Microsoft 365 is the largest single software line for many organizations, and one of the most frequently over-specified. It is common to give everyone the same plan, often E3 or E5, regardless of what their work requires. Microsoft offers a range of plans precisely because needs differ: frontline plans for shift and mobile workers, E3 for most knowledge workers, and E5 for those who need advanced security, compliance, analytics and voice.
Plans at a glance
| Plan family | Designed for | Typical users |
|---|---|---|
| F1 / F3 (frontline) | Shift, mobile and shared-device workers | Retail, field service, manufacturing floor |
| E3 | Knowledge workers | Most office staff |
| E5 | Advanced security, compliance, analytics, voice | Security-sensitive roles, power users |
| Add-ons | Specific capabilities | Users needing one premium feature |
Feature sets and prices change over time; check Microsoft's current plan comparisons before deciding.
Where the money is
Microsoft 365 savings usually come from four places, in roughly this order of size:
Users on E5 or E3 whose work fits a lower plan.
Assigned seats nobody uses.
Separate products for capabilities already in your plan: conferencing, file sharing, security, analytics.
Premium add-ons, including AI, assigned broadly before value is measured.
A persona-based plan mix
Five optimization steps
- Build personas
From roles and actual usage. See right-sizing licenses.
- Move frontline workers
To F-series plans where their work fits.
- Justify E5 per user
Or use add-ons for the one or two premium features some users need.
- Remove overlapping tools
Products that duplicate capabilities you already pay for in your plan.
- Reclaim inactive licenses quarterly
See license reclamation.
Overlapping tools
E-plans include capabilities many organizations also buy separately. Each overlap is either a saving or a reason the higher plan is justified.
Watch the AI add-on
Microsoft 365 Copilot is licensed as an add-on on top of qualifying plans, at a list price of $30 per user per month on an annual commitment. Rolling it out broadly before measuring value can add significant cost. See Copilot licensing.
Time changes to the agreement
Plan changes usually take effect at renewal or anniversary. Microsoft has also been moving many customers from Enterprise Agreements to MCA-E or CSP, which changes how and when you can adjust. See Microsoft EA renewal.
Microsoft 365 quarterly review
How MI One helps
Frequently asked questions
Is E5 worth it?
For users who need its advanced security, compliance, analytics or voice features, often yes, especially if it replaces separate tools. For others, E3 or a frontline plan may be enough.
Can we mix plans in one tenant?
Yes. Most organizations should.
Should security features drive the plan choice?
Often. If advanced security is needed for everyone, compare buying it as an add-on for all users with moving everyone to E5.
Sources
- Microsoft, Microsoft 365 Copilot for enterprise. https://www.microsoft.com/en-us/microsoft-365/copilot/enterprise