Compare Microsoft Office 365 Plans & Features: Choose the Best One
Before migrating to the cloud, choosing a reliable Office 365 license is critical. Therefore, to help you figure it out for your business, we are going to compare Office 365 plans and features in detail. This Office 365 license comparison will help users choose their organization correctly. Most Office 365 lineup is now absorbed under the Microsoft brand name. With just a few enterprise-grade distinctions. Cost is the most important factor in determining the overall ROI of a service. Let’s check where different variants of Microsoft 365 plans stand.
Table of Contents
Compare Office 365 Plans & Features: Office 365 Business & Enterprise Licenses Price Comparison
Price is the first thing that decision-makers ask while comparing Office 365.
Plan | Monthly Cost | Annual Cost |
Microsoft 365 Business Basic | $5.7/User | $57/User |
Business Basic With Teams | $7.2/User | $72/User |
Microsoft 365 Business Standard | $12.3/User | $123/User |
Business Standard With Teams | $15/User | $150/User |
Microsoft 365 Business Premium | $23.7/User | $237/User |
Business Premium With Teams | $26.4/User | $264/User |
Microsoft 365 Apps for Business
Excel, Word, PowerPoint, & Outlook |
$9.9/User | $99/User |
Microsoft 365 Apps for Enterprise | — | $12 x 12/User |
Microsoft 365 E3 (no Teams) | — | $33.75 x 12/User |
Microsoft 365 E5 (no Teams) | — | $54.75 x 12/User |
Microsoft 365 F1 | — | $2.25 x 12/User |
Microsoft 365 F3 | — | $8 x 12/User |
Office 365 E1 (no Teams) | $9.3/User | $93/User |
Office 365 E3 (no Teams) | $24.9/User | $249/User |
Office 365 E5 (no Teams) | $42.9/User | $429/User |
Microsoft Teams Enterprise | $6.3/User | $63/User |
Microsoft Teams Essentials | $4.80/User | $48/User |
Windows 365 Basic | — | $31/User/Month |
Windows 365 Standard | — | $41/User/Month |
Windows 365 Premium | — | $66/User/Month |
Annual Costs of Different Microsoft 365 Plans
From this table, we can extract these points while comparing Office 365 Plans:
- Microsoft 365 Business plans are designed for smaller businesses and typically include core applications like Word, Excel, PowerPoint, and Outlook. Some plans include Teams for collaboration features.
- Microsoft 365 Apps plans provide access to the core productivity applications without the additional services included in other Microsoft 365 plans.
- Microsoft 365 Enterprise plans (E3 and E5) offer a broader range of features and security options for larger organizations. The pricing listed is per user, per year.
- A new subcategory of plans for frontline personnel is also available under the F-N category. These are typically cheaper with access to Teams as well.
- Microsoft Teams is a collaboration application available in some Microsoft 365 and Office 365 plans. There are also separate subscription plans for Teams only.
- Windows 365 provides a cloud-based Windows desktop experience. The pricing listed is per user per month.
Comparing Microsoft Office 365 Business Plans
Renamed to Microsoft 365 Business. These plans are developed for small businesses with fewer than 300 employees. Let us check out what is included in each Office 365 Business plan for small-scale companies.
Microsoft 365 Business | Basic | Standard | Premium |
Word | ✔️
Web/Mobile Only |
✔️ | ✔️ |
Excel | ✔️
Web/Mobile Only |
✔️ | ✔️ |
PowerPoint | ✔️
Web/Mobile Only |
✔️ | ✔️ |
Outlook | ✔️
Web/Mobile Only |
✔️ | ✔️ |
Teams | ✔️ | ✔️ | ✔️ |
OneDrive | ✔️ | ✔️ | ✔️ |
SharePoint | ✔️ | ✔️ | ✔️ |
Exchange | ✔️ | ✔️ | ✔️ |
Clipchamp | ✔️ | ✔️ | |
Microsoft Loop | ✔️ | ✔️ | |
Microsoft Entra ID | ✔️ | ||
Intune | ✔️ | ||
Microsoft Defender for Business | ✔️ | ||
Azure Information Protection | ✔️ |
1. Microsoft 365 Business Basic
Features:
- OneDrive Storage space of 1 TB
- SharePoint
- Microsoft Team chat-based workspace
- Microsoft Planner: To manage tasks and teamwork
- Yammer: To collaborate across departments and locations
- 24*7 Web and Telephonic Support
- Manage up to 300 users & get custom email addresses.
- Stay secure with automatic spam & malware filtering.
2. Microsoft 365 Business Standard
Features:
- OneDrive with storage space of 1 TB
- FastTrack deployment support
- 24*7 Web and Phone Support
- Desktop Version of MS Office 2016 Suite: Outlook, Excel, Word, OneNote, and PowerPoint
- A web version of MS Office 2016 Suite: Outlook, Excel, Word, and PowerPoint
3. Microsoft 365 Business Premium
Features:
- OneDrive Storage space of 1 TB
- Custom email domain addresses with 50 GB mailbox storage space
- Skype for Business Purposes
- SharePoint
- Desktop versions of Office 2016 applications: Outlook, Word, PowerPoint, etc.
- Microsoft Bookings: To enable customers to schedule appointments
- Managing tasks and teamwork using Microsoft Planner
- FastTrack Deployment Support
- 24*7 Telephonic and Web Support
Office 365 Enterprise Plans
For companies that have just started or require limited functionalities, Office 365 Business plans work best. But for organizations with 300+ users for them, Office 365 Enterprise plans are the most suitable. With Enterprise plans, one can choose from Office 365 E5, E3, or E1 licenses. However, due to some anti-trust regulations, Microsoft has separated the Teams app from all its enterprise editions. You can still subscribe to it separately.
1. Office 365 Enterprise E1
Features:
- 50 GB Mailbox Online Storage Space
- Skype for Business web conferencing, IM, online meetings and presence
- OneDrive for Business
- SharePoint, Yammer, Video Sharing, HD video conferencing, Data Governance
- File sharing and 1 TB OneDrive storage
- eDiscovery search
2. Office 365 Enterprise E3
Features:
- A popular option for digital-driven business
- Include all the features of Office E1 Licenses
- Office Client Apps
- Legal Compliance and Archiving needs for email
- Message encryption, rights management, data loss prevention
- Azure Rights Management and document management functions
- Unlimited OneDrive storage
- Email storage for in-place archive
- eDiscovery legal hold and eDiscovery export tool and case management
- Hosted voicemail support
3. Office 365 Enterprise E5
Features:
- Includes all features of E3 and E5 Licenses
- Enhanced security features: Secure attachments and URLs and access controls, Advanced eDiscovery
- Enterprise voice with Skype for Business
- Skype for Business Cloud PBX
- PSTN conferencing
- Cloud-based call management
- Unlimited OneDrive storage
- Advanced analytics with Power BI Pro and Microsoft MyAnalytics
- Enhanced visibility and control of your Office 365 environment
- Advanced eDiscovery and Data Governance
- Customer Lockbox and Advanced Threat Protection
Comparing Office 365 Plans E1, E3 & E5
Start the Office 365 E1 vs E3 vs E5 comparison by identifying plan highlights:
Office 365 E1
If administrators are completely new to the enterprise-grade cloud, this plan is a great starting point. It covers almost all the basic features (emails & file sharing) an organization would require to manage its day-to-day operations.
However, this relatively lightweight edition has no desktop apps. It more than makes up for it with its web-based counterparts. Being on the lowest price out of all the available options, this is the go-to plan for those who have a tight budget.
Office 365 E3
The middle option may be the best of both worlds, combining app availability with security at an affordable price. It is the cheaper option for accessing desktop apps on up to 5 PCs. Moreover, it builds up on the 5 layer security present in E1. Some highlighted features are message encryption, DLP for email and files, and a rights management portal.
Office 365 E5
The top-of-the-line cloud subscription option allows for a complete Office experience. The inclusion of even more advanced capabilities in both security, as well as compliance, makes it the best choice if you work with critical data.
However, not everything between these apps is different so check out some points that tell us they are part of the same family.
View Similarities Before Checking the Difference Between Office 365 E1, E3, and E5
- All three plans are available on a subscription-based model, which can either be paid for monthly or yearly.
- None of them include an MS Teams subscription. Microsoft has made Teams into a separate product pack for which organizations have to pay extra.
- Co-Pilot the AI integration feature can be added to any of the Office enterprise subscriptions.
- Moreover, admins get access to the admin center for monitoring and managing user activity no matter the plan their organization opts for.
- The web/mobile-based applications are also identical. The same can be said for email and other basic tasks.
- Now we are ready to see the points where they differ from each other. As price is the first thing in the minds of organizations let’s start from there.
Compare Office 365 E1 E3 E5 Price
Price | Monthly Price | Yearly Price |
---|---|---|
Office 365 E1 | $9.30 | $93.00 |
Office 365 E3 | $24.90 | $249.00 |
Office 365 E5 | $42.90 | $429.00 |
Source: Microsoft
Subscription length and billing frequency date are two different things. If you select the annual subscription category you can set the billing to the lowest amount even if you pay monthly.
However, if your subscription length is on a monthly renewal cycle then you pay $1.65, $4.25, and $7.25 more on a per-user basis for E1, E3, and E5 respectively. So if you want to check out the subscription we suggest you go for a 1-month trial. After the trials end you are automatically put on an annual cycle.
These prices are in US dollars if you purchase directly from Microsoft. It may vary based on your geographical location. Moreover, taxes and vendor costs may make the actual price you pay a little different from what you see here.
We want to inform readers that price is just one part of the total value proposition. It is the features you get in a plan that prove if your money’s worth or not. Moreover, the addition of the features the apps you get alongside helps to get a better idea of what’s different between the enterprise editions. So to help you we offer a tabular layout with all apps and the plans that contain them.
Office 365 E1 vs E3 vs E5 Comparison on App Availability
Apps | Office 365 E1 | Office 365 E3 | Office 365 E5 |
Word | ✔, (Mobile / Web) | ✔ | ✔ |
Excel | ✔, (Mobile / Web) | ✔ | ✔ |
PowerPoint | ✔, (Mobile / Web) | ✔ | ✔ |
Outlook | No | ✔ | ✔ |
OneDrive | ✔ | ✔ | ✔ |
Microsoft Access | No | ✔ (PC only) | ✔ (PC only) |
Microsoft Publisher | No | ✔ (PC only) | ✔ (PC only) |
Exchange | ✔ | ✔ | ✔ |
SharePoint | ✔ | ✔ | ✔ |
Viva Engage | ✔ | ✔ | ✔ |
Viva Insights | ✔ | ✔ | ✔ |
Microsoft Bookings | ✔ | ✔ | ✔ |
OneNote | No | ✔ | ✔ |
Delve | ✔ | ✔ | ✔ |
Microsoft Stream | ✔ | ✔ | ✔ |
Sway | ✔ | ✔ | ✔ |
Microsoft Forms | ✔ | ✔ | ✔ |
Power Apps | ✔ | ✔ | ✔ |
Power Automate | ✔ | ✔ | ✔ |
Microsoft Planner | ✔ | ✔ | ✔ |
Microsoft To Do | ✔ | ✔ | ✔ |
Power BI Pro | No | No | ✔ |
On a strict app matchup, almost all E5 apps are available in the E3 edition except for Power BI Pro. However, the E1 category lags behind the other two quite a bit. Especially, the lack of desktop options for core apps like Word, Excel, and PowerPoint. This limits the offline work that can be done even with a premium plan. Next, our discussion moves toward another major point, which is security.
Security Difference Between Office 365 E1, E3, and E5
No administrator wants to move their organization to an insecure cloud environment. There is no doubt that Microsoft provides top-notch Office 365 security for all their products. However, there is a significant difference among them that may lead to the admin selecting one plan over the other. Check out what they are.
Available in all O365 plans (E1, E3, E5):
- Basic Security: Multi-factor authentication, antimalware protection
- Content Search
- Manual Retention Labels
- Audit (Standard)
Present in Office 365 E3 and E5 version:
- Microsoft Editor premium features
- Multilingual user interface for Microsoft 365 apps
- Inactive Mailboxes
- Auto-expanding email archive
- Exchange Plan 2 (100 GB mailbox + up to 1.5 TB archive)
- SharePoint Plan 2 (1+ 10 TB OneDrive storage)
- DLP for emails & files
- Manual, default, and mandatory sensitivity labeling in Microsoft 365 apps
- Group Policy support for Microsoft 365 apps
- Cloud Policy service for Microsoft 365 (Full access)
- Shared computer activation for Microsoft 365 apps
- Basic org-wide or location-wide retention policies
- eDiscovery (Standard) (including Hold and Export)
- Litigation Hold
Available only in Office 365 E5 variant:
- Audit (Premium)
- DLP for Teams chat
- Premium personal insights and experiences
- Automatic sensitivity labeling in various Microsoft 365 apps and services (Exchange, SharePoint, OneDrive, Teams chat)
- Sensitivity labels based on advanced classifiers
- Default sensitivity labels for SharePoint document libraries
- Advanced Message Encryption
- Customer Key
- Microsoft Defender for Office 365 Plan 2
- Rules-based automatic retention policies
- Records Management
- eDiscovery (Premium)
- Communication Compliance
- Information Barriers
- Customer Lockbox
- Privileged Access Management
Difference Between Enterprise Edition of Office 365 and Microsoft 365
Office 365 Enterprise edition beats the newer Microsoft 365 version on price. It also has an extra edition on the starting side of the spectrum tagged E1. However, organizations can’t add Co-Pilot with this plan. Other than that the common Apps in both Office 365 E5 and Microsoft 365 E5 variants are as follows.
- Word
- Excel
- PowerPoint
- Outlook
- OneDrive
- OneNote
- Microsoft Stream
- Microsoft Bookings
- Microsoft Forms
- Sway
- Microsoft Planner
- Microsoft To Do
- Power Apps
- Power Automate (potentially included in Power Apps)
Apps Only in Office category:
- Microsoft Access (PC only)
- Microsoft Publisher (PC only)
- Exchange (email server software)
- Delve (social networking for work)
Apps Only in Microsoft 365:
- Windows (operating system)
- Microsoft Lists (web-based list management)
- Clipchamp (video editing)
- Microsoft Loop (real-time collaboration)
- Visio (diagramming tool)
- Power BI Pro (advanced business intelligence)
How Microsoft 365 Enterprise and Business Plans are Different from Each Other?
- Up to 300 employees can be managed easily via the business edition. When the number of personnel increases beyond this, it is encouraged to move on to enterprise-grade.
- Cost is the biggest differentiator. Enterprise plans are the more expensive variant; even the cheapest enterprise-grade plan is $10 more costly than the premium business plan.
- All Business grade plans have a with or without teams option. For enterprise plans, organizations have to get the Teams subscription separately.
- Other than Teams, Enterprise plans have a wider selection of Microsoft apps available for users when compared to their business-level counterparts.
Even the enterprise-grade, has variants. Among them, a cost-effective option for organizations can be the F series of plans. Designed for frontline workers those who provide goods or services to customers directly.
These plans come with the premium Teams subscription. So if communication is something you cannot go without then this plan might be the best for you.
Purchasing a new plan is easy but shifting the entire workforce there is not. So that’s why it’s better to rely on a trusted Office 365 to Office 365 migration utility. It can help you align the user data with their new plan.
Other than the intra-cloud upgrade, there are instances where organizations using alternative cloud solutions want to move to Microsoft 365. For that, too we. have the right tools for the job.
- Scenario 1. Admins who want to shift from G Suite to Office 365 can do it with our migration utility.
- Scenario 2. There is also the option to migrate Lotus Notes to Office 365 without any data loss.
- Scenario 3. There is a chance that you are reading this because you have an on-premise. Don’t worry, as we offer a solution to transition from Exchange On-Premise to Office 365 cloud.
Conclusion
In this blog, we have compared Office 365 plans and features of Microsoft 365 business and enterprise licenses with each other. So, that a user can make a correct decision by selecting an appropriate Office 365 plan for his/her business.
Frequently Asked Questions
Q1. Is the annual subscription plan more cost-effective than the monthly plan?
The monthly option ends up being costlier in the long term, as with the annual plan, you get 2 free months. Adding 16% more savings on top of the 30% employee discount. Users might want to first try out the service and for that, they can use the free trial. Keep in mind that enterprise-grade plans don’t have a free trial option.
Q2. I have a poor connection problem, So I am looking to buy the desktop-only Office 2021. But many experts say that it is a poor choice. Can you tell me why?
Is there a new desktop-only Office suite coming out soon?
The last desktop-only variant of the Microsoft business suite came back in 2021. Previously, Microsoft released a new version every 2-3 years, but it’s 2024 and there’s still no sign of a new desktop version.
Q3. Why do experts say that a new desktop-only Office suite may not come? So should I purchase the current available one?
Although, the end of the life cycle of the current version is due on Oct 13, 2026. So, we still have a few more years, but it is unlikely that we will get an offline version in the future. There are multiple reasons for this. Above all, there is no doubt that it is far more profitable to have a subscription-based model. Moreover, updates can be deployed in real-time across the globe. And the new industrial trends like AI use the cloud-based model as their foundation.
In the end, understanding your use case is the best way to make the final decision. So, you can go for the desktop variant if you want. The cloud is always available, just a few clicks away.