Microsoft 365 Business Premium vs E3
97 shared features. 36 M365 E3 exclusives.
Last updated 2026-02-15
M365 Premium
Microsoft 365 Business Premium
97 features included
Core productivity + baseline security
Conditional Access, Defender P1
M365 E3
Microsoft 365 E3
133 features included
Everything in M365 Premium + advanced security
Defender P2, advanced compliance, Phone System
Overview
Microsoft 365 Business Premium and E3 are the two plans IT decision-makers most often weigh against each other, and the overlap is deceptive. Both include the full desktop Office suite, Exchange Online, SharePoint, Teams, Intune Plan 1, and Entra ID P1. At first glance, Business Premium at $22/user/month looks like E3 at $36/user/month with a 39% discount.
The differences are structural. Business Premium caps at 300 users and includes Defender for Office 365 Plan 1 with Safe Links, Safe Attachments, and anti-phishing—security features E3 does not include out of the box. E3 removes the user cap, adds Windows 11 Enterprise with advanced device management (Credential Guard, Device Guard, AppLocker, Windows Autopatch), full Config Manager rights, Windows Server CAL rights, and 36 features Business Premium cannot access.
The decision comes down to organizational size and infrastructure complexity. If you are under 300 users and do not need Windows enterprise management or on-premises server rights, Business Premium delivers better security per dollar. If you exceed 300 users or need enterprise Windows and server licensing, E3 is the only option.
Breakdown by Category
| Category | Shared | M365 E3 Only | Total |
|---|---|---|---|
| Devices | 22 | 19 | 41 |
| Security | 4 | 9 | 13 |
| Productivity | 18 | 4 | 22 |
| Identity | 24 | 2 | 26 |
| Compliance | 10 | 1 | 11 |
| Collaboration | 19 | 1 | 20 |
Feature Comparison
| Feature | M365 Premium $22 | M365 E3 $36 |
|---|---|---|
Delve PRD | — | ✓ |
InfoPath App PRD | — | ✓ |
| — | ✓ | |
Live Events PRD | — | ✓ |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
Azure RMS CMP | — | ✓ |
Config Manager DEV | — | ✓ |
| — | ✓ | |
| — | ✓ | |
Always On VPN DEV | — | ✓ |
App Assure DEV | — | ✓ |
| — | ✓ | |
BranchCache DEV | — | ✓ |
Custom Logon DEV | — | ✓ |
Custom Shell DEV | — | ✓ |
Credential Guard SEC | — | ✓ |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
Device Guard SEC | — | ✓ |
DirectAccess DEV | — | ✓ |
Keyboard Filter DEV | — | ✓ |
| — | ✓ | |
MDOP (retiring) DEV | — | ✓ |
| — | ✓ | |
| — | ✓ | |
SMB Direct DEV | — | ✓ |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
| — | ✓ | |
Office Servers SEC | — | ✓ |
Who Should Choose M365 Premium?
Business Premium is the right choice for organizations with 300 or fewer users that need strong security without enterprise infrastructure complexity. It is the only plan under the E5 tier that includes Defender for Office 365 Plan 1 (Safe Links, Safe Attachments, anti-phishing), giving small and mid-size businesses email threat protection that E3 users must buy separately. At $22/user/month, it saves $14/user/month compared to E3 while adding security features E3 lacks. Choose Business Premium if you are an SMB, an MSP managing small clients, or a startup that needs enterprise-grade email security at a business-tier price.
Who Should Choose M365 E3?
E3 is built for organizations that have outgrown the 300-user cap or need enterprise-grade device and infrastructure management. E3 includes Windows 11 Enterprise with Credential Guard, Device Guard, and AppLocker, plus Config Manager, Windows Autopatch, Windows Server CAL rights, and Windows Virtualization Rights. These are essential for enterprises managing complex device fleets, running on-premises servers, or requiring advanced endpoint hardening. If you need Defender for Endpoint Plan 1, on-premises Active Directory RMS, or DirectAccess, E3 is the minimum tier. Organizations in regulated industries that need these infrastructure controls alongside their productivity suite should start here.
Cost Analysis
M365 Premium monthly
$22
M365 E3 monthly
$36
Monthly delta
+$14
Annual delta (per user)
+$168
The Verdict
For organizations under 300 users, Business Premium at $22/user/month is the better value. It includes Defender for Office 365 Plan 1 (Safe Links, Safe Attachments, anti-phishing) that E3 lacks, saving $14/user/month. E3 at $36/user/month is necessary when you exceed 300 users, need Windows enterprise features (Credential Guard, Device Guard, Autopatch), Config Manager, or Windows Server CAL rights. Do not pay the E3 premium solely for productivity features—the core Office and collaboration suite is identical between both plans.