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Microsoft 365 (Office 365) · Productivity and Collaboration

Microsoft 365 E5

E3 + advanced security (Defender XDR) + compliance + analytics + Teams Phone.

Quick answer

Microsoft 365 E5 is the flagship plan of the M365 family. On top of E3 it adds Defender XDR (Endpoint P2, Office P2, Identity), Purview eDiscovery + Information Protection P2, Entra ID P2 (PIM, Identity Protection), Power BI Pro and Teams Phone Standard — at ~$57 per user/month.

M365 E5 is the all-in bundle for enterprises with mature security and compliance demands. Bought standalone, Defender XDR ($12) + Entra P2 ($9) + Purview ($10) + Teams Phone ($8) + Power BI Pro ($10) would total $49 — added to E3 ($36) that lands at $85. E5 prices at $57, delivering a 35%+ effective discount through the bundle.

Defender XDR: Microsoft's Extended Detection and Response platform — unifying Defender for Endpoint Plan 2, Defender for Office 365 Plan 2, Defender for Identity and Defender for Cloud Apps under a single console. It sits in the same competitive segment as Trend Vision One and CrowdStrike Falcon. The deep integration with Microsoft Entra ID, Microsoft 365 and Azure makes it especially powerful for organizations where the Microsoft surface dominates the IT estate. For non-Microsoft third-party ecosystems (Cisco, Palo Alto, Fortinet, AWS, GCP), Vision One or CrowdStrike are often more flexible.

Defender for Endpoint Plan 2 brings EDR with full attack-chain visibility, automated investigation and remediation (AIR), advanced hunting via the KQL Advanced Hunting console, threat and vulnerability management (TVM), and managed Microsoft Threat Experts service availability. Endpoints across Windows, macOS, Linux, iOS and Android are all in scope.

Defender for Office 365 Plan 2 upgrades email and collaboration security: Safe Links and Safe Attachments scan URLs and attachments at click-time / open-time; anti-phishing AI catches business email compromise (BEC) and impersonation; the Attack Simulator drives phishing-awareness training across the user base; Threat Explorer enables SOC search across the entire email graph; Automated Investigation and Response (AIR) closes incidents without manual analyst effort.

Defender for Identity protects Active Directory and Entra ID against credential theft, lateral movement and identity compromise. It detects pass-the-hash, pass-the-ticket, Kerberoasting and Golden Ticket attacks; suspicious authentication patterns trigger automated alerts.

Entra ID P2 adds Identity Protection (risk-based MFA, user risk scoring), Privileged Identity Management (PIM, just-in-time admin access, time-bound elevation), Access Reviews and entitlement management. For Zero Trust architectures, this is the identity backbone.

Purview: Microsoft's compliance and risk-management suite — eDiscovery (Premium), Records Management, Insider Risk Management, Communication Compliance, Information Protection P2 (advanced classifiers and trainable classifiers) and Data Lifecycle Management. For financial services under SEC 17a-4 / FINRA / MiFID II, for healthcare under HIPAA, and for legal practices under litigation hold, Purview is the platform that delivers compliance evidence.

Insider Risk Management watches for indicators of internal data exfiltration — anomalous file copying, USB transfer attempts, mass-download patterns, departure-window activity — and surfaces policy-based alerts. The control is calibrated for privacy (anonymized first, pseudonymized at the second tier, fully attributed only on escalation) so the program is balanced between security and employee privacy. Particularly valuable for IP-heavy industries (pharma, tech, defense, financial services).

Communication Compliance applies AI-driven supervision to email, Teams chat and other communication channels — flagging inappropriate language, harassment, confidential data sharing and regulatory violations. Required for SEC Rule 3110 supervision in US financial services, FCA SYSC 10 in UK financial services, and FINRA 3110 controls.

Teams Phone Standard is the cloud PBX (private branch exchange) license: auto-attendants, call queues, voicemail-to-email, call park, hold, transfer and call routing. PSTN connectivity is separate — either a Microsoft Calling Plan in supported markets, an Operator Connect partnership, or Direct Routing through a local SIP trunk. For multi-national EU/UK/US enterprises, Teams Phone Standard plus Direct Routing typically retires legacy on-prem PBX (Cisco UCM, Avaya Aura, Mitel) at significant cost savings.

Power BI Pro is the per-user Power BI license — standalone it runs $10/month. Bundled in E5, every employee gets self-service business intelligence at no incremental cost. For data-driven organizations this is direct measurable value. Power BI Premium (capacity-based, separate license) is required for very large dashboards or organization-wide read-only sharing without per-user Pro licensing.

Defender for Cloud Apps (a CASB — Cloud Access Security Broker) discovers shadow IT, monitors SaaS application use, enforces data-protection policies and detects anomalous user activity across third-party SaaS (Salesforce, ServiceNow, Workday, Box, Dropbox and 30,000+ catalog apps). For GDPR and CCPA, it is the lens onto sanctioned and unsanctioned SaaS data flows.

Sora Yazılım E5 deployment approach: we treat E5 as a platform, not a SKU. The engagement starts with a Zero Trust architecture review, mapping E5 capabilities to the customer's existing control objectives (ISO 27001, SOC 2, NIST CSF, GDPR Art. 32, HIPAA Security Rule). Defender XDR is rolled out in parallel with existing endpoint security to validate detection coverage before retiring incumbents. Purview eDiscovery is configured against the customer's records-retention schedule. Entra ID P2 PIM is deployed with role-based just-in-time elevation. Teams Phone Standard migrations from legacy PBX systems are executed with phased site cutovers. Power BI Pro adoption is paired with training. We deliver ongoing managed operations — monthly health reports, quarterly business reviews and ad-hoc incident response — through our security operations team. For US, UK and EU enterprises this is the path from licensed E5 to realized value E5.

E5 + Copilot economics: layering Microsoft 365 Copilot on top of E5 lands at ~$87/user/month. E5 is the maturity prerequisite for Copilot (Sensitivity Labels, SharePoint permission hygiene, DLP) — the two licenses are designed to compound. Many large enterprises adopting Copilot first land on E5, then add Copilot.

eDiscovery Premium walkthrough: legal teams in regulated industries face periodic litigation and regulatory investigation. eDiscovery Premium in E5 delivers the full discovery lifecycle: case creation, custodian identification, legal hold notification with custodian acknowledgement, content search across Exchange, SharePoint, OneDrive, Teams chats, Teams meeting recordings, Yammer/Viva Engage and third-party data sources connected through Data Connectors; review-set creation with deduplication, near-duplicate clustering, threading and predictive coding (Relevance) trained on the team's coding decisions; redaction with native redaction tools or third-party connectors; export to PDF, native or load file (DAT/OPT/CSV) formats compatible with Relativity, Reveal, Everlaw and other downstream review platforms. For organizations previously outsourcing eDiscovery to law-firm or service-provider platforms, bringing eDiscovery in-house through E5 typically saves 60–80% of project costs on routine matters.

Records Management deep dive: Purview Records Management enables the automatic application of retention labels to Microsoft 365 content based on metadata, sensitive information types, trainable classifiers or location. Records are marked immutable — even administrators cannot delete them before the retention period elapses. Critical for SEC 17a-4 (broker-dealer record retention), MiFID II (transaction record keeping), HIPAA (medical record retention), Sarbanes-Oxley (financial record retention) and various national archive laws. The retention schedule is co-designed with the customer's records-management lead and mapped to the records inventory.

Defender for Cloud Apps shadow-IT discovery: even disciplined enterprises see 30–50% shadow SaaS — employees signing up for Slack, Asana, Notion, Box, Dropbox, ChatGPT, Figma, Trello and 1,000+ other tools outside IT sanction. Defender for Cloud Apps ingests proxy logs, firewall logs and Defender for Endpoint device-level telemetry to discover every SaaS app touched by employees, scoring each on a 30-criterion risk index (data handling, compliance certifications, security incident history, data residency, GDPR Article 28 readiness). The CISO gains the lens to either sanction the high-value low-risk apps, deprecate the high-risk apps with policy enforcement, or negotiate enterprise contracts with the apps employees clearly want.

Privileged Identity Management (PIM) implementation: in any large M365 tenant, the number of standing administrators (always-on Global Admin, SharePoint Admin, Exchange Admin) is a critical security risk — a compromised admin account is catastrophic. PIM moves admin roles from always-on to just-in-time: an administrator who needs Global Admin elevation files a JIT activation request, optionally with ticket-system reference (ServiceNow integration), approval workflow (manager or peer approval), and a bounded time window (typically 1–8 hours). The standing administrative footprint drops to a small handful of break-glass accounts; the rest of the team activates on-demand. Microsoft's Secure Score for the tenant rises substantially after PIM rollout, and the customer's posture against insider-threat scenarios improves correspondingly.

Microsoft Purview Audit Premium: included in E5, Audit Premium increases default audit log retention from 90 days (Audit Standard) to 1 year (extendable to 10 years with additional licensing). Critical for breach investigations and regulatory audit requests where evidence is needed months or years after the event. Audit Premium also enables high-value events like MailItemsAccessed (which mailboxes were accessed during a suspected breach window — required by the Cybersecurity & Infrastructure Security Agency for federal incident response) and the high-bandwidth audit streaming through Office 365 Management Activity API to a SIEM (Microsoft Sentinel, Splunk, QRadar).

Communication Compliance configuration: out of the box, Communication Compliance includes pre-built policies for harassment, threat, profanity, regulatory compliance, sensitive information and code-of-conduct violations. The policies are tuned per organization — adjusting sensitivity to reduce false positives, defining reviewer groups (compliance, HR, legal) and integrating with disciplinary workflows. For US broker-dealers (FINRA Rule 3110, SEC Rule 17a-4), the policy set is calibrated specifically to the supervisory obligations. For US healthcare (HIPAA), the focus is PHI leakage detection. For EU financial services (MiFID II Article 16), the focus is investment recommendation supervision.

Teams Phone migration sequencing: large-enterprise PBX migrations from Cisco UCM, Avaya Aura or Mitel/Mitel Connect typically run 6–18 months across phased site cutovers. Sora Yazılım sequences the migration in waves: low-risk pilot sites first (small offices, secondary geographies); per-site cutover (parallel PBX/Teams running for 2–4 weeks per site, then PSTN cutover when confidence is established); contact-center migration last (carrying the most operational risk; integrated with omnichannel contact-center platforms like Five9, Genesys Cloud or NICE CXone if the customer already runs one). E.164 number ranges are ported in blocks; dial plans are normalized; emergency-services routing (E911 in US, BT 999 in UK, EU national emergency codes) is configured against dynamic location with Microsoft's Location Information Service.

Power BI Pro adoption at scale: Power BI Pro is included for every E5 user, but value is unlocked only when reports exist and people use them. Sora Yazılım runs a Power BI adoption program: Center of Excellence (CoE) setup (identifying internal Power BI champions, governance standards, certification process for published reports); semantic model design (creating reusable, governed datasets that report builders consume rather than each rebuilding from scratch); Power Query (M) and DAX training for analysts who will build reports; data-source integration (Microsoft Fabric, Azure SQL, Dataverse, Snowflake, SAP HANA and other enterprise sources via gateways); workspace governance (separating development, test and production workspaces with rigorous deployment pipelines).

Tenant security posture continuous improvement: Microsoft Secure Score and Compliance Manager run continuously in every M365 E5 tenant, scoring the tenant's posture against a CISO-grade rubric. Sora Yazılım uses these scores as the operational dashboard: monthly health checks compare current Secure Score against the target (typical mature E5 tenants land above 80%; the median tenant sits below 50%); each gap is converted into a remediation ticket prioritized by impact-vs-effort; the customer's quarterly business review tracks score trajectory across quarters. For tenants pursuing ISO 27001 certification or SOC 2 Type 2 attestation, this discipline directly produces evidence for the auditor.

Multi-tenant scenarios and Cross-Tenant Access Settings: large enterprises increasingly operate multiple M365 tenants — through acquisitions, regional sovereignty requirements (GovCloud, GDPR EU isolation), joint ventures or post-divestiture remnants. E5 includes Entra ID P2 and Cross-Tenant Access Settings (XTAS) that enable seamless B2B collaboration across tenants — Teams meetings federated, SharePoint sites cross-shared, identity provisioning automated through cross-tenant synchronization. Sora Yazılım designs the cross-tenant topology and the policy enforcement model (which counterparty tenants are trusted, what claims/factors are inherited, where MFA is re-required) for multi-tenant customers.

Why E5 over E3 + Security Add-Ons: a common procurement question is 'should we buy E3 plus the E5 Security and Compliance add-ons, or land directly on E5?'. The numerical answer: E5 is consistently more economical when at least three of {Teams Phone Standard, Power BI Pro, Defender for Cloud Apps} are required. The strategic answer: E5 is one license to manage, renew and assign — operational simplicity that compounds over the years of platform ownership. Sora Yazılım runs the TCO comparison against the customer's specific requirements and helps the procurement team build the business case.

Key features

What it offers

  • Defender XDR (Endpoint P2, Office P2, Identity)
  • Purview Information Protection P2 + eDiscovery
  • Entra ID P2 (Identity Protection, PIM)
  • Teams Phone Standard
  • Power BI Pro included
  • Defender for Cloud Apps (CASB)
  • Audio Conferencing included
  • Insider Risk Management
Tech Summary

Important technical data

User limit
Unlimited
Security
Defender XDR + Entra ID P2 + Defender for Cloud Apps
Compliance
Purview AIP P2, eDiscovery Premium
Telephony
Teams Phone Standard (cloud PBX)
BI
Power BI Pro
Price
~$57 per user/month (CSP)
Use Cases

When would you choose this product?

Banking

Bank SOC + compliance

A bank runs Defender XDR as the SOC platform on E5 — no Vision One or competing XDR required. Communication Compliance covers capital-markets supervision under regulatory rules.

Legal

Law firm eDiscovery

A law firm uses Purview eDiscovery to rapidly locate matter-relevant email and apply legal holds for active litigation.

Healthcare

Hospital Insider Risk

A hospital uses Insider Risk Management to monitor staff data-exfiltration scenarios — anomalous downloads of sensitive patient data trigger alerts under HIPAA boundary controls.

Multi-site enterprise

Corporate PBX modernization

An enterprise group retires its legacy PBX using Teams Phone Standard + Direct Routing — all calls now run through Teams across global sites.

Who is it for?

Large enterprises with mature security and compliance requirements.

Frequently Asked Questions

Frequently asked questions

Does the E5 price actually pay back?
Bought standalone, Defender XDR + Purview + Entra P2 + Teams Phone + Power BI Pro total ~$85. E5 lands at $57. For organizations that already use — or plan to use — these modules, E5 returns full value. The decision is whether the bundled components are on the strategic roadmap.
How does Defender XDR compare with Trend Vision One?
Defender XDR is deeply integrated into the Microsoft ecosystem and pulls excellent telemetry from Microsoft products. Third-party integration (Cisco, Palo Alto, Fortinet) is less rich than Vision One. For mixed-stack estates Vision One is typically more flexible.
What does Entra ID P2 add over P1?
Every P1 feature plus Identity Protection (risk-based MFA, user risk scoring) + Privileged Identity Management (PIM, just-in-time admin elevation) + Access Reviews + entitlement management. For Zero Trust architectures, this is the identity backbone.
Why is Power BI Pro inclusion valuable?
Standalone Power BI Pro runs $10/month. E5 bundles it for every user — direct measurable value for data-driven teams. Power BI Premium (capacity-based) remains a separate purchase.
What does Teams Phone Standard cover?
Cloud PBX + phone-number management + call queues + auto-attendant + voicemail. PSTN minutes are billed separately (Calling Plan) or come free over Direct Routing on a SIP trunk.
Is Audio Conferencing included?
Yes — guests can dial into Teams meetings by phone (PSTN). Critical for hybrid meetings where some participants are travelling or lack network connectivity.
Who needs Communication Compliance?
Regulated industries — financial services, legal, healthcare. It supervises employee communication (email, Teams chat) for regulatory compliance: inappropriate language, confidential-data leakage, harassment indicators.
Is Insider Risk Management overkill?
Internal threats (data theft, exfiltration around employee departures) are a real risk — especially in finance and IP-heavy industries. The program is policy-based with privacy guardrails (anonymized first, attributed only on escalation).
How does E5 differ from the E5 Security Add-On?
The E5 Security Add-On adds Defender XDR + Entra P2 + Defender for Cloud Apps on top of E3 ($12/month). E5 = E3 + Security Add-On + Compliance Add-On + Teams Phone + Power BI. The right pick depends on which modules you actually need.
How does Copilot combine with E5?
Copilot is licensed on top of E5 (+$30/month). The combination lands at ~$87/month — a full enterprise security stack plus AI productivity. Many large enterprises adopt this combination as their target architecture.
Vendor's official product page

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Microsoft 365 (Office 365)Microsoft 365 E5
Related Services

Services we deliver alongside this product

Microsoft 365 E5 licensing + deployment + support

Sora Yazılım handles licensing, deployment, training and ongoing management — all from a single team.