Microsoft Explained
Microsoft 365 Business Premium vs E3: which is right for you?
These two plans get confused constantly — and picking the wrong one means overpaying or missing out on security. Here’s the plain-English difference.
Greater Manchester & UK-wide · free, no-obligation advice
Why Foresight
- Cyber Essentials Plus certified
- Supporting 130+ organisations since 2006
- We reply within one working hour
- Plain-English, no jargon
Quick answer
Microsoft 365 Business Premium is the best-value plan for most small and mid-sized businesses (up to 300 users): it bundles the Office apps, email and Teams with advanced security — Microsoft Defender for Business, Intune device management and Entra ID P1. Microsoft 365 E3 is an enterprise plan with no user cap and extra compliance and management features, but its advanced security often costs extra on top. For most organisations under 300 users, Business Premium gives more security for less; E3 suits larger organisations or those with specific enterprise or compliance needs.
Side by side
The key differences
| Business Premium | Enterprise E3 | |
|---|---|---|
| User limit | Up to 300 users | No limit |
| Office apps, email, Teams | Yes | Yes |
| Advanced security included | Yes — Defender for Business, Intune, Entra ID P1 | Core only; advanced security often costs extra |
| Enterprise compliance/management | Limited | More extensive |
| Best for | SMEs up to 300 users wanting security built in | Larger orgs or specific enterprise/compliance needs |
| Cost per user | Lower | Higher |
How to choose
A simple rule
If you have fewer than 300 users and want strong security built in without bolting on extras, Business Premium is almost always the right answer — it’s the SME sweet spot. Choose E3 if you’re over 300 users, or you need specific enterprise compliance, data-governance or management features. Many businesses on E3 are actually paying more for less security than Business Premium gives.
Licensing is fiddly and prices change, so it pays to get it right. We’re a Microsoft Cloud Solution Provider — see Microsoft 365 licensing, or we’ll review your current licences and make sure you’re on the right plan (and not overpaying). It also pays to harden whichever you choose with security baselines.
FAQs
Common questions
What’s the main difference between Business Premium and E3?
Which is cheaper, Business Premium or E3?
Can I use Business Premium with more than 300 users?
Do I need E3 for better security?
How do I know which plan I’m on — or should be on?
On the right Microsoft plan?
We’ll review your licences and make sure you’re secure and not overpaying. Talk to us about Microsoft 365.