Business Premium vs E3

Choosing the right Microsoft 365 subscription can significantly influence your organization's productivity and IT efficiency. Microsoft offers various tiers within its suite, each tailored to different business needs.

Many organizations struggle to choose between Microsoft 365 Business Premium and E3. The names are similar, the feature sets overlap, and the differences aren’t always clear—especially for IT leaders trying to support growth while keeping operations efficient.

This decision isn’t just about picking a plan. It directly affects your licensing costs, how your teams collaborate, the strength of your security posture, and how well your business aligns with compliance requirements. Making the right call helps avoid overspending while ensuring your tools support both daily productivity and long-term goals.

What Business Premium Offers for Growing Teams

Microsoft 365 Business Premium is designed for small to mid-sized businesses looking for secure, cloud-based productivity without the overhead of enterprise-level tools. It delivers familiar Microsoft 365 apps, built-in security features, and centralized device management—making it a practical choice for IT teams supporting distributed or hybrid work environments.

Core Features That Support Everyday Work

Business Premium includes a full suite of productivity and collaboration tools that help teams stay connected and efficient:

• Microsoft 365 apps like Word, Excel, PowerPoint, and Outlook
• Microsoft Teams for chat, meetings, and calls
• SharePoint and OneDrive for document storage and sharing
• Microsoft Bookings for internal and external scheduling
• Device management through Microsoft Intune

These tools work together to simplify how users create, collaborate, and stay productive—no matter where they work.

Built-in Security for Modern Threats

Security is built into Business Premium to help small businesses stay protected without needing enterprise-level infrastructure. Key capabilities include:

• Microsoft Intune for mobile device and app management
• Azure Active Directory Premium P1 for access and identity controls
• Microsoft Defender for Business for endpoint protection
• Conditional access policies to enforce role-based access
• Built-in advanced threat protection features to combat phishing and malware

These features are packaged to support security best practices without requiring extensive configuration.

Business Premium supports up to 300 users per license tenant, which suits most SMBs with steady or moderate growth. It includes access to Microsoft 365 apps, basic data loss prevention (DLP), and mobile device management features. Organizations that outgrow the 300-user limit may need to explore options like E3 or hybrid licensing.

Microsoft 365 Business Premium is ideal for small and medium-sized businesses that need advanced security and productivity tools in one plan. It’s a smart option for IT teams looking for built-in functionality, manageable licensing, and enough flexibility to support business growth without stepping into enterprise territory.

Evaluating Microsoft 365 E3 for Complex Business Requirements

Microsoft 365 E3 is built for organizations that demand more from their Microsoft environment—more scalability, more control, and more compliance support. It extends the foundation provided by Business Premium with enterprise-grade capabilities that suit larger teams, hybrid infrastructures, and industries with strict regulatory oversight.

E3 offers a broader, more flexible license model with no user cap, making it ideal for growing enterprises. Key features include:

• Unlimited user support under the Microsoft 365 plan
• Full suite of Microsoft 365 apps including Word, Excel, PowerPoint, Outlook, and OneDrive
• Exchange Online with larger mailbox size
• Microsoft Teams and SharePoint for collaboration and file management
• Integration with Power BI, Power Automate, and Power Apps for business intelligence and automation

Enhanced Compliance Tools for Regulated Industries

Microsoft 365 E3 enhances compliance readiness through advanced data controls and auditing capabilities:

• Microsoft Purview for managing retention, archiving, and data lifecycle
• eDiscovery and legal hold features for secure investigations
• Information protection policies to manage sensitive content
• Advanced auditing to meet ongoing regulatory requirements

These tools provide centralized control over organizational data and help meet various industry-specific obligations.

Security Capabilities Compared to Business Premium

While both E3 and Business Premium include solid baseline protection, E3 adds capabilities more aligned with enterprise risk management:

• Azure Active Directory Premium P1 for identity and access controls
• Microsoft Defender for Office 365 to protect against malware, phishing, and other threats
• Conditional access and MFA support for access management
• Microsoft Intune for enterprise-level mobile and desktop device management
• Ability to add Azure Information Protection and Microsoft Defender for Endpoint as needed

Unlike Microsoft 365 E5, E3 doesn’t include every advanced security feature (such as Azure AD Premium P2), but it provides a strong foundation with the flexibility to layer in additional protection where needed.

Microsoft 365 E3 is ideal for larger organizations, especially those in regulated industries or operating across multiple sites. It suits IT leaders and tech managers who need flexible licensing, detailed compliance support, and expanded security tools—all within one platform that can grow with the business.

Comparing Key Differences Between Business Premium and E3

Choosing between Microsoft 365 Business Premium and E3 starts with understanding the differences in user limits, features, and overall value. These variations help determine which plan supports your organization's size and strategic direction.

Here’s how the two plans compare at a glance:

• User Capacity
  • Business Premium: Supports up to 300 users
  • E3: No user limit
• Security and Compliance
  • Business Premium: Includes Microsoft Defender for Business, Intune, Azure AD Premium P1
  • E3: Adds Microsoft Purview, eDiscovery, advanced auditing, and archiving features
• Productivity Tools
  • Both: Include Microsoft 365 apps (Excel, PowerPoint, Outlook), OneDrive, Microsoft Teams, and SharePoint
• Device Management
  • Both: Offer Microsoft Intune and Windows Autopilot for mobile and desktop management
• Pricing and Licensing Value
  • Business Premium: More cost-effective for SMBs with straightforward needs
  • E3: Higher price point, but better suited for organizations needing deeper compliance and scalability

Both plans deliver strong functionality, but the right choice comes down to how much flexibility, control, and security your organization requires—and how many users you need to support.

Deciding Which Plan Matches Your Priorities

Microsoft 365 Business Premium is often the right fit for growing SMBs with clear budgets and a need for productivity tools and advanced security. It meets most core needs without extra cost or complexity, making it easier for IT teams to manage users, devices, and data.

E3 is better suited for larger organizations or those with regulatory requirements that go beyond the basics. With enhanced compliance tools, expanded archiving, and enterprise-level security features, it gives IT managers the depth and flexibility they need.

Some businesses use both plans within the same environment. For example, frontline staff may use Business Premium, while legal, finance, or IT departments rely on E3 for more advanced compliance tools. This hybrid licensing approach helps balance cost and functionality.

Selecting the right plan means assessing your internal teams, compliance demands, and how your users work. Consider where your organization is headed—not just what you need today.

Maximizing Microsoft Licensing with Fusion Connect

Many businesses end up paying too much or using too little of what their Microsoft 365 plans offer. Without the right insights into license usage, renewals, or feature adoption, it’s easy to misalign your investment with your actual business needs.

Fusion Connect helps solve that. As a Microsoft Cloud Solution Provider, we work closely with IT leaders to evaluate how their organization is using Microsoft 365 and uncover ways to optimize. That includes identifying underused features, adjusting license counts, and helping teams fully benefit from the advanced functionality they’re already paying for.

Our Microsoft Licensing services include proactive license management, flexible options to match changing business requirements, and 24/7 US-based support. When needed, we escalate directly to Microsoft’s higher-tier support, so your IT staff stays focused on strategy—not ticket queues

Whether you're deploying Microsoft 365 Business Premium, E3, or both, Fusion Connect helps align licensing with your security needs, compliance goals, and long-term IT strategy.

Smarter Ways to License Microsoft Applications and Cloud Solutions

Choosing between Business Premium and E3 depends on your organization’s size, compliance requirements, and internal IT priorities—but choosing the right partner to manage those licenses makes an even bigger impact.

Fusion Connect is here to guide you every step of the way. From helping you select the best-fit Microsoft 365 plan to ongoing support and license management, we ensure your Microsoft Licensing delivers full value.

Fusion Connect is a Microsoft Cloud Solution Provider.

Article orginally posted on April 24, 2024 by Fusion Connect.