Key takeaways
- E3 is the standard enterprise plan, E5 adds advanced security, compliance and analytics, and E7 adds AI and agent governance on top of E5.
- Microsoft describes E7 as E5 plus Microsoft 365 Copilot, Microsoft Entra Suite and Agent 365.
- Most organizations should mix plans by user role, instead of giving everyone the highest plan.
Microsoft 365 E3, E5 and E7 are the main enterprise plans. They differ in security, compliance and AI, and the right choice depends on the risk and the work of each group of users. Microsoft 365 E7 became generally available on 1 May 2026.
Microsoft 365 E3
E3 covers the core needs of most office users: Microsoft 365 apps, email, file storage, device management and baseline security and compliance. It suits organizations with standard security needs, or those that add security from other vendors.
Microsoft 365 E5
E5 includes everything in E3 and adds Microsoft Entra ID P2, the wider Microsoft Defender suite, advanced Purview compliance features and Power BI Pro. It suits regulated organizations and users who handle sensitive data.
Microsoft 365 E7
E7 is the top tier. It contains everything in E5, plus Microsoft 365 Copilot, Microsoft Entra Suite and Agent 365, which is used to govern and secure AI agents. It suits organizations that have decided to roll out Copilot and agents widely.
How to choose
- List your user groups: office staff, finance, management, IT and frontline workers.
- Match each group to its security and compliance needs.
- Check which security tools you already pay for, to avoid paying twice.
- Pilot Copilot with a small group before buying it for everyone.
- Use F plans for frontline staff, and E1 where desktop apps are not needed.
Mixing plans is normal
Few organizations need one plan for everyone. A common approach is E3 for most staff, E5 for sensitive roles, and Copilot only where it pays for itself. Microsoft changes plans and prices over time, so confirm the current details before you order.
How Thoughts House can help
We supply Microsoft 365 and Dynamics 365 licenses in Saudi Arabia, including a mixed enterprise license project of more than 300 Microsoft 365 licenses for a technology company. Tell us your user groups and we will propose the right mix.
Frequently asked questions
What is the difference between Microsoft 365 E3 and E5?
E5 includes everything in E3 and adds stronger security, compliance and analytics, including Microsoft Entra ID P2, the wider Defender suite and advanced Purview capabilities.
Does Microsoft 365 E7 include Copilot?
Yes. Microsoft 365 E7 includes Microsoft 365 Copilot, along with Microsoft Entra Suite and Agent 365. With E3 and E5, Copilot is licensed as an add-on.
Can we mix E3 and E5 licenses?
Yes. Many organizations assign E5 to users with higher risk or compliance needs and E3 to others. Check the licensing terms for any features that require all users to be licensed.