Difference Between Microsoft E1 and Microsoft E3

For organizations, Microsoft Office 365 is the clear leader in cloud productivity suites, offering everything from Microsoft Office apps to cloud storage and email to instant messaging and video conferencing in one monthly subscription. Office 365 is available in two different tiers: E1 and E3.

Microsoft E1 vs Microsoft E3

The main difference between Microsoft E1 and Microsoft E3 is that Microsoft E1 provides basic email, file sharing, and storage while Microsoft E3 offers a complete set of business capabilities, including Microsoft Office (Word, Excel, PowerPoint, etc.) and additional security features.

Microsoft E1 vs Microsoft E3

The E1 package is the most basic of the two options. In addition to email and file storage and sharing with Microsoft Outlook, OneDrive also offers additional security features like multi-factor authentication, making it a good choice for small businesses.

Microsoft Office 365 E3 is the medium option for Office 365 subscribers, featuring all the functionality of E1 and the entire desktop suite of Office 365 programs as well as more storage for email and SharePoint. Office 365 E3 is neither too simple nor too advanced.

Comparison Table Between Microsoft E1 and Microsoft E3

Parameters of ComparisonMicrosoft E1Microsoft E3
Office 365Web-versionDesktop
Level of SecurityLowHigh
Suitable for1 user5 users

What is Microsoft E1?

Microsoft’s Office Suite (Word, PowerPoint, and Excel) is exclusively available over the web and on mobile devices in Microsoft E1. These programs’ web-based counterparts are inaccessible.

Outlook offers email with a mailbox size of 50GB. You can use the calendar, contacts, and email archiving features. However, you won’t be able to use Outlook on your desktop because the desktop client is not available. Instead, you’ll have to use the web-based email site.

Office 365’s fundamental email security, Exchange Online Protection, guards against unauthorized access to your messages. This will stop the most common types of spam, but it will not affect more sophisticated email attacks.

Teams, Microsoft’s instant messaging and meeting app, is included, as are live events. It does not include any audio or telephone system functionality.

Users can exchange and collaborate on files using SharePoint and Yammer, which are provided (again, this is only possible on mobile or in the web version of cloud office applications). Each user gets up to 1TB of storage space.

Power Automate, Planner, and To-Do are all included in version E1. Basic metrics like Productive Score and Compliance Management are also offered.

Single sign-on and two-factor authentication are both supported by Microsoft E1.

What is Microsoft E3?

Microsoft E3 lacks Defender for Office 365’s increased email security functionality as well as audio-conferencing. There are various third-party email security solutions available that are more robust than Defender (for a more cost-effective price).

The complete set of Microsoft cloud services is offered. The email comes with mailboxes up to 100GB in capacity and all of the features you’d expect. Phone system and audio-conferencing are excluded from Microsoft Teams.

Exchange Online Protection safeguards your email correspondence. Email and file data loss prevention (DLP) is also provided. Email encryption and retention regulations, as well as audit logs and audit trails, are all included as standard features.

SharePoint comes with an unlimited amount of OneDrive storage for each user. All three of these tools are included. It does not include Power BI Pro.

Analytical tools like Productive Score and compliance management are incorporated. Group policies that aren’t available in E1 can be managed by admins. Searching for content, eDiscovery, and basic auditing are all available. Advanced auditing and recordkeeping are not covered.

Single Sign-On and Multi-Factor Authentication are supported by Identity and Access Management.

If you’re working in a Citrix or Remote Desktop environment, this is a critical consideration. Shared PCs cannot be activated with E1. Citrix, Remote Desktop, and Shared Computers are popular in enterprises; however, they don’t work with E1. This means that if you’re using Citrix, a Remote Desktop environment, or kiosk machines, then Microsoft E3 is the way to go.

Main Differences Between Microsoft E1 and Microsoft E3

  1. The Office suite is not available in Microsoft E1 but is available in Microsoft E3.
  2. Advanced Microsoft office 365 email is not available in Microsoft E1 but is available in Microsoft E3.
  3. 50 GB Mailbox is available in Microsoft E1 whereas 100 GB Mailbox is available in Microsoft E3.
  4. 1 TB OneDrive storage is available in Microsoft E1 whereas unlimited OneDrive storage is available in E3.
  5. Microsoft E1 version is focused on the online version only whereas the Microsoft E3 version comes with a full license to install the desktop version of Word, Excel, Outlook, etc.
  6. Microsoft E1 includes less business services than Microsoft E3.


Word, OneNote, PowerPoint, and Excel documents can all be created and edited online using Microsoft Office. Planner lets you make new plans, organize tasks for your team, delegate work, share files, chat, and receive progress updates from your team.

Mobile, tablet and web-browser devices may all be used to generate enticing, exciting, and interactive web-based reports, presentations, and more. If you only need email and file sharing, Microsoft E1 is your best bet. Office 365 isn’t necessary. Ideal for a single user or a small group.

If you don’t want audio conferencing or advanced compliance features, Microsoft E3 is the finest all-around choice. Includes all of Microsoft Office 365, plus more email and file sharing storage. Third-party email security is typically more cost-effective than Microsoft E5 and should be used in conjunction with it.

The E3 license is one of the most common solutions for digital-driven businesses. With E3, you obtain desktop apps, You gain email, archiving, information protection, and more storage possibilities. You’ll also get Intune for device management and Azure Information Protection (plan 1) for data loss protection.

The best strategy for your firm will be determined by your specific business requirements and use cases. Using E3 in conjunction with third-party security is the best choice if you do not require a telephone system.


  1. https://link.springer.com/chapter/10.1007/978-1-4842-5875-0_1
  2. https://link.springer.com/chapter/10.1007/978-1-4842-3567-6_1
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