Microsoft 365 Business Premium vs. E3 - The Ultimate Comparison Guide

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Microsoft 365 is a cloud-enhanced version of the traditional Microsoft Office suite of applications. It's designed to facilitate remote work and increase productivity by enabling employees to work from anywhere and collaborate effectively using an internet connection.

Microsoft 365 Business Premium and E3 are two separate versions of Microsoft 365 designed to meet different business requirements. Microsoft 365 Business Premium caters to smaller to medium-sized enterprises with features like email hosting, online storage, and various productivity tools.

On the other hand, Microsoft 365 E3 targets larger enterprises and offers more sophisticated capabilities such as enhanced security and compliance monitoring and advanced data analytics capabilities.

This blog post will compare Microsoft 365 Business Premium vs E3, so small businesses/IT decision makers/CXOs can determine which version best meets their individual requirements.

Microsoft 365 Business Premium

Microsoft 365 Business Premium

Microsoft 365 Business Premium is a subscription-based software suite tailored for small and medium-sized businesses (SMBs).

Microsoft launched Microsoft 365 Business Premium in 2017 as an all-inclusive solution for small to medium-sized businesses looking to modernize their IT infrastructure and take advantage of cloud computing. The suite gives access to various Microsoft applications and services such as:

  • Word
  • Excel
  • PowerPoint
  • Outlook
  • Teams
  • SharePoint
  • OneDrive
  • Power BI

These applications enhance productivity, communication, collaboration, and data analysis within businesses.

Microsoft 365 Business Premium also provides enhanced security features to safeguard businesses against cyber threats, such as advanced threat protection, data loss prevention measures, and identity and access management tools that ensure only authorized personnel can access sensitive business data and applications. It also offers a centralized dashboard for managing devices, applications, and users, simplifying IT management tasks by eliminating the need for specialized IT teams.

The features, advantages, challenges, and limitations of Microsoft 365 Business Premium are discussed below in greater depth.

Microsoft 365 Business Premium Features

Microsoft 365 Business Premium includes productivity and cyber security software features and gives SMBs access to various business applications like Microsoft Bookings, MileIQ, and StaffHub. These tools can help streamline operations while increasing productivity.

Here is more detail on each feature:

Business-Class Email and Calendar

Microsoft 365 Business Premium provides businesses with enterprise-class email and calendar capabilities.

Businesses can take advantage of its 50 GB mailbox per user and 150 MB attachment limit, allowing employees to store many emails and share large files easily. Furthermore, it provides several advanced email features like automatic spam filtering, malware protection, and message encryption, which helps protect user emails from cybersecurity threats.

The intuitive calendar feature helps users stay organized and manage their schedules effortlessly. It enables easy meeting, appointment, and event scheduling with reminders, as well as the ability to share calendars with colleagues. This simplifies the scheduling process so everyone is on the same page about upcoming events and deadlines.

Online Meetings, Chat, and Audio and Video Calls

Microsoft 365 Business Premium includes Microsoft Teams, which is a powerful platform for online meetings, chat, and audio and video calls, allowing team members to work together seamlessly no matter where they are.

The benefits of Microsoft Teams include:

  1. Enables group chat sessions and real-time document collaboration
  2. Provides online meeting features for virtual meetings with team members or external partners
  3. Allows users to schedule meetings and join from desktop or mobile devices for added flexibility
  4. Offers high-quality audio and video calling for easy one-on-one communication
  5. During calls, users can hold web conferences, share screens, and collaborate on documents in real-time

Cloud Storage and File Sharing

Cloud Storage and File Sharing

Microsoft 365 Business Premium provides employees with 1 TB of OneDrive cloud storage per user, allowing users to store and share documents, photos, and other files anywhere on any device.

OneDrive also facilitates file sharing, making it effortless to collaborate with team members, partners, and clients. Furthermore, OneDrive lets everyone edit documents in real time so everyone is working on the most up-to-date version of a file.

With the Microsoft 365 Business Premium subscription plan, users are guaranteed to always have access to the most up-to-date versions of Office applications.

OneNote is also included, though features may differ depending on the platform. PC users also get access to Access and Publisher, both of which are unavailable for Macs.

Security and Device Management

The security and device management features that Microsoft 365 Business Premium includes allows IT teams to ensure the security of applications and devices from a centralized location.

  • Multi-factor authentication and data encryption: These work together to ensure that only authorized users can access company data. These tools support security features like MFA and Single Sign On, helping to ensure that only authorized individuals access sensitive information and help prevent data leaks.
  • Microsoft Defender and Advanced Threat Protection (ATP): These features protect against malware and cyber-attacks.
  • Exchange Online Protection (EOP): These are the email protection features offered by Microsoft 365 Business Premium to help small to medium businesses prevent malicious emails from reaching users. EOP comes standard in with Office 365.
  • Mobile Device Management (MDM) and Microsoft Intune: Microsoft 365 business premium includes both of these essential security features to make managing devices from a centralized location easier and more effective.

Here are some essential steps businesses can take to secure their Microsoft 365 environment and safeguard data and devices:

  1. Sign in and set up your environment: Navigate to the Microsoft 365 admin center and follow the instructions to add users, assign licenses, and configure your domain.
  2. Enhance your security protection: Increase the level of protection for your accounts by enabling multi-factor authentication, using features like role-based access control, privileged identity management, and Microsoft Defender for Endpoint to guard against cyber threats.
  3. Establish unmanaged (BYOD) devices: Assure that all devices are securely integrated into the ecosystem using Mobile Device Management (MDM), and apply policies to ensure these devices meet security requirements using Microsoft Intune.
  4. Utilize email securely: Guard yourself against malicious emails by being aware of potentially dangerous links and attachments, as well as using features like Exchange Online Protection (EOP) and Advanced Threat Protection (ATP).
  5. Collaborate and share securely: Collaborate securely with others using Microsoft Teams, SharePoint, and OneDrive while putting in place appropriate access controls to help prevent data leaks. Utilize features like Data Loss Prevention (DLP) and Information Rights Management (IRM) to restrict file usage and sharing.
  6. Setting up and securing managed devices: Gain insight into company device security using Mobile Device Management (MDM), BitLocker encryption, and Microsoft Intune for simplified device setup.

A brief table providing the highlights of all Microsoft 365 Business Premium features is given below:

Feature

Description

Business-Class Email and Calendar

Enterprise-class email and calendar capabilities with 50 GB mailbox per user and advanced email features

Online Meetings, Chat, and Calls

Microsoft Teams for online meetings, chat, and audio and video calls

Cloud Storage and File Sharing

1 TB of OneDrive cloud storage for storing and sharing files on any device

Office Apps

Access to the latest versions of popular Office apps like Outlook, Word, Excel, and PowerPoint

Business Applications

Additional business applications like Microsoft Bookings, MileIQ, and StaffHub

Security and Device Management Features

Multi-factor authentication, data encryption, Microsoft Defender, Advanced Threat Protection, and more

Microsoft 365 Business Premium Benefits

Microsoft 365 Business Premium Benefits

Microsoft 365 Business Premium provides small to medium-sized businesses with a host of tools to modernize their IT infrastructure. From enhanced security and straightforward management to affordable pricing, businesses can improve their productivity, collaboration, and data analysis. With these tools in place, businesses are also better able to take control of their infrastructure investments.

In this section, we will investigate these benefits in greater depth.

Designed for Small to Medium-Sized Businesses

Microsoft 365 Business Premium is tailored specifically to the needs of small to medium-sized businesses, including the standard office applications as well as, Invoicing/Bookings, MileIQ, Planner, Yammer, PowerApps, and Flow that help streamline processes and keep businesses organized.

Microsoft 365 Business Premium also provides the scalability to grow with your business, making it ideal for enterprises of any size.

Affordable Pricing

The Microsoft 365 Business Premium suite provides flexible a-la-carte feature options plans that enable businesses to choose add-ons (e.g., cybersecurity features, Teams phone systems, etc.). This allows some customization to the base plan to meet the needs of various businesses.

Microsoft 365 Business Premium is an attractive value option for small to medium-sized businesses (since it's capped at 300 users) that need powerful tools without breaking the bank. For larger enterprise businesses, Microsoft E3 is a better option.

Simplified Management

By providing a centralized and simplified management experience via an easy-to-use dashboard, IT teams can more easily control the security of all company applications and data.

Enhanced Security

Security for businesses should always be a top priority, and Microsoft 365 Business Premium offers enhanced security features to guard against cyber threats. The suite includes advanced threat protection, data loss prevention, and identity and access management tools that guard against phishing attacks, malware infections, and data breaches.

The suite's advanced security features guarantee businesses can protect their data and remain safe in today's rapidly evolving threat landscape.

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Challenges and Limitations

While Office 365 E3 Business Premium provides businesses with a host of advantages, it is essential to be aware of some of its drawbacks as well. Here are some key issues businesses should keep in mind when evaluating Microsoft 365:

Limited Functionality Compared to E3

Microsoft 365 Business Premium provides a suite of tools and features tailored specifically for small to medium-sized businesses, but the E3 version offers more advanced capabilities such as analytics and data analysis, plus sophisticated security and compliance controls. E3 was created with larger businesses in mind with more complex needs in mind.

Caps at 300 Users

One of the limitations of Microsoft 365 Business Premium is that it is capped at 300 seats. This makes it a good choice for small or medium businesses but makes E3 the obvious solution for larger businesses or businesses that are growing quickly.

Mailbox is Capped at 50GB

If your organization uses email as a primary communication tool and people are often sending larger files back and forth, then the 50GB mailbox limitation per user in Microsoft 365 Business Premium may not be enough. With E3, users gain double the mailbox storage at 100GB and can send attachments up to 150MB.

Microsoft 365 E3

Microsoft 365 E3

Microsoft 365 E3 is an advanced cloud services subscription plan that blends top-tier enterprise productivity applications with robust security and compliance capabilities.

As the “E” in the name implies, Microsoft 365 E3 is an enterprise-focused plan that empowers businesses to maximize productivity and collaboration through intuitive experiences. It also features advanced security measures that protect employees, data, and customer information from potential cyber threats.

Here is the breakdown of Microsoft 365 E3 features, benefits, and potential drawbacks for businesses:

Microsoft 365 E3 Features

Microsoft 365 E3 offers a robust set of features tailored for modern enterprises, from increasing productivity and streamlining processes to strengthening security and compliance. In short, this comprehensive suite provides businesses with everything they need to stay ahead in the digital era.

Here are some essential characteristics you should be aware of:

Everything in Business Premium (and more)

Microsoft 365 E3 includes all the features offered by Microsoft 365 Business Premium, providing small and medium-sized businesses with tools for increased productivity, collaboration, and security.

This includes fully installed and always up-to-date versions of Office applications, Exchange email, and calendar capabilities.

Advanced Security and Compliance

There are many advanced security and compliance features that Microsoft 365 E3 offers. These include Advanced Threat Protection to safeguard against sophisticated cyber threats and eDiscovery and Legal Hold capabilities, which make it simpler for businesses to abide by regulations and respond when regulatory bodies request information.

Microsoft 365 E3 also provides data loss prevention (DLP) policies, which help companies to detect and safeguard sensitive information. Additionally, Advanced Security Management offers insights into user and administrator activity across an organization.

Power BI Pro

Microsoft 365 E3 includes Power BI Pro, a business analytics service that empowers companies to analyze data and gain valuable insights. With Power BI Pro, businesses can create interactive dashboards and reports and access their information anytime from any device.

Authorized Power BI users can collaborate in real time and securely share insights within and outside the organization, making it simpler for businesses to make data-driven decisions.

Advanced Analytics

Microsoft 365 E3 includes a basic subscription to Microsoft Viva, which includes Viva Connections, which is essentially a company-wide social media network, and Viva Engage, which extends that network with short video “stories,” a Q&A section, analytics, and more. Viva allows management to gain insights into employee behavior to better understand the emotional well-being of their teams.

By harnessing the power of advanced analytics, organizations can gain invaluable insight into their operations and identify areas for improvement—ultimately leading to increased productivity and efficiency.

Advanced Voice and Video Conferencing

Microsoft 365 E3 allows businesses to communicate more efficiently using Microsoft Teams. By combining instant messaging with voice and audio conferencing features, all employee communications are handled in one place.

Microsoft 365 E3 also gives businesses the option to add on advanced calling features like auto-attendant, call queues, and voicemail which businesses can utilize for improved efficiency in communications and customer service.

Below is a brief table highlighting each feature:

Feature

Description

Includes everything from Business Premium

Includes all Microsoft 365 Business Premium features for increased productivity, collaboration, and security.

Advanced Security

Offers advanced security measures such as Advanced Threat Protection and DLP policies to protect against cyber threats and safeguard sensitive information.

Power BI Pro

Business analytics service for analyzing data and gaining valuable insights.

Advanced Analytics

Provides insights into employee behavior to help managers make decisions about their employee's well-being.

Voice and Video Conferencing

Advanced voice and video conferencing features in Microsoft Teams for improved communication and collaboration.

Microsoft 365 E3 Benefits

Microsoft 365 E3 Benefits

Microsoft 365 E3 is an extensive suite of productivity and collaboration tools that provides numerous advantages to organizations of all sizes. Here are some key highlights:

Suitable for Large Businesses

As software tailored to larger organizations, Microsoft 365 E3 features advanced security and compliance features essential for handling complex and sensitive data. The suite provides tools for better collaboration within large teams, leading to improved productivity and efficiency within these enterprises. It can also be customized according to individual company requirements, making Microsoft 365 E3 a flexible and scalable solution suitable for organizations of all sizes.

Enhanced Security and Compliance

Larger businesses often have robust security needs. Microsoft 365 E3 includes advanced security and compliance features. Businesses can protect their data with multi-factor authentication, data loss prevention, and encryption, as well as compliance tools that help organizations meet regulatory requirements such as GDPR or HIPAA—making it an ideal choice for organizations handling sensitive data.

Improved Collaboration

Better team collaboration can be realized with Microsoft 365 E3. For example, the included Microsoft Teams lets users work in real-time, share files, and hold virtual meetings from anywhere.

In addition, SharePoint allows teams to work on documents and projects within a shared workspace, while OneDrive makes it simple for individuals to access and work on shared files regardless of their location.

Challenges & Limitations

Microsoft 365 E3 is an impressive suite of productivity and collaboration tools offering many advantages for businesses of all sizes. However, there are also some drawbacks and limitations to take into account when determining if it's suitable for your business.

Here are two major drawbacks and limitations associated with Microsoft 365 E3:

1. Higher Pricing

One of the primary drawbacks to Microsoft 365 E3 is its higher pricing compared to Business Premium plans. This can be an impediment for smaller businesses with limited resources; however, it's essential to consider all of the features and benefits included in this plan as they may justify the additional expense for more complex needs.

2. May Have Features That Are Not Necessary for Smaller Businesses

Microsoft 365 E3 is tailored toward larger companies with more complex requirements. It includes features like advanced security, analytics, reporting, and voice/telephony capabilities that may not be necessary for smaller firms.

Microsoft 365 E3 vs Business Premium Comparison

As with most Microsoft products, it can be difficult to navigate the different features and pricing and determine which combination of products is the best choice for your company. Here is a table summarizing the differences between Microsoft 365 Business Premium vs E3:

Comparison

Pricing

Features

Target Audience

Ease of Use

Security and Compliance

Microsoft 365 E3

Higher cost (approx $36-40/user/month)

Includes all the features of Business Premium plus additional security and compliance features

Larger businesses with more complex needs and higher security requirements

May have a steeper learning curve due to the wide range of advanced features

Includes all the security and compliance features of Business Premium plus additional advanced features

Microsoft 365 Business Premium

Lower cost (approx. $28-32/user/month)

Comprehensive suite of productivity and collaboration tools with some security features

Small to medium-sized businesses with simpler needs

Easy to use and navigate with a simpler interface

Basic security and compliance features, including data protection and device management

Conclusion

This comparison guide presents Microsoft 365 Business Premium vs E3 as two of the most comprehensive and feature-rich suites of productivity and collaboration tools available today. Both provide features to streamline workflows, keep organized, and boost productivity; however, they differ in terms of feature count, target audience, and price point.

Which one is best? That depends on your business objectives and budget. If you are a smaller enterprise seeking an all-inclusive suite of tools at a budget-friendly price point, Microsoft 365 Business Premium could be ideal.

On the other hand, larger enterprises with more complex requirements, higher security demands, and seeking mobility security may find that Microsoft 365 E3 provides more value.

In conclusion, both Microsoft 365 Business Premium and E3 are excellent choices for businesses looking to enhance productivity and collaboration. If you're not sure which option is best suited for your company, consult with Amaxra for expert guidance and assistance in making an informed decision.

Reach out to Amaxra now to discover how we can assist you in getting the most out of Microsoft 365!

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