What Plan is Right for your Business: Microsoft 365 E3 vs. Business Premium

When it comes to choosing a Microsoft 365 plan for your business, there are several options to consider, including Microsoft 365 E3 and Microsoft 365 Business Premium. These offers from Microsoft are massive portfolios of services you must consider. Major security enhancements and comprehensive productivity services in each offer. But there are key differences to keep in mind. Here’s a closer look at how the two plans compare:

Features and Functionality:

Microsoft 365 E3 is the more comprehensive plan, offering a wide range of features and functionality across all Microsoft applications, including Word, Excel, PowerPoint, Outlook, and more. It also includes advanced security and compliance features, such as data loss prevention and information protection.

Microsoft 365 Business Premium, on the other hand, is designed specifically for small and medium-sized businesses – companies with under 300 users – and offers a more limited set of features and functionality and great price, though it still includes core applications like Word, Excel, and PowerPoint, as well as advanced security features like conditional access and threat protection.


One of the biggest differences between Microsoft 365 E3 and Microsoft 365 Business Premium is the range of security features available in each plan.

Microsoft 365 E3 offers more advanced security features, including data loss prevention (DLP), information protection, and single-sign-on (SSO) and access management tools. These features are designed to help larger organizations protect sensitive data and meet compliance requirements.

Microsoft 365 Business Premium also includes a range of security features, but they are more tailored to the needs of small and medium-sized businesses. These features include advanced threat protection, email encryption, and mobile device management. While these features may not be as robust as those included in Microsoft 365 E3, they still provide a solid level of security for SMBs.


Microsoft 365 E3 is $36.00/user/month and the more expensive of the two plans, with a higher per-user monthly cost. However, it includes a much wider range of features and functionality, making it a good fit for larger organizations with more complex needs.

Microsoft 365 Business Premium is $22/user/month and priced more affordably, making it an attractive option for smaller businesses on a tighter budget.


Microsoft 365 E3 is designed to scale up to meet the needs of larger organizations, with features like customizable dashboards and advanced analytics tools.

Microsoft 365 Business Premium, on the other hand, is more limited in its scalability, making it a better fit for smaller organizations with less complex needs. After 300 users, you will need to update to the Enterprise licensing.

To Summarize:

In conclusion, both Microsoft 365 E3 and Microsoft 365 Business Premium offer a range of powerful productivity tools and features, but they are designed for different types of organizations with different needs and budgets. Microsoft 365 E3 is ideal for larger organizations with more complex needs, while Microsoft 365 Business Premium is a better fit for smaller organizations on a tighter budget. Regardless of which plan you choose, both options offer a powerful set of tools and features that can help boost productivity and collaboration across your organization.

So which license should you choose?

Determining which license is a better fit for your organization depends on a number of factors, including the size of your business, your budget, and your specific needs. In general, Microsoft 365 Business Premium is better suited for SMBs that don’t require the full range of features included in Microsoft 365 E3. This license provides a more affordable option for smaller organizations that still need access to core productivity tools and basic security features.

On the other hand, Microsoft 365 E3 is designed for larger organizations that require a more comprehensive set of features and functionality. This license provides advanced security and compliance features, as well as tools for customizing dashboards and conducting in-depth analytics. While it may be more expensive than Microsoft 365 Business Premium, it provides a more complete solution for larger enterprises with more complex needs.

Ultimately, the decision of which license to choose will depend on the unique needs and circumstances of your organization. It’s important to carefully consider the features, functionality, and security capabilities of each plan, as well as your budget and business goals, in order to make the best decision for your organization.