Time to pay the Microsoft 2025 Office 365 E3
Microsoft licenses—especially for Office and enterprise environments—can be confusing. Here’s a breakdown focused on Office 365 E3, a common business-tier license:
What Is Office 365 E3?
Office 365 E3 is a business-class subscription license from Microsoft that gives organizations access to a full suite of productivity, security, and compliance tools. It’s part of the Microsoft 365 ecosystem, primarily aimed at mid-sized to large businesses.
What Does Office 365 E3 Include?
Core Productivity Apps (installed & web):
- Microsoft Word
- Excel
- PowerPoint
- Outlook
- OneNote
- Publisher (Windows only)
- Access (Windows only)
Online Services:
- Exchange Online – Business-class email with 100 GB mailbox per user
- OneDrive for Business – 1 TB (or more) cloud storage per user
- SharePoint Online – Collaboration intranet sites
- Microsoft Teams – Chat, meetings, calls
- Yammer – Corporate social network
- Stream – Video sharing and management
Security & Compliance:
- Data Loss Prevention (DLP) for email and files
- Azure Information Protection (AIP) – Manual classification and labeling
- Message Encryption – Encrypt email inside and outside your organization
- eDiscovery & Litigation Hold – For legal/compliance teams
- Intune integration – If combined with EM+S (sold separately)
Other Benefits:
- Install on up to 5 PCs or Macs + 5 tablets + 5 phones per user
- Access to Office Web Apps
- 99.9% SLA uptime with financial backing
- 24/7 phone and web support
How Much Does It Cost?
As of July 2025, Microsoft lists Office 365 E3 pricing at:
- $23.00/user/month (USD) — with an annual commitment
- Prices vary slightly depending on region, reseller discounts, or volume licensing
What Does the Cost Cover?
Your monthly cost covers:
- Software licenses for each named user
- Updates and upgrades (no version-buying required)
- Cloud storage and backend services
- Access to Microsoft’s support and security ecosystem
- Integration with other Microsoft cloud services (Azure AD, Intune, Defender, etc.)
Summary Table
| Feature | Office 365 E3 |
|---|---|
| Desktop Apps | ✅ Full Office suite |
| Email & Calendar | ✅ Exchange, 100 GB mailbox |
| Cloud Storage | ✅ 1 TB OneDrive per user |
| Teams Collaboration | ✅ Yes |
| Web & Mobile Access | ✅ Yes |
| Security Tools | ✅ AIP, DLP, encryption |
| Price (2025) | 💵 $23/user/month |
Here’s a clear comparison of Office 365 E1 vs E3 vs E5, focusing on features, price, and use case — so you can understand what you’re paying for and why.
Office 365 E1 vs E3 vs E5: Side-by-Side Comparison
| Feature | E1 (Basic) | E3 (Standard) | E5 (Premium) |
|---|---|---|---|
| Monthly Price (USD) | $10.00/user/mo | $23.00/user/mo | $38.00/user/mo |
| Desktop Office Apps (Word, Excel, etc.) | ❌ Web & mobile only | ✅ Full desktop + web + mobile | ✅ Full desktop + web + mobile |
| Email & Calendar (Exchange) | ✅ 50 GB mailbox | ✅ 100 GB mailbox | ✅ 100 GB + advanced security |
| OneDrive for Business | ✅ 1 TB/user | ✅ 1 TB/user | ✅ 1 TB/user |
| Microsoft Teams | ✅ Yes | ✅ Yes | ✅ Yes |
| SharePoint / Yammer / Stream | ✅ Yes | ✅ Yes | ✅ Yes |
| Office Online (Word, Excel, PowerPoint) | ✅ Yes | ✅ Yes | ✅ Yes |
| Install Office on PC/Mac | ❌ No | ✅ Yes (5 devices/user) | ✅ Yes (5 devices/user) |
| Advanced Security (AIP, DLP, Encryption) | ❌ No | ✅ Yes | ✅ Yes + enhanced (Defender, Insider Risk) |
| eDiscovery / Legal Hold | ❌ No | ✅ Yes | ✅ Advanced eDiscovery + Analytics |
| Power BI Pro (for data analysis) | ❌ No | ❌ No | ✅ Included |
| Phone System / PSTN Calling | ❌ No | ❌ No | ✅ Yes (Cloud PBX, Audio Conferencing) |
| Advanced Compliance & Analytics | ❌ No | ✅ Basic Compliance | ✅ Full Compliance, Threat Analytics |
Summary of Key Use Cases
- Office 365 E1 – Great for frontline workers, light users, or organizations that only need web-based apps and email.
- Office 365 E3 – Best for most businesses needing full Office apps, compliance features, and enterprise-grade email.
- Office 365 E5 – Ideal for regulated industries, legal/compliance-heavy orgs, or security-focused teams needing threat protection, Power BI, and telephony.
TL;DR:
- E1 = Cloud-based apps only, basic collaboration – $10/mo
- E3 = Full Office apps + compliance + security – $23/mo
- E5 = Everything in E3 + security, analytics, calling – $38/mo
