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Business Premium vs Microsoft 365 E3: Which Plan Is Right for Your Business?

Bernie Eller

Bernie Eller

Director — Marketing & Sales

10 June 20245 min read3 sections
Business Premium vs Microsoft 365 E3: Which Plan Is Right for Your Business?

Business Premium (up to 300 users) and E3 (unlimited users) serve different needs. Here's a clear comparison — including which has better security features for most NZ businesses.

Key takeaways

  • 1Microsoft Defender for Business — E3 doesn't include Defender for Business. To get EDR in E3, you need to add Defender for Endpoint P1 or P2 at additional cost.
  • 2Microsoft Intune (full MDM) — E3 includes Intune only in some configurations; it's not guaranteed without careful licence checking.
  • 3Microsoft Defender for Office 365 P1 — included in Business Premium, requires add-on with E3 base.

The most common licencing question from growing businesses approaching the 300-user limit is whether to stay on Business Premium or move to Microsoft 365 E3. The answer is often counterintuitive: for most businesses, Business Premium is the better security choice — even though E3 is more expensive.

What Business Premium has that E3 doesn't

  • Microsoft Defender for Business — E3 doesn't include Defender for Business. To get EDR in E3, you need to add Defender for Endpoint P1 or P2 at additional cost.
  • Microsoft Intune (full MDM) — E3 includes Intune only in some configurations; it's not guaranteed without careful licence checking.
  • Microsoft Defender for Office 365 P1 — included in Business Premium, requires add-on with E3 base.

What E3 has that Business Premium doesn't

  • No 300-user limit (Business Premium is capped at 300 users)
  • Windows 10/11 Enterprise edition rights
  • Advanced eDiscovery and compliance features
  • Microsoft Teams Audio Conferencing

The recommendation for most businesses

For businesses under 300 users, Business Premium is the right choice — the security stack is more complete and it costs less. For businesses over 300 users needing to move to E3, the correct approach is: E3 as the base licence + Defender for Endpoint P1 or P2 + Microsoft Defender for Office 365 P2 as add-ons. This is more expensive but restores the security equivalence. Optimyze advises on licencing transitions as part of the vCIO engagement.

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