Difference Between Microsoft 365 Business Standard and E3

Edited by Diffzy | Updated on: April 30, 2023


Difference Between Microsoft 365 Business Standard and E3

Why read @ Diffzy

Our articles are well-researched

We make unbiased comparisons

Our content is free to access

We are a one-stop platform for finding differences and comparisons

We compare similar terms in both tabular forms as well as in points


All organizations need to be more productive, operate more effectively, and secure their data. Previously, smaller businesses were compelled to pay for Enterprise memberships that included capabilities they would ignore or do without. With Microsoft 365 Business, this isn't the case anymore because each business now has a unique value package. For example, a Business Premium subscription costs about 40% less than an E3 license despite having almost identical functionality. In addition, it's beneficial to know that you can purchase 300 Microsoft 365 Business Standard licenses before moving on to Office 365 E3. Therefore, you are not limited to a maximum of 300 people inside your tenancy due to the seat restriction.

If Business Standard is sufficient for your company, you can begin with the 300 Business Standard plans before granting E3 licenses to the remaining customers. Thanks to this simple advice, you now save €2.250 per month. Microsoft Corporation is in charge of creating hardware and software for its clients. The two founders of this well-known American company are Bill Gates and Paul Allen. Microsoft 365 Business Standard and E3 are two of the company's premium subscriptions, including security, databases, and other useful tools for small and large businesses. When comparing Microsoft 365 Business Standard vs. Office 365 E3. Discover that both subscriptions come with Office software for up to 5 PCs, an Exchange mailbox, OneDrive for Business, Microsoft Teams, and Microsoft 365 SharePoint Online. However, the Office 365 E3 plan costs an extra $7.50 per user per month.

Microsoft sells license options for its collection of productivity services known as Microsoft 365. Choosing the ideal plan for a business may sometimes be challenging. Careful consideration is required while deciding between Microsoft 365 E3 and Microsoft 365 Business Premium. With the help of this comparison, you can decide which license is ideal for your company by learning more about Microsoft 365 Business and E3 plans. Thanks to a clear separation between packages, smaller firms no longer need to pay pricey enterprise-tier subscriptions. Additionally, businesses are increasingly preferring their subscription model to the single-user license of the past.

Microsoft 365 Business Standard Vs. Microsoft 365 E3

Small and midsize enterprises are the primary target market for Microsoft 365 Business Premium. On the other hand, Microsoft 365 E3 provides services to bigger businesses. Both provide a mix of Windows 10 security, Office 365 security, and Microsoft's productivity capabilities. The specifics of the Business and E3 plans differ, although they appear comparable at first glance.

The business apps are where Microsoft 365 Business Standard and Office 365 E3 diverge the most. Smaller businesses are more of a priority for Business Standard. Therefore, it includes business software like Microsoft Invoicing and Bookings.

However, as seen by the OneDrive and Exchange Online mailbox storage, E3 is mainly geared toward large businesses. Additionally, the corporate subscriptions are the only ones that feature a few really helpful compliance tools. Microsoft 365 Business Standard is a software program that requires a subscription. It also includes a package of the well-known software item (Microsoft Office products). The Microsoft 365 standard plan, formerly known as office 365, was first released in 2010. Microsoft 365 Business Premium was the previous moniker for the Microsoft 365 Business Standard. Large-scale collaborative software solution Microsoft 365 E3 is a subscription-based service. Large enterprises may connect securely to the cloud thanks to it. Additionally, it enables users to access the software via various electronic devices. Additionally, it offers office programs for desktop and mobile devices that cover all of E1's services.

Difference Between Microsoft 365 Business Standard and Microsoft 365 E3 in Tabular Form

Parameters Of Comparison Microsoft 365 Business Standard Microsoft 365 E3
Objective The software suite Microsoft 365 Business Standard is intended for smaller businesses. Software bundle Microsoft 365 E3 is designed for bigger businesses.
Memory Available Each user has 1TB of cloud storage available through Microsoft 365 Business. Users' cloud memory under Microsoft 365 E3 might be extended to 5TB.
Email Archiving


Storage space in Microsoft 365 Business Standard is up to 50 GB. With the Microsoft 365 E3 package, storage is limitless
Plans for Subscription Plans for Microsoft 365 Business Standard subscriptions are available monthly and annually. There is an annual membership option for Microsoft 365 E3.
Security Options Microsoft 365 Business Standard's security features include Azure Identity Protection and mobile device management. The Microsoft E3 security features are cutting-edge.
Analytics No Yes
Information Security Yes Yes
Operating System Windows 10 Business Windows 10 Enterprise

What Is Microsoft 365 Business Standard?

For businesses aiming to enhance their office productivity, business operations, communications, collaboration, and more, Microsoft 365 Business Standard offers a more robust package. Users get access to all the features of Business Basic and desktop Office applications like Yammer, 1 TB of OneDrive storage, and restricted usage privileges for Power Apps and Power Automate. Most businesses find this choice to be suitable due to its mid-range price. Both a desktop and a cloud version of Microsoft Office (Outbox, Word, Excel, and PowerPoint) are included in the basic package. In addition, all of the Microsoft 365 Business Basic applications are included in Microsoft 365 Business Standard, along with Microsoft Booking and MileIQ (supported in a few nations.)The company's customers can make reservations thanks to this extra application, Microsoft Booking. With regards to MileIQ, it is a program that monitors the company car.

One may monitor their drivers and distribute the necessary transportation resources with this tracker. This subscription bundle also includes a self-service password reset (SSPR) required to access cloud services. By lowering the burden on the help desk, this feature helps the business as a whole. It also helps end users by enabling them to unlock their software without needing support from a third party. Data loss prevention is one of the add-on services available under Microsoft 365 Business Standard for protecting all customer and business data. Numerous operating systems, including Windows 8.1, 10, 11, and every Mac version, are compatible with it.

Features Of Microsoft 365 Business Standard

  • Security:  M365's security capabilities and features combine the greatest aspects of Windows 10, Enterprise Mobility and Security, and Office 365.
  • Value: You may save money on license fees by using Microsoft 365. If you currently pay for Office 365, you can upgrade to obtain access to Windows 10's corporate capabilities and a fantastic collection of security and mobility solutions within the Enterprise Mobility Suite for significant savings over purchasing each item separately.
  • End of Support: If you're still using Windows 7, extended support will end in 2020, after which you won't get any security updates or patches. As a result, you are vulnerable to online dangers. You may be thinking about switching to Windows 10 if you are still using Windows 7 (which is utilized by 45% of enterprises). It comes with Microsoft 365, providing you access to many more priceless security and collaboration tools and greater pricing.
  • Scalability Boundaries: You can have scaling problems with the Microsoft 365 Business Standard plan. If you presently have more than 300 users or anticipate adding more shortly, you must forgo the M365 Business Standard choices and opt for an Enterprise License.
  • Security Evaluation: You should also consider security risks to your company. To be clear, with one exception, security, the Microsoft 365 Organization Standard subscription is a wonderful value for all the features you get for a small business. However, it's important to have a complete strategy for your devices, networks, and SaaS apps when protecting cloud services like Microsoft Office 365 and Azure.

What is Microsoft 365 E3?

The alluring package Microsoft 365 E3 offers large enterprises greater compliance requirements, more security capabilities, and more IT customizations. Additionally, subscribers of Business Premium receive 1TB of OneDrive cloud storage, compared to E3 customers with unlimited storage. When deciding whether your business needs Microsoft 365 E3, there are a few apparent factors to take into account. Office 365 E3 license is prepared to safeguard your environment from daily risks, in contrast to the Business Standard license. Above all, Office 365 E3 offers information security features, including message encryption, rights administration, and data loss prevention for files and emails. Additionally, you will have access to roaming options and group policy help.

Microsoft Office software can be installed on a maximum of five PCs, five mobile devices, five tablets, or five Mac machines per user under a single plan. All of the users' information is protected by security technologies such as message encryption, effective administration, and data loss prevention (intelligent security to protect data). Additionally, it offers all end users the ability to self-service password reset (SSPR). So that clients won't be bothered if they occasionally forget their passwords. Microsoft 365 E3 offers health-related capabilities to help customers with health-related issues and VOIP services for calling, in addition to the Microsoft Intune apps. The issue with the Microsoft 365 E3 subscription plan is that there is no monthly fee. It has an annual membership fee that is higher than that of other Microsoft products.

Examine the following standards to evaluate if the company meets them:

  • In excess of 300 users per SKU
  • IT and administrative controls are necessary.
  • Business intelligence and analytics software
  • Enhanced security measures
  • More need for cloud storage

For corporate customers, Office 365 E3 is the most cost-effective method to access the premium versions of Office applications and services. You have complete access to Applications offered by Office 365 E3

Since these are the desktop versions of the applications, you get access to all of the premium features and complete offline functionality on all of your devices. Office 365 E3 makes it simple to maintain productivity because each user may install it on up to five PCs, tablets, and smartphones. This is the primary appeal of Office 365 E3, so let's halt right there. You receive both desktop and cloud-based services, so you don't have to pick one over the other.

Microsoft also offers five levels of protection, tools for compliance, and data loss prevention. A few of the standout functions included with Office 365 E3 subscriptions: Send attachments up to 150 MB; business-class email; 100 GB Outlook mailbox per user.

Features Of Microsoft 365 E3

  • OneDrive storage is unrestricted; subscriptions with more than five users begin with 5 TB and may add more. For subscriptions with four users or fewer, each user receives 1 TB.
  • Safe and secure collaboration: Your main office apps are completely connected with Yammer, Teams, and SharePoint. Whatever communication channel you prefer, you may save, share, and collaborate on editing files throughout the company. Files can also be shared with others outside of the company, with guest access managed as necessary.
  • Services for rights management: With Azure Rights Management, you can handle confidential documents, emails, and data.
  • Automation: By creating processes that save time and automate repetitive operations with Flow and PowerApps, you can increase productivity.

Main Difference Between Microsoft 365 Business Standard and Microsoft 365 E3 in Points

  • At a single subscription level, Microsoft 365 Business Standard only allows for 300 licenses per company. However, Microsoft 365 E3 enables the purchase of an infinite number of licenses per company.
  • Per user, Microsoft 365 Business Standard offers 1 TB of cloud storage. However, each user has access to 5 TB of cloud storage with the Microsoft 365 E3 subscription.
  • Emails and calendar events can be stored in Microsoft 365 Business Standard for up to 50 GB. In contrast, Microsoft 365 E3 offers limitless calendar and email storage.
  • There are several subscription plans available with Microsoft 365 Business Standard (monthly and yearly). On the other hand, the membership for Microsoft 365 E3 is bought for at least a year.
  • The voice-over IP services that Microsoft 365 E3 offers for business purposes are not available to subscribers of Microsoft 365 Business Standard.
  • The premium version of Microsoft 365 Business is reasonably priced. In actuality, each user pays $20 each month. There is also a simple Business license available for $12.50 per user per month. However, it does not include all security measures. Organizations must pay $32 per person each month, across an unlimited number of users, for Microsoft 365 E3. A Microsoft 365 E3 subscription is also offered, which boosts the number of admin, IT, security, and cloud technologies accessible for $57.00 per user per month.
  • As you can see, with a few exceptions, Microsoft 365 Business Premium and Microsoft 365 E3 have a lot in common. The primary distinctions between the plans are security, OneDrive accessibility, and on-premises restrictions and privileges.
  • Customers of Microsoft 365 Business are protected by Advanced Threat Protection (ATP), a component of the Microsoft Defender security program. Even though ATP is an extremely strong security solution, big organizations with significant security requirements could need something more. The biggest distinction between Microsoft 365 Business Premium and Microsoft 365 E3, aside from the number of seats, is security, and here is where Microsoft 365 E3 excels.


While the two layouts might initially appear to be similar, a brief scratch under the surface reveals some clear variances. Microsoft 365 Business Premium is likely to meet your needs if your small business employs less than 300 workers. Microsoft 365 E3 is the ideal option for larger companies that have higher security and storage requirements. Both Microsoft 365 Business Standard and Microsoft 365 E3 provide different businesses with high-level Microsoft services. Both are paid Microsoft partnership subscriptions. Compared to Microsoft 365 E3, Business Standard provides less space for storing emails and significant events. Additionally, Microsoft 365 Business Standard comes with a standard 1 TB of cloud storage, which is less than what Microsoft 365 E3 offers.


  • https://suiteguides.com/microsoft-365-business-vs-e3/

Cite this article

Use the citation below to add this article to your bibliography:



MLA Style Citation

"Difference Between Microsoft 365 Business Standard and E3." Diffzy.com, 2023. Sun. 04 Jun. 2023. <https://www.diffzy.com/article/difference-between-microsoft-365-business-standard-and-988>.

Edited by

Share this article