Business Premium vs Microsoft 365 E5
Business Premium already has strong security. E5 is a different tier again, with a price to match. The choice usually comes down to size and how much advanced security and compliance you truly need.
These are not neighbors on the ladder
Business Premium is the top of the small-business range. E5 is the top of the enterprise range. Between them sits E3. So jumping straight from Premium to E5 skips a step, and the price roughly doubles.
Business Premium already includes Defender for Business, Intune, and Entra ID P1. That covers most small companies well. E5 is for organizations that need the deepest security and compliance Microsoft sells, plus built-in phone calling.
What E5 adds over Business Premium
The extras in E5 are advanced, not cosmetic: Defender for Endpoint Plan 2 and Defender for Office 365 Plan 2 for advanced threat protection, the full Purview compliance suite for eDiscovery and data governance, Entra ID P2 with Identity Protection and Privileged Identity Management, Power BI Pro, and Teams Phone with the calling plan foundations.
It also removes the 300-user ceiling. Business Premium, like every Business plan, stops at 300 seats. E5 has no cap.
Side by side
| Business Premium | Microsoft 365 E5 | |
|---|---|---|
| User cap | 300 users | No cap |
| Desktop Office apps | Yes | Yes |
| Endpoint security | Defender for Business | Defender for Endpoint Plan 2 |
| Identity protection | Entra ID P1 | Entra ID P2 (risk-based, PIM) |
| Compliance and eDiscovery | Basic, add-on Suites available | Full Purview suite included |
| Analytics and voice | Not included | Power BI Pro and Teams Phone |
| List price (per user / month) | About $22 | About $57 |
List prices are estimates in USD on an annual commitment and change over time. Confirm current pricing with your Microsoft partner.
When Business Premium is the right call
You have up to 300 users and want good security without enterprise pricing. For most small and mid-sized businesses, Business Premium delivers the protection they will actually use. Paying for E5 and leaving its advanced tools unconfigured is money spent on a shelf.
When E5 earns its price
You are a larger or regulated organization: finance, healthcare, legal, or anyone facing serious compliance and eDiscovery demands. You want one advanced-security stack instead of buying add-ons piece by piece, and you may want to replace a phone system with Teams Phone. If you only need one or two of those pieces, compare E3 plus specific add-ons before committing to E5.
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Is E5 just Business Premium with more security?
It is more than that. E5 sits a full tier above Business Premium, adds Defender Plan 2, the full Purview compliance suite, Entra ID P2, Power BI Pro, and Teams Phone, and removes the 300-user cap. The price is roughly double.
Should I go from Business Premium straight to E5?
Often the middle step, E3, is worth a look first, especially if you are moving because you crossed 300 users rather than because you need advanced security. Jump to E5 when you genuinely need its compliance, advanced threat protection, or voice features.
How much more does E5 cost than Business Premium?
Business Premium lists at about $22 per user per month and E5 at about $57, so E5 is roughly two and a half times the price. Confirm current pricing with your Microsoft partner.
Can I add just the security parts of E5 to Business Premium?
Some capabilities are sold as add-ons, but Business plans and Enterprise plans are separate product families. Past 300 users you move to Enterprise anyway. For targeted needs, compare E3 with specific add-ons instead of the full E5 bundle.