Microsoft 365 Business Premium vs E5: Which is Right for Your Business?
Both plans include advanced security, compliance, and productivity tools — but they target very different business sizes and requirements. This guide breaks down every key difference to help you choose.
Key Facts
Feature-by-Feature Comparison
Key capabilities across security, compliance, productivity, and identity — compared side by side.
| Feature | Business PremiumFrom £16.60/user/moRecommended | E3From £24.40/user/mo | E5From £37.50/user/mo |
|---|---|---|---|
| Microsoft 365 Apps (desktop) | |||
| Exchange Online (50GB mailbox) | |||
| SharePoint & OneDrive (1TB) | |||
| Teams Phone System | Add-on | ||
| Microsoft Entra ID P1 | |||
| Microsoft Entra ID P2 | |||
| Conditional Access | |||
| Microsoft Defender for Business | |||
| Microsoft Defender for Endpoint P2 | Add-on | ||
| Microsoft Defender for Office 365 P2 | |||
| Microsoft Defender for Cloud Apps | |||
| Microsoft Sentinel (SIEM) | Add-on | ||
| Microsoft Purview DLP | |||
| Microsoft Purview eDiscovery Premium | |||
| Intune (MDM/MAM) | |||
| Max users per tenant | 300 | Unlimited | Unlimited |
| Privileged Identity Management | |||
| Power BI Pro |
Prices correct as of March 2026 (annual commitment). AMVIA customers receive preferential Microsoft CSP pricing. Add-on pricing available on request.
When to Choose Each Plan
The right licence depends on your headcount, security requirements, and compliance obligations.
Choose Business Premium if...
You have under 300 users, need strong endpoint security and Conditional Access, and don't require advanced SIEM, eDiscovery, or Teams Phone. The best-value plan for most UK SMEs.
Choose E3 if...
You have over 300 users, need enterprise compliance features (eDiscovery, audit logs, legal hold), or require enterprise-grade identity management. Security must be added via add-ons.
Choose E5 if...
You operate in a regulated industry, need a built-in SIEM (Sentinel), require Teams Phone, demand maximum identity protection (Entra P2 + PIM), or need Defender XDR across email, endpoint, and cloud apps.
Cost-Benefit Summary
For a 50-user business, Business Premium costs approximately £9,960/year. Adding equivalent E5 security capabilities through individual E3 add-ons would exceed £18,000/year. Business Premium delivers the better security ROI for sub-300 user businesses — and AMVIA's managed M365 service is included at no additional cost on our IT support plans.
See full M365 pricing guideThe AMVIA Recommendation
The AMVIA Recommendation
For UK SMEs under 300 users, M365 Business Premium is the right licence tier. It includes Defender for Business (EDR-level endpoint protection), Intune (device management), Azure AD P1 (Conditional Access), and Defender for Office 365 — an integrated security stack at approximately £18 per user per month. AMVIA can audit your current licences and ensure you are getting full value.
Get a Free M365 Licence ReviewFrequently Asked Questions
The average cost of the most disruptive breach is £3,550 for UK businesses. For businesses that experienced negative outcomes such as data loss or financial theft, the average cost rises to £8,260. Medium and large businesses face average costs of £10,830 per disruptive incident.
Start by enabling MFA for all accounts, disabling legacy authentication protocols, and configuring DMARC/DKIM/SPF for email. Review conditional access policies — many are left in report-only mode providing no enforcement. Consider upgrading to Business Premium for advanced security features.
43% of UK businesses experienced a cybersecurity breach or attack in the past 12 months, according to the DSIT Cyber Security Breaches Survey 2025. For medium-sized businesses, this figure rises to 67%. Phishing remains the most common attack type, affecting 85% of businesses that reported a breach.
Microsoft Secure Score measures your organisation's security posture within Microsoft 365. It provides recommendations ranked by impact and effort. Improving your Secure Score helps protect against the 1,360 vulnerabilities Microsoft patched in 2024 — an 11% increase from the previous record.
Get Expert M365 Licence Advice
AMVIA's Microsoft-certified engineers will review your current licences, identify over-provisioning or gaps, and recommend the most cost-effective configuration for your business.
Related Resources
How Much Does Managed Cybersecurity Cost?
UK pricing guide for managed cybersecurity services
M365 Business Premium vs Standard
Security differences between M365 tiers
Microsoft 365 Security Audit
Get your M365 tenant security assessed
How to Set Up MFA in Microsoft 365
Step-by-step MFA setup guide