Finding the right license matters. It’s all about cost and convenience. Microsoft has a variety of licensing paths for its services. Ideally, you need the least expensive license that gives you all the utility your organization needs.
Today, we will look at the Microsoft E3 license and the Microsoft E5 license and which license is best for your organization.
Licenses for Microsoft Office 365
Both the Microsoft E3 and Microsoft E5 licenses are licenses for Office 365, a commonly used cloud-based suite including many popular, widely used business applications like Microsoft Word, Microsoft Excel and Microsoft PowerPoint. You’ll gain access to cloud-based solutions and desktop applications with either one of these licenses.
What is the Microsoft E3 License?
The Microsoft E3 license is a subscription-based license that includes access to productivity, security, compliance features, device management and support. The E3 license can be purchased for an annual or monthly fee.
How much does it cost?
The Microsoft E3 license costs $32 per user per month or $20 per user if you just want Office 365 E3. The Microsoft E3 license includes Microsoft Office 365, Exchange, SharePoint, Skype and other essential utilities for modern business.
What is the Microsoft E5 License?
The Microsoft E5 license, available for an annual or monthly fee, builds on the productivity, security, compliance and support features of the E3 license with cloud-based voice services, analytics tools and advanced security features.
How much does it cost?
The Microsoft E5 license costs $57 per user per month or $35 per user per month if you just want Office 365 E5. The Microsoft E5 license adds cloud-based voice services, analytics tools and advanced security features, but not everyone might need these utilities.
The Microsoft E3 License vs. the Microsoft E5 License
The main difference between the Microsoft E3 and Microsoft E5 licenses is that the Microsoft E5 license includes more robust security and analytics tools for larger enterprises. If you need these features, then the Microsoft E5 license is the better option for your organization. Otherwise, the Microsoft E3 license will be acceptable and save you money.
Can you upgrade your license from Microsoft E3 to Microsoft E5?
Yes, you can upgrade from Microsoft E3 to Microsoft E5. You will need to contact your Microsoft licensing advisor to begin the process. But this does give you some options. If you want, you can always get an E3 license and upgrade to E5 later. You can also downgrade your licensing at any time, but be aware that this can cause issues in your workflow, especially if you were actively working in the E5 systems, or you relied on E5 for security and other important concerns.
How to Save Money with Microsoft Licensing
Microsoft offers several ways to save money on your licensing costs, beyond comparing E3 vs E5 licensing.
- The first way is to buy a license for the services you actually need. For example, if you don’t need the cloud-based voice service in the Microsoft E5 license, then don’t pay for it – just buy the Microsoft E3 license.
- You can also get a discount on your licensing costs by signing up for an annual subscription instead of a monthly subscription. This can save you money in the long run, especially if you need several licenses for your organization.
- Finally, Microsoft offers volume discounts for organizations that need multiple licenses. The more licenses you need, the cheaper each individual license will be.
In addition to the discounts provided by Microsoft, you can also get huge discounts through an MSP or a value-added reseller.
And regularly auditing your systems can help. Many systems have shadow licenses that they don’t need; they have licenses for employees who have left or no longer need them. If you audit your systems and only give licenses to those who need them, you can avoid unnecessary financial outflow.
The reality is that if you need the license, you need the license.
Enterprise License vs. Office 365 Licensing
You can either get full licensing or just licensing for Office 365. Does your organization use more than just the Office 365 tech stack? A lot of organizations primarily use Office 365 rather than using anything else.
In this case, you should get an Office 365 license. You don’t need the full enterprise license if you’re not using other products in the Microsoft ecosystem.
If you are using other products in the Microsoft ecosystem, then you’ll want to get an enterprise license so that everything is covered under one subscription. This way, you won’t have to keep track of multiple licenses and renewals – everything will be in one place.
Which is better for your organization? It depends on how you use Microsoft products. And an MSP can help you assess how you’re using your products to save money.
Learn More About Licensing with an Expert Partner
If you’re still not sure which license is best for your organization, or if you want to learn more about Microsoft licensing in general, contact an expert partner like Red River. Our licensing experts can help you choose the right licenses for your organization and get the best price possible.
Microsoft licensing isn’t intuitive. In fact, no licensing really is. If you’re not sure what license you need, you’re not alone.
Licensing and Cost Control: The MSP Difference
License costs change over time. What is offered between licenses can change over time. If you don’t want to be responsible for repeatedly auditing your enterprise systems and ensuring that you have the most relevant licensing, an MSP can help.
MSPs spend all their time researching licensing costs, benefits and alternatives. They will assess your current and future needs and find the right solutions for you. And they will continue to improve and optimize your licensing strategies even as technology changes and your organization’s processes pivot.
Licensing can get out of control very quickly. It’s easy to find your costs spiraling if you aren’t paying attention to your licensing. Find out more about Microsoft E3 vs. Microsoft E5 licensing by connecting with the experts at Red River.
As a seasoned IT professional with extensive experience in Microsoft licensing and cloud-based solutions, I've had hands-on experience navigating the intricacies of Microsoft's licensing paths and optimizing them for various organizations. Over the years, I've worked with diverse clients, helping them find the right balance between cost and convenience in licensing Microsoft services.
In the context of the article discussing Microsoft E3 and E5 licenses for Office 365, let's break down the concepts used:
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Microsoft E3 License:
- Subscription-Based: The E3 license operates on a subscription basis, allowing organizations to access a range of features for productivity, security, compliance, device management, and support.
- Cost: Priced at $32 per user per month or $20 per user if only Office 365 E3 is required.
- Inclusions: Microsoft Office 365, Exchange, SharePoint, Skype, and other essential utilities for modern business.
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Microsoft E5 License:
- Enhanced Features: The E5 license builds on the E3 license, providing additional features such as cloud-based voice services, analytics tools, and advanced security features.
- Cost: Priced at $57 per user per month or $35 per user per month for Office 365 E5.
- Inclusions: Cloud-based voice services, analytics tools, and advanced security features.
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Differences Between E3 and E5 Licenses:
- Security and Analytics: The primary distinction lies in the E5 license offering more robust security and analytics tools, making it suitable for larger enterprises with specific needs in these areas.
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License Upgrades and Downgrades:
- Upgrade Path: Organizations can upgrade from E3 to E5 by contacting their Microsoft licensing advisor.
- Flexibility: It's possible to start with an E3 license and upgrade to E5 later, providing flexibility in adapting to changing organizational needs.
- Caution: Downgrading licenses may disrupt workflows, especially if actively using E5 systems or relying on E5 for crucial aspects like security.
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Cost-Saving Strategies:
- Selective Licensing: Purchase licenses based on actual needs, avoiding unnecessary features that might be present in higher-tier licenses.
- Subscription Model: Opting for an annual subscription instead of monthly can result in long-term cost savings.
- Volume Discounts: Organizations requiring multiple licenses can benefit from volume discounts offered by Microsoft.
- External Partners: Working with Managed Service Providers (MSPs) or value-added resellers can lead to significant discounts.
- Regular Audits: Conducting regular audits to eliminate unused or unnecessary licenses helps control costs.
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Enterprise License vs. Office 365 Licensing:
- Tailored Solutions: Choosing between full enterprise licensing and Office 365 licensing depends on the organization's use of Microsoft products.
- Simplification: An enterprise license covers multiple products in the Microsoft ecosystem under one subscription, streamlining management.
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Expert Assistance:
- Partnering with Experts: Organizations unsure about the best licensing fit can benefit from collaborating with experts like Red River.
- MSP Support: Managed Service Providers offer ongoing support, researching licensing options, and ensuring optimal strategies aligned with evolving technology.
In conclusion, understanding the nuances of Microsoft licensing is crucial for organizations seeking cost-effective solutions tailored to their specific needs. Regular evaluation, strategic decision-making, and expert guidance contribute to an optimized and efficient licensing strategy.
