Skip to content

Microsoft E5 Add-On Licensing Guide

Microsoft offers E5 Security and E5 Compliance as powerful add-ons to enhance your security and compliance posture within the Microsoft 365 ecosystem. These add-ons can be purchased separately or bundled with Microsoft 365 E5, depending on your organizational needs and security requirements.


Ideal for: Organizations looking to protect against external cyber threats, manage identities, and secure endpoints.

The Microsoft 365 E5 Security add-on is designed to provide advanced security capabilities that protect against sophisticated cyber threats.

ComponentCapabilityBusiness Value
Microsoft Defender for IdentityMonitors compromised identities and lateral movementAdvanced identity threat protection
Microsoft Defender for Cloud AppsCASB for cloud application securityControl over cloud-based app security
Microsoft Defender for Office 365Advanced phishing and malware protectionEnhanced email and collaboration security
Microsoft Defender for EndpointAdvanced threat detection and automated responseComprehensive endpoint protection
Azure Active Directory Premium P2Risk-based conditional access and PIMAdvanced identity protection
  • $12 per user/month as an add-on to Microsoft 365 E3

Ideal for: Organizations that need to meet strict regulatory requirements, manage legal investigations, and ensure data governance.

The Microsoft 365 E5 Compliance add-on focuses on managing risks, governing sensitive data, and adhering to regulatory requirements.

ComponentCapabilityBusiness Value
Advanced eDiscoveryEnd-to-end investigation workflow managementStreamlined legal and compliance investigations
Insider Risk ManagementDetection of internal threats and data leaksProtection against insider risks
Information Protection & GovernanceData classification, labeling, and retentionComprehensive data governance
Communication ComplianceMonitoring inappropriate communicationsRegulatory compliance enforcement
Customer LockboxExplicit approval for Microsoft data accessEnhanced data privacy control
  • $12 per user/month as an add-on to Microsoft 365 E3

AspectE5 SecurityE5 Compliance
Primary FocusExternal threat protectionRegulatory compliance and data governance
Key ComponentsDefender suite, Azure AD P2eDiscovery, insider risk, data governance
Target Use CasesCybersecurity, identity protectionLegal compliance, data management
Business ValueThreat prevention and responseCompliance and risk management

  • Needs advanced protection against cyber threats
  • Requires comprehensive endpoint security
  • Wants enhanced identity and access management
  • Focuses on threat detection and response

Select E5 Compliance if your organization:

Section titled “Select E5 Compliance if your organization:”
  • Must meet strict regulatory requirements
  • Needs comprehensive data governance
  • Requires legal investigation capabilities
  • Focuses on insider risk management

Critical Recommendation: Before upgrading to Microsoft 365 E5 Security or E5 Compliance, ensure your organization has fully implemented and is utilizing the features already included in Intune and Entra ID (Azure Active Directory Premium P1).

CapabilityCurrent UtilizationE5 Enhancement
Mobile Device Management (MDM)Device enrollment and policy enforcementEnhanced with Defender for Endpoint integration
Mobile Application Management (MAM)App protection and data policiesExtended with advanced threat protection
Security Policy EnforcementBasic compliance settingsAugmented with automated remediation
CapabilityCurrent UtilizationE5 Enhancement
Single Sign-On (SSO)Unified access to applicationsEnhanced with risk-based access
Conditional AccessBasic access policiesAdvanced with behavioral analytics
Multi-Factor Authentication (MFA)Additional identity verificationIntegrated with advanced threat detection

  1. Evaluate Current Intune Deployment

    • Assess device enrollment coverage
    • Review security policy implementation
    • Identify gaps in mobile application management
  2. Review Entra ID P1 Utilization

    • Analyze SSO integration status
    • Evaluate conditional access policies
    • Assess MFA adoption rates
  1. Maximize Intune Features

    • Deploy comprehensive device compliance policies
    • Implement application protection policies
    • Establish security baseline configurations
  2. Enhance Entra ID P1 Implementation

    • Expand conditional access coverage
    • Increase MFA adoption across applications
    • Optimize SSO integration
  1. Assess E5 Security Requirements

    • Identify advanced threat protection needs
    • Evaluate endpoint security gaps
    • Determine identity protection requirements
  2. Evaluate E5 Compliance Needs

    • Assess regulatory compliance obligations
    • Identify data governance requirements
    • Determine legal investigation capabilities

ApproachRiskRecommendation
Skip Foundation, Direct E5 UpgradeHigh - Underutilization of expensive featuresNot recommended
Foundation First, Strategic E5 UpgradeLow - Maximum ROI on investmentRecommended approach

Key Insight: Fully deploying and leveraging Intune and Entra ID P1 before considering E5 upgrades ensures your organization maximizes the value of each investment and avoids unnecessary spending on underutilized capabilities.


Key Takeaway: Microsoft 365 E5 Security and E5 Compliance add-ons provide powerful capabilities for organizations with advanced security and compliance needs. However, the strategic approach is to first establish a solid foundation with Intune and Entra ID P1 before upgrading to these premium offerings.

For organizations requiring both advanced security and compliance capabilities, Microsoft 365 E5 combines the features of both add-ons, simplifying management and potentially offering better overall value compared to purchasing separate add-ons.

This strategic approach helps maximize the value of your investment and ensures your organization is ready for the advanced security and compliance features included in the E5 plans.