additional security and device management tools.
Key Components:
- Office 365 E3: $23 per user/month
- Includes core Office apps (Word, Excel, Teams, etc.), cloud services (Exchange Online, SharePoint, OneDrive), but lacks endpoint and advanced email protection.
- Microsoft Defender for Endpoint P2: $5.20 per user/month
- Advanced security features such as endpoint detection and response (EDR), automated investigation, and remediation.
- Microsoft Defender for Office 365 P1: $2.00 per user/month
- Adds protection against phishing, malware, and ransomware in email and collaboration tools (Teams, SharePoint).
- Enterprise Mobility + Security (EMS) E3: $11 per user/month
- Includes Azure Active Directory (AD) Premium P1 for identity management, Microsoft Intune for device management, and Azure Information Protection (AIP) P1 for labeling and protecting sensitive data.
Total Cost Per User: $23 (Office 365 E3) + $5.20 (Defender for Endpoint P2) + $2.00 (Defender for Office P1) + $11 (EMS E3) = $41.20 per user/monthOption 2: Microsoft 365 E3 + Add-ons
Although Microsoft 365 E3 includes more built-in capabilities than Office 365 E3, you’ll still need to add specific security features to match Business Premium.
Key Components:
- Microsoft 365 E3: $36 per user/month
- Includes everything in Office 365 E3 plus EMS E3 (Azure AD Premium P1, Microsoft Intune, Azure Information Protection P1). However, it does not include advanced email or endpoint security by default.
- Microsoft Defender for Endpoint P2: $5.20 per user/month
- Microsoft Defender for Office 365 P1: $2.00 per user/month
Total Cost Per User: $36 (Microsoft 365 E3) + $5.20 (Defender for Endpoint P2) + $2.00 (Defender for Office P1) = $43.20 per user/monthTerminal Services Considerations
If your organization uses Terminal Services (Remote Desktop Services):
- Business Premium licenses must be assigned to users who require access to Terminal Services.
- If all users require Terminal Services, transitioning to Microsoft 365 E3 is recommended, as it supports Terminal Services without needing to combine different products. Office 365 E3 does not inherently support Terminal Services without the addition of EMS E3.
Windows 10/11 Enterprise Consideration
One notable advantage of Microsoft 365 E3 is that it includes Windows 10/11 Enterprise licenses, which offer advanced security and management features such as Windows Defender, Credential Guard, and Application Guard. However, an important caveat is that you must have an existing OEM Windows license (either Windows Pro or Home) on the device to upgrade to Windows 10/11 Enterprise through Microsoft 365 E3. This is because Microsoft 365 E3 does not cover a full operating system license for bare-metal devices.
Cost Comparison for Scaling to 600 Users
Let’s now compare the costs when scaling your organization to 600 users (300 on Business Premium and 300 using either Office 365 E3 or Microsoft 365 E3).
Scenario 1: 300 Business Premium + 300 Office 365 E3 with Add-ons
- 300 Business Premium: $22 per user/month = $6,600/month
- 300 Office 365 E3 with Add-ons: $41.20 per user/month = $12,360/month
Total Monthly Cost for 600 Users: $6,600 (Business Premium) + $12,360 (Office 365 E3 with add-ons) = $18,960/month
Average Cost Per User: $18,960 ÷ 600 users = $31.60 per user/month
Scenario 2: 300 Business Premium + 300 Microsoft 365 E3 with Add-ons
- 300 Business Premium: $22 per user/month = $6,600/month
- 300 Microsoft 365 E3 with Add-ons: $43.20 per user/month = $12,960/month
Total Monthly Cost for 600 Users: $6,600 (Business Premium) + $12,960 (Microsoft 365 E3 with add-ons) = $19,560/month
Average Cost Per User: $19,560 ÷ 600 users = $32.60 per user/monthConclusion
- Option 1 (Office 365 E3 + Add-ons) results in a slightly lower per-user cost but requires more complex license management due to multiple add-ons.
- Option 2 (Microsoft 365 E3 + Add-ons), while marginally more expensive, simplifies licensing by bundling many features together, including Windows 10/11 Enterprise, and is especially useful if your organization needs Terminal Services.
Ultimately, Microsoft 365 E3 offers a streamlined solution, especially for enterprises with more complex needs (such as using Terminal Services), while Office 365 E3 + Add-ons can provide flexibility at a slightly lower cost per user.
Want to know where your tenant stands? Griffin31 checks your Microsoft 365 security settings continuously and shows you what to fix first.