CIO Playbook: Maximizing Security & Compliance with Microsoft 365 E5 Add-ons
Introduction
In today’s threat landscape, CIOs must balance robust security and compliance with cost-effectiveness. Microsoft offers premium Microsoft 365 E5 add-ons that enhance security and data governance without requiring a full E5 license for every user.
As a Microsoft licensing expert, I have advised many organizations on leveraging these add-ons to protect their assets, meet regulations, and control spending. This playbook provides a comprehensive guide to Microsoft’s security and compliance add-ons – specifically Microsoft 365 E5 Security, Enterprise Mobility + Security (EMS) E5, and Microsoft Purview (compliance) – and offers actionable strategies for CIOs.
We’ll break down how these add-ons are licensed, what components they include, and how to deploy them strategically. You’ll find guidance on assigning advanced security/compliance tools to the right user roles (e.g. executives, IT admins, legal, HR, frontline staff) and evaluating the ROI of Microsoft’s premium features versus baseline capabilities or third-party solutions.
We’ll also cover best practices for consolidating point solutions into Microsoft’s integrated stack (identity, endpoint, data protection, compliance), and finish with key CIO recommendations for an optimal licensing strategy.
Microsoft 365 E5 Security Add-on (Advanced Security Suite)
Microsoft 365 E5 Security is a per-user add-on license that provides a bundle of Microsoft’s top-tier security tools, designed to be layered on top of Microsoft 365 E3 or similar plans. It delivers the advanced threat protection and identity security features of a full E5 plan, without forcing you to pay for unrelated extras like voice or analytics.
This add-on is ideal for organizations that want to enhance security across identities, endpoints, email, and cloud apps – achieving a “defense in depth” aligned to Zero Trust – while keeping their existing M365 E3 foundation.
How It’s Licensed: The E5 Security add-on is purchased per user per month and can be assigned to any user with the requisite base license (such as M365 E3 or Office 365 E3). It effectively “upgrades” that user’s security capabilities to the E5 level.
You don’t have to buy it for all users in the tenant – it can be applied to selected accounts (we’ll discuss allocation strategies later). It’s priced significantly lower than a full E5 license, since it excludes non-security components (for example, telephony and Power BI). Many organizations find this a cost-effective step-up to advanced security, especially if they don’t need the full E5 suite for everyone.
What’s Included: Microsoft 365 E5 Security includes a comprehensive set of security solutions:
- Microsoft Entra ID Premium P2 (formerly Azure AD Premium P2) – Advanced identity and access management. This brings capabilities like risk-based conditional access, Azure AD Identity Protection, and Privileged Identity Management (PIM) for just-in-time admin access. P2 helps secure user authentication and administrative roles with greater control and monitoring.
- Microsoft Defender for Endpoint (Plan 2) – Endpoint detection and response (EDR) for Windows and other devices. This advanced endpoint security tool goes beyond basic antivirus, providing behavior-based threat detection, automated investigation and remediation, and threat and vulnerability management on workstations and servers. (Note: Plan 2 is the full E5-level version; E3 users only have Plan 1 with more limited capabilities.)
- Microsoft Defender for Office 365 (Plan 2) – Advanced email and collaboration protection. This enhances Exchange Online Protection with features such as Safe Links and Safe Attachments (to detect malicious URLs and attachments), phishing and malware AI detection, attack simulation training, and Threat Explorer for hunting threats across email, Teams, SharePoint, and more. It greatly improves protection against phishing, business email compromise, and sophisticated attacks beyond the standard E3 defenses.
- Microsoft Defender for Identity – Cloud-based threat analytics for on-premises Active Directory identities (formerly Azure Advanced Threat Protection). It monitors domain controllers to detect identity-related attacks, such as pass-the-ticket, lateral movement, and domain compromise, and alerts you to suspicious activities in your AD environment. This helps protect the hybrid identity infrastructure.
- Microsoft Defender for Cloud Apps – A Cloud Access Security Broker (CASB), formerly known as Microsoft Cloud App Security. It provides visibility and control over cloud service usage. With this, you can detect shadow IT (unsanctioned app use), apply conditional access to cloud apps, and protect sensitive information across third-party cloud services, such as detecting data exfiltration to personal cloud drives.
These four Defender components work together as an extended detection and response (XDR) suite, sharing signals to correlate threats across email, endpoints, identities, and cloud applications. The E5 Security package essentially activates all “Defender” tools at the highest tier for each licensed user.
By keeping these security tools within Microsoft’s ecosystem, organizations benefit from tight integration and a unified security center. In practice, E5 Security enables a holistic Zero Trust approach: strong identity governance via Entra ID P2, proactive threat protection for devices and email, and oversight of cloud app usage – all managed through a single vendor.
What’s Not Included: The E5 Security add-on focuses purely on security. It does not include Microsoft’s compliance solutions, such as advanced eDiscovery, data governance, or Insider Risk Management – these are part of a separate E5 Compliance/Purview add-on, discussed later. It also doesn’t include features outside security, such as Teams Phone System or Power BI Pro.
The idea is to let you enhance security without paying for those other E5 components your users might not need. Additionally, note that Intune (mobile device and application management) is not bundled in E5 Security because Intune is considered part of the EMS (Enterprise Mobility + Security) suite or M365 core.
In an M365 E3 subscription, you already have Intune via EMS E3; if you’re coming from an Office 365 E3 license without EMS, you may need at least an EMS E3 or a separate Intune license for device management. Keep in mind that some security features, such as device compliance or conditional access, rely on Intune and Azure AD P2 working together.
Enterprise Mobility + Security (EMS) E5
Enterprise Mobility + Security E5 is another per-user licensing bundle, focused on advanced identity, device, and information protection capabilities. Think of EMS E5 as the security and mobility half of Microsoft 365 E5.
It includes the top-tier features of the EMS suite, which complement Office 365. Organizations often use EMS E5 to strengthen identity security and protect information across devices, especially if they aren’t ready to jump to full Microsoft 365 E5.
How It’s Licensed: EMS E5 can be purchased as a standalone subscription per user. It’s often used in combination with Office 365 E3 or Microsoft 365 E3 licenses. Microsoft 365 E3 already includes EMS E3 (the lower tier), so EMS E5 is essentially a step-up to the higher tier of EMS for those users. You can assign EMS E5 licenses to select users just like other add-ons.
One important point: EMS E5 is separate from the Microsoft 365 E5 Security add-on – they have overlapping goals, but different content. In many cases, EMS E5 is a more cost-effective way to provide certain users with key security features, especially if you primarily need advanced identity and data protection without full Defender for Endpoint coverage.
EMS E5 is typically a bit cheaper per user than the E5 Security add-on because it doesn’t include some of the more expensive endpoint and email protections – it’s focused on identity and data security.
What’s Included: EMS E5 includes all the components of EMS E3 (which are Azure AD Premium P1, Microsoft Intune, and Azure Information Protection P1) and adds the following advanced capabilities on top:
- Azure AD Premium P2 – This is part of Entra ID and is the same P2 plan mentioned earlier. So EMS E5 gives you the full set of Azure AD identity security features: Privileged Identity Management, Identity Protection (user risk analysis, risky login detection), access reviews, and more. (EMS E3 only had P1, which provides Conditional Access and basic identity management, but not the risk-based automation or PIM.)
- Azure Information Protection (AIP) P2 – Advanced data classification and protection services. AIP P2 (now part of the Microsoft Purview Information Protection umbrella) allows for the automatic classification and encryption of sensitive files, user-defined sensitivity labels with protection, and tracking of shared documents. This helps prevent data leakage by labeling and protecting documents and emails based on their content. P2 adds capabilities like user-driven encryption and more sophisticated classification compared to AIP P1 (which is mostly manual labeling).
- Microsoft Defender for Identity – Included as part of EMS E5 (previously known as Azure Advanced Threat Protection). This provides the on-prem AD threat monitoring as described above. With Defender for Identity here, EMS E5 helps detect identity-related attacks in your hybrid environment.
- Microsoft Cloud App Security (Defender for Cloud Apps) – EMS E5 also includes the CASB solution for discovering shadow IT and controlling apps. Gaining MCAS through EMS E5 is a big advantage, as this was historically a standalone product that is now bundled. It helps monitor cloud app usage and enforce policies on data in third-party apps.
- Microsoft Intune – Intune for mobile device and application management is included with EMS E3 already, so while Intune itself isn’t “upgraded” by E5 (there’s just one version of Intune), having EMS E5 ensures you have Intune to manage devices. Intune lets you enforce device compliance, deploy apps, and wipe data on lost devices – critical for a secure mobile workforce. (EMS E5 ensures you have all EMS components at the highest level, and Intune is part of that suite.)
In summary, EMS E5 provides identity governance, endpoint management, and information protection features. Notably, EMS E5 includes both Entra ID P2 and AIP P2, meaning you get a blend of security and compliance capabilities: you can protect admin accounts with PIM and MFA risk policies, and protect data with encryption and sensitivity labels.
These represent “the best of both worlds” from Microsoft’s security (identity) and compliance (information protection) stacks, in one bundle. For example, an EMS E5 user can have their sign-ins monitored for risks, elevate privileges through approval, and automatically encrypt documents containing social security numbers – all natively.
What’s Not Included: EMS E5 does not cover everything in the security universe. Importantly, it does not include Defender for Endpoint or Defender for Office 365. Those endpoint and email threat protections are part of the E5 Security add-on (or the Windows/Office E5 licenses).
If you license someone with EMS E5, they will have top-tier identity and cloud security. However, their email and devices will still only have the protection provided by your base licenses (e.g., Exchange Online Protection and Defender for Endpoint Plan 1 if on M365 E3).
For some organizations, that’s acceptable because they might use a third-party solution for endpoint or email security, or they consider the baseline protection adequate for those users. Additionally, EMS E5 doesn’t include any compliance solutions, such as eDiscovery or audit – it’s strictly the EMS suite (mobility and security).
So, key difference: Microsoft 365 E5 Security vs. EMS E5:
- The E5 Security add-on provides the full Microsoft Defender XDR suite (endpoint, email, identity, and cloud app) plus AAD P2. It’s best if you want Microsoft’s advanced threat protection across the board.
- EMS E5 provides AAD P2, Intune, AIP P2, MCAS, and Defender for Identity, focusing on identity and data security. It’s useful if you want to bolster identity and cloud security, but perhaps you’re handling endpoint or email security separately or aren’t ready to upgrade it for all users. EMS E5 can be a more budget-friendly middle ground in certain cases. Many CIOs choose M365 E3 as their standard, then mix in a few E5 Security and/or EMS E5 licenses for those who need extra protection – we’ll discuss examples of this in the next section.
Microsoft Purview and Compliance (Microsoft 365 E5 Compliance Add-on)
While the above add-ons focus on security, Microsoft’s compliance and risk management solutions are under the Microsoft Purview umbrella. For organizations with stringent compliance, legal, or data governance needs, Microsoft offers the M365 E5 Compliance add-on, often referred to simply as the Microsoft Purview suite in context.
This is the counterpart to E5 Security: a per-user add-on that unlocks all the advanced compliance features of Microsoft 365 E5.
Purview Overview:
“Microsoft Purview” is the branding for an integrated set of data protection, governance, and compliance tools. It includes solutions for information protection (sensitivity labeling), data loss prevention, data lifecycle management (including retention and records management), insider risk detection, audit, compliance monitoring, eDiscovery, and more.
Many of these capabilities have basic versions in E3 plans, but the E5 level brings automation, machine learning, and advanced controls that are essential for highly regulated or security-conscious organizations.
How It’s Licensed:
Similar to E5 Security, the E5 Compliance add-on is licensed per user and can be assigned to those who need it. It’s often purchased to upgrade specific users (e.g., legal staff, compliance officers, or execs handling sensitive data) to full Purview capabilities. You don’t have to give it to everyone – you might license a subset of users for compliance features.
However, note that for some compliance features, such as applying a label or hold on content, users whose data is being governed may also require licensing. Microsoft’s official guidance is that if a user benefits from or is subject to a feature, they should be licensed.
For instance, to perform Advanced eDiscovery on a mailbox, that mailbox’s user likely needs an E5 Compliance license. CIOs should plan carefully to ensure compliance features are properly licensed tenant-wide to meet Microsoft’s requirements, even if only a few people operate the tools.
What’s Included: The E5 Compliance (Purview) capabilities include:
- Microsoft Purview Information Protection (AIP P2 features) – Advanced classification, labeling, and encryption of documents and emails. While E3 gives you basic sensitivity labels (mostly manual), E5 allows auto-labeling based on content (using machine learning or predefined rules), trainable classifiers (e.g., detect resumes, source code, etc.), and more robust protection settings. This overlaps with AIP P2 in EMS E5 – in fact, E5 Compliance also grants AIP P2 rights. A user with E5 Compliance or EMS E5 can perform auto-labeling and file encryption. This is an area where security and compliance meet: protecting data at rest and in transit.
- Data Loss Prevention (DLP) – Advanced: In E3, you have “core DLP” for Office 365, which prevents sensitive information from being emailed or shared. E5 adds Endpoint DLP, which extends DLP policies to Windows 10/11 and macOS endpoints, as well as Teams chat DLP and integration with DLP and Defender for Cloud Apps to protect data in third-party apps. For example, with E5, you can detect if a user tries to copy confidential info to a USB drive or uploads it to Dropbox, and block or log that action. Endpoint DLP was a major enhancement that required E5 Security or E5 Compliance licenses (included in the compliance suite).
- Insider Risk Management – A specialized tool to identify and manage risky user activities within your organization (such as data theft by employees, policy violations, etc.). It uses signals from across M365 (like DLP incidents, atypical file downloads, or HR data like a user leaving the company) to surface potential insider risks. Insider Risk Management is only available with the E5 plan. E3 has nothing comparable. With the E5 Compliance add-on, you can configure risk policies and have your investigative team, such as HR or security, review and act on insider risk alerts.
- Communication Compliance – Another E5-exclusive, this helps organizations monitor communications (Teams chats, emails, etc.) for policy violations such as harassment, inappropriate content, insider trading or other code-of-conduct issues. It’s vital for regulated industries that need to surveil communications. Like Insider Risk, it requires E5 licenses for the people being monitored or at least for the monitors. Typically, only certain roles, such as compliance officers and HR investigators, may get this capability enabled.
- Advanced eDiscovery (Premium) – The E5 level of eDiscovery offers an end-to-end workflow for legal discovery, including case management, legal hold notifications, custodian management, deep search and analytics, and the ability to analyze data (such as near-duplicates and themes) within the Microsoft 365 environment. By contrast, E3 gives Core eDiscovery, which is just content search and basic hold. Advanced eDiscovery helps legal teams cull data more efficiently and even reduces reliance on external e-discovery tools. It also includes Advanced Audit, with longer audit log retention (up to 1 year by default, vs. 90 days in E3), and auditing of high-value events. If your organization has significant litigation or investigation needs, this feature alone can justify the E5 Compliance license for your legal users.
- Compliance Management & Extras: E5 Compliance also unlocks tools like Customer Lockbox, which gives you explicit control over Microsoft support access to your content. It also includes Privileged Access Management for Office 365, allowing you to approve or restrict admin tasks in Exchange and SharePoint, and Compliance Manager with additional assessments. It also increases default limits (for example, mailbox content holds and retention policies beyond E3 limits). Essentially, it provides more granular control to meet regulatory requirements.
In short, the Purview/E5 Compliance add-on brings sophisticated capabilities for protecting data (through labeling and DLP), monitoring risky behavior, and responding to compliance obligations (through eDiscovery and audit) that go well beyond the basics.
For organizations in financial services, healthcare, government, or any business handling sensitive information, these tools can significantly improve compliance posture and reduce the risk of data breaches or regulatory fines.
There are measurable benefits – for instance, a Forrester study found that companies using M365 E5 Compliance saw a 30-40% reduction in the risk of a data breach and were able to retire several legacy compliance tools, cutting costs by consolidating on the Microsoft suite.
Considerations: As CIO, determine who truly needs these advanced compliance features. Not every employee will require automatic encryption or be subject to monitoring of their communications.
Typically, you might license specific departments, such as the legal team for Advanced eDiscovery, HR for Insider Risk and Communications Compliance, and records managers for retention and records management. It’s possible to have a mix of E3 and E5 Compliance users in one tenant, plan that E5 features can only be used with the licensed users’ data.
Also, be aware of “tenant-wide” services: some features, like retention label policies, once enabled, could affect multiple mailboxes. Microsoft’s licensing guidance notes that if a feature can’t be technically limited to only licensed users, you should license all users who benefit from it.
An example might be a retention auto-labeling policy that scans all SharePoint sites for sensitive info – arguably, all those sites’ users would need licensing. Work with your licensing specialist or Microsoft reps to ensure compliance with licensing rules when rolling out Purview features.
Allocating Premium Security & Compliance Licenses by Role
One of the key advantages of these add-on licenses is the flexibility to assign them to specific users or roles who need the enhanced features.
A cost-effective Microsoft 365 strategy often involves giving different license levels to different user segments based on risk profile, job function, and data access needs.
Below are practical guidelines on how a CIO might allocate E5 Security and E5 Compliance/Purview capabilities across various roles in the organization:
- Executives and VIPs: Senior leadership, including C-suite executives and VPs, are high-value targets for cyberattacks (such as spear phishing and account compromise) and often handle the most sensitive data. It is wise to equip them with E5 Security features for maximum protection. This means their accounts get Azure AD P2 (for enhanced identity security, such as conditional access policies tailored to executives, and PIM if they hold any privileged roles), and the full Defender suite (to protect their devices and email from advanced threats). Executives’ mailboxes should also have Defender for Office 365 Plan 2 to guard against phishing attempts that standard filtering might miss. On the compliance side, consider at least some E5 Compliance features if execs deal with regulated information or are likely to be subject to legal inquiries. For example, CEOs or board members often have their communications retained for legal purposes or are involved in insider risk scenarios (e.g., handling M&A confidential information). At minimum, ensure their email and files can be included in Advanced eDiscovery by licensing them accordingly. Summary: Give execs the full E5 treatment for security and compliance features as needed – their accounts are too critical to skimp on protections.
- IT Administrators and Security Personnel: Anyone with elevated access (tenant admins, global admins, domain admins, security analysts) should have the E5 Security add-on or EMS E5 for their account. These are the “keys to the kingdom” accounts – you want PIM to enforce just-in-time admin access and risk-based MFA to protect against their compromise. Admins will use Azure AD P2 features to manage others, so they need to be licensed themselves. Also, enabling Defender for Identity on your domain controllers and using Defender for Cloud Apps to monitor admin cloud activities can help catch internal threats. Most organizations assign their IT staff the highest security license available as a best practice (and Microsoft even recommends giving admin accounts an E5 license solely for the security benefits). For compliance, your security or compliance admin accounts may require E5 Compliance licensing to configure and review features such as Insider Risk or eDiscovery cases, even if they are not the subject of those actions themselves. Ensure whoever will administer compliance features (e.g. a compliance officer in IT) has appropriate licensing. Summary: All privileged or admin users receive E5 Security (AAD P2, Defenders); give E5 Compliance licenses to those who administer or are directly subject to compliance solutions.
- Legal and Compliance Officers: The legal department and compliance teams are prime candidates for E5 Compliance licensing. These users need to create legal cases, perform content searches and analysis, place holds on mailboxes, and review audit logs – activities that the advanced eDiscovery tool and audit features facilitate. By assigning them E5 Compliance, they can use the full Purview suite to do their jobs efficiently (e.g., a compliance officer can set up communication compliance policies to monitor insider trading keywords, or a legal counsel can run an Advanced eDiscovery case in-house rather than outsourcing it). They typically do not individually need E5 Security (unless they are also at high risk for cyber threats), but protecting their accounts is still important, at least to ensure they have MFA and are covered by basic security measures. If your legal team handles extremely sensitive information, you might also consider giving them E5 Security for added device and email protection, but this is usually secondary. One thing to note: if the legal team places holds on many users’ mailboxes for a case, those target users should ideally have E5 Compliance as well, per licensing rules. In practice, some companies choose to temporarily license custodians during a big case. Summary: Equip legal and compliance personnel with E5 Compliance so they have the advanced tools to manage the organization’s obligations. Cover their accounts with adequate security (baseline or E5 Security), as they access sensitive data. However, the priority is the compliance feature set.
- Human Resources & Insider Risk Team: HR managers and those responsible for insider threat investigations should receive E5 Compliance (Purview) capabilities such as Insider Risk Management and Communication Compliance. Typically, a small group in HR or a specialized “Insider Risk” team reviews alerts about potential internal misconduct or data leaks. Those users must be licensed for these tools to access the dashboards and investigation features. Often, these individuals hold roles of trust, but not necessarily technical ones — you can license just the specific HR investigators, rather than every HR staffer. For example, you might give 2-3 HR investigators and a compliance manager the E5 Compliance add-on, enabling them to oversee communication policies (like flagging harassment in Teams chats) or insider risk alerts (like an employee downloading large amounts of confidential data before resignation). Regular HR staff who don’t need to use these tools can remain on E3. From a security perspective, HR records are also sensitive; ensure HR accounts have at least a baseline level of protection and conditional access. For very senior HR executives or those handling highly confidential projects, consider E5 Security as well. Generally, the biggest uplift for HR is on the compliance side. Summary: Give select HR/compliance staff E5 Compliance for Insider Risk and communication monitoring; they will form the team that can detect and address internal issues early.
- Frontline Workers and General Staff: Frontline employees (e.g., retail associates, factory workers, and customer service reps using F-series licenses) and most general knowledge workers typically remain on E3 or business plans without add-ons for cost efficiency. These users usually have a lower risk profile – they may not access sensitive data or systems, and there are many of them, making E5 licensing cost-prohibitive at scale. Instead, secure them using baseline capabilities: Enforce multi-factor authentication (available even without P2 via Security Defaults or AAD P1), use Exchange Online Protection and Defender for Office 365 Plan 1 (which is included in certain plans or available as standalone) to give them reasonable email security, and apply basic DLP policies in email/SharePoint for everyone. If a subset of frontline workers handles sensitive information (such as regional managers dealing with financial data), you could selectively upgrade those individuals. But in general, reserve E5 add-ons for the roles that truly justify the advanced features. Frontline plans like M365 F3 don’t include all the capabilities of E3. However, you might still integrate them into your security strategy (e.g., Intune can manage corporate mobile devices for frontline staff under their existing license). Remember, you can mix license types in your tenant so that frontline workers can use F3, standard office staff can use E3, and only critical users can use E5 add-ons. This tiered approach is key to balancing security with cost.
- Developers, Finance, and Other High-Impact Individuals: Besides the obvious roles above, consider other users who might warrant E5-level protection. For example, software developers or engineers with access to source code and intellectual property could be targets of IP theft. Giving them Azure AD P2 (for robust access control) and Defender for Cloud Apps (to monitor unusual data downloads) might be prudent. Finance department users who deal with earnings data or customer financial information might need stronger email protection (to prevent spear phishing that leads to wire fraud). They should be in scope for DLP policies (perhaps requiring E5 if you want endpoint DLP on their devices). For these roles, you can choose either the E5 Security add-on to cover advanced threat protection or EMS E5, if the focus is on data labeling and identity management. The decision might hinge on whether their endpoints require the full EDR (if so, E5 Security; if they already have a third-party EDR, EMS E5 could suffice for identity and AIP). Some organizations also license finance executives with E5 Compliance to automatically label and encrypt financial documents. The key is to perform a risk assessment by role – identify users or departments that handle the crown jewels of data or face elevated threat levels, and allocate your E5 licenses there.
License Management Tip:
Use Azure AD’s group-based licensing to your advantage. You can create security groups for each role (e.g., “Execs – E5 Security” or “Legal – E5 Compliance”) and assign licenses to those groups. This automates license deployment as people join or leave those roles, ensuring the right users always have the correct add-on. It also provides a clear mapping of licenses to business justifications, which is useful for audits and renewals.
Finally, communicate to users who receive these premium licenses why they have them and encourage them to leverage the features. For instance, if you give an executive E5 Security, brief them on using the Microsoft Authenticator app for passwordless login and how Safe Links will protect their email.
If legal gets advanced eDiscovery, provide training so they can fully utilize in-house discovery without needing costly external vendors. This way, you maximize the ROI of each premium license assigned.
Evaluating Cost-Effectiveness: E5 Add-ons vs. Baseline vs. Third-Party Solutions
CIOs must continuously evaluate whether Microsoft’s premium security and compliance features justify their cost compared to using the basic included tools or investing in third-party products. Here’s how to approach this analysis:
1. Understand Baseline Capabilities:
First, know what you already have with your existing licenses (E3 or others). Many organizations find that Microsoft 365 E3 provides a good foundation: Azure AD P1 for basic identity (MFA, conditional access), some level of threat protection (e.g. Defender for Office 365 Plan 1, which covers safe attachment/link scanning but without the hunting and automation of Plan 2), Intune for device management, and core compliance features like basic eDiscovery and DLP in Office apps.
Baseline tools are effective for standard needs – if your risk profile is low, you might not need to upgrade everyone. Evaluate recent incidents and weaknesses: Are you experiencing breaches or identifying gaps in what E3 provides? For example, if phishing emails are still slipping through or if users are exfiltrating data undetected, that’s a sign that the baseline is not enough in those areas.
2. Identify Gaps and Overlaps:
List out what additional protections E5 Security or Compliance would add and see if those address your specific gaps. For instance, advanced threat hunting, automated incident response, and unified XDR correlation (provided by Defender for Endpoint products) can significantly improve your security operations if you’re currently blind to sophisticated attacks.
On the compliance side, can your team manage legal hold and data governance tasks using E3 tools, or are they manually handling work that E5 automation could handle, such as classifying thousands of documents? If you already own third-party solutions, map them against E5 features: maybe you have a third-party CASB, a separate endpoint detection solution, or a DLP product from another vendor.
Check if E5’s Defender for Cloud Apps, Defender for Endpoint, or Purview DLP could replace those. Often, consolidating multiple tools into Microsoft 365 can save money and simplify operations. Microsoft’s E5 suite is designed to cover what you might otherwise buy from 4-5 different vendors (identity security, CASB, EDR, email security, DLP, eDiscovery, etc.).
If you’re paying separately for, say, Okta MFA, Zscaler CASB, CrowdStrike endpoint, Proofpoint email security, and Symantec DLP – the combined cost of those point products might be far more than an E5 add-on, not to mention integration headaches.
3. Use Data to Justify ROI:
Microsoft’s licensing isn’t cheap, but it can be cost-effective when you factor in risk reduction and tool consolidation. Consider both tangible and intangible ROI: Tangibly, you might eliminate subscription costs for third-party security products (for example, dropping a standalone CASB and using Defender for Cloud Apps could save tens of thousands annually).
You’ll also save on infrastructure or management overhead if those were on-prem solutions (as seen in a Forrester study where retiring legacy compliance software saved $2.3M over three years). Intangibly, breach prevention and rapid response have a huge financial impact: a successful breach can cost millions in fines, response, and downtime.
Suppose E5’s advanced tools lower breach likelihood by 30% and cut breach costs nearly in half. In that case, that reduction in risk exposure is a real financial benefit – even if it’s hard to pinpoint on the budget sheet, it’s like an insurance policy paying off.
Also account for productivity gains: for example, automated eDiscovery could save your legal team hundreds of hours that would otherwise be billed externally or spent manually sorting data. Improved processes, such as auto-labeling data rather than manual classification, save staff time and improve compliance consistency.
4. Compare Against Third-Party Efficacy:
If you already have third-party tools that cover some E5 functions, evaluate their effectiveness and how well they integrate. Are they truly “best of breed” and providing value above what Microsoft offers natively? In some cases, you may find that a specialized tool is very feature-rich (for example, a dedicated DLP product might have broader device coverage). However, consider the integration and complexity cost: a patchwork of solutions means multiple consoles, potential gaps between them, and often slower response to threats (since one tool might detect something but not automatically inform the others).
Microsoft’s integrated approach means if Defender for Endpoint sees malware, it can automatically trigger account disable via Entra ID and flag files for DLP – all under one roof. Third-party tools can be integrated, but often require custom work or SIEM correlation. Simplicity can reduce errors and administrative effort on its own. Many organizations realize that while point solutions might be slightly stronger in one niche, the Microsoft suite is “good enough” across the board and far easier to manage overall.
And “good enough” may raise overall security because the coverage is consistent. That said, if you have recent investments in a certain tool that outperforms Microsoft’s equivalent (and you have resources trained on it), factor that into your timeline for moving to E5 features. You might not rip everything out on day one, but you may plan to phase out vendors when contracts end to consolidate under E5, if the cost-benefit lines up.
5. Leverage Microsoft Agreements and Trials:
Microsoft and its partners often help with ROI justification. For example, licensing partners can run a Security or Compliance workshop that evaluates your environment and produces a report (often funded by Microsoft) showing how E5 features could reduce your risk or costs.
There are also trial licenses available – you could pilot E5 Security with a subset of users or enable an advanced feature in a controlled way to measure impact. Use those trials to gather internal data: run an advanced threat hunting query in Defender and see if it identifies issues that your other tools missed. Or enable auto-labeling on a small data set to gauge accuracy. Real-world trials can make the value clearer to your board or CFO when you ask for a budget.
6. Consider Partial Deployment:
Cost-effectiveness might mean not going all-in at once. We discussed role-based licensing – by limiting E5 add-ons to, say, 20% of your users who account for 80% of the risk, you maximize bang for your buck. For instance, instead of spending $X million to upgrade all 10,000 employees to E5, you spend a fraction of that to license 2,000 key users (and maybe use a few standalone features for the rest).
If the risk reduction achieved by covering those 2,000 high-risk users mitigates most of the threats, that’s a win. Just ensure that leaving the other 8,000 at lower protection is an acceptable risk (perhaps they have minimal access or you have alternate controls).
This targeted approach is very common – many enterprises stick to an “E3 for most, E5 for few” strategy to stay within budget. It’s all about diminishing returns: after a certain point, the incremental benefit of giving E5 to every user may not justify the enormous cost, especially for users who rarely access sensitive systems.
7. Avoid Redundancy:
Paying twice for the same capability is not a cost-effective approach. Once you adopt an E5 add-on, ensure you retire any redundant third-party subscriptions. For example, if you roll out Defender for Endpoint, you should phase out the legacy endpoint security software (running both is not only costly but can conflict on devices).
If you start using Purview DLP, consider consolidating or sunsetting that separate DLP product for endpoints, or at least re-scoping it to cover only what Purview cannot. This rationalization can usually be timed with contract renewals. Create a roadmap: list your current tools by category (Identity, Endpoint, Email, Cloud App, DLP, etc.). Then, for each, determine if Microsoft now covers it with E5. If yes, plan to eliminate overlap.
If not, keep the third-party or see if Microsoft has it on their roadmap. Microsoft’s security and compliance offerings have expanded rapidly, so a gap today might be filled by them tomorrow (for instance, they have been regularly improving their endpoint and multi-cloud capabilities). Staying informed about Microsoft’s roadmap can help determine whether investing in a third-party solution is wise or if you can soon consolidate that function as well.
8. Quality and Efficacy:
Finally, ensure that by choosing Microsoft, you’re not compromising on quality where it matters. Independent evaluations (from Gartner and MITRE ATT&CK, among others) have shown that Microsoft’s Defender suite is among industry leaders in threat detection.
The sheer volume of signals Microsoft processes (billions of authentications, emails, etc.) gives their AI-driven security a strong edge in many cases. Many CIOs report improved security outcomes after switching to E5 Security tools, along with reduced complexity.
For compliance, Microsoft’s integration (label once, enforce everywhere) often yields better adherence to compliance than siloed systems. That said, if you have niche requirements (e.g., extremely specialized DLP for non-Windows machines or an eDiscovery tool tuned for certain legal workflows), factor those in.
But broadly, Microsoft’s native tools have matured to the point where they can replace most standalone solutions without losing capability, and often with gains in integration. The cost-effectiveness comes not just from license savings, but from having a single ecosystem that your IT staff can master, rather than being stretched across multiple platforms.
In summary, weigh the cost of E5 add-ons against: the cost of alternative tools (or doing nothing), the potential cost of security incidents, and the efficiency gains for your teams. Often, the analysis shows that investing in Microsoft’s top-tier tools pays off over time, especially if you optimize the deployment (not over-licensing and fully utilizing what you pay for).
We’re essentially looking for the sweet spot where you maximize security and compliance per dollar spent. Many organizations find that sweet spot by using E5 Security/Compliance judiciously for the users who matter most, combined with phasing out duplicative products to harvest savings.
Best Practices: Consolidating Third-Party Tools into the Microsoft Stack
One of the strategic advantages of adopting Microsoft 365 E5’s security and compliance features is the opportunity to consolidate formerly siloed tools into a unified platform.
Reducing the number of vendors and products can lower costs, streamline IT operations, and improve security through integration.
Below are best practices for moving toward a primarily Microsoft-centric security and compliance ecosystem:
- Adopt an “Integrated Security” Mindset: Shift your perspective from individual point solutions to an integrated Microsoft XDR (Extended Detection & Response) approach. Instead of separate dashboards for email security, endpoint antivirus, CASB, etc., use Microsoft 365 Defender and Purview as your centralized consoles. This unification means alerts from different domains (identity, device, data) are correlated automatically. For example, a single incident view could show that a compromised account (identity) led to a malware installation (endpoint) and a risky OAuth app usage (cloud app) – all linked by Microsoft’s tools. Security teams can respond faster with a complete picture. To get here, plan to replace standalone anti-malware, EDR, CASB, and email filtering solutions with the corresponding Defender components in E5 Security. As you consolidate, take advantage of Microsoft Sentinel (if you use a SIEM) to ingest Microsoft 365 signals – many find that with all Microsoft defenses in place, Sentinel or the Defender portal becomes the single source of truth for incidents.
- Identity and Access Management Consolidation: Many organizations use third-party IAM or MFA services in addition to Azure AD (Entra ID). A best practice is to consolidate identity management onto Azure AD Premium P2 as your one-stop solution for single sign-on, multi-factor authentication, conditional access, and identity governance. Retire separate MFA servers or external SSO gateways if possible. Azure AD P2 (part of E5 Security/EMS E5) gives you Adaptive MFA (prompting based on risk), passwordless auth options, and Lifecycle workflows/access reviews – capabilities often found in specialized IAM products. By using Azure AD as your central identity platform, integrated with on-prem AD via AAD Connect, you reduce complexity. It also improves user experience (one set of credentials, one set of sign-in policies) and security (because AAD sees all login attempts and can thwart suspicious ones globally). If you have something like Okta or Duo, evaluate if you can migrate those functions to Azure AD P2 to simplify your environment and cut licensing costs for the third-party. Many CIOs find it easier to manage a single identity provider, and Microsoft’s ecosystem integrates well with Azure AD (naturally). If you must use a third-party service for some users, at least ensure it sends signals to your security monitoring.
- Endpoint Security and Device Management: Consolidation here means using Microsoft Defender for Endpoint, along with Intune, as your core endpoint security and management solution. If you have a traditional antivirus or EDR agent from another vendor on devices, plan a transition to Defender for Endpoint P2 (included in E5 Security). Defender for Endpoint provides not only anti-malware but also EDR, vulnerability management, and integration with Azure AD conditional access (devices can be quarantined if compromised). It’s built into Windows 10/11 (just requires licensing to enable full features), which reduces agent bloat. For mobile device management or PC management, use Intune instead of a third-party MDM. Intune integrates device compliance with Azure AD: for instance, only Intune-compliant devices can access corporate apps. This native integration outshines many patchwork setups between separate MDM and conditional access systems. By consolidating on Intune, you also unify policy deployment for Windows, iOS, Android, and Mac in one place. Best practice is to onboard all your endpoints (including servers, via the appropriate licenses) into Defender and manage them in Intune/Endpoint Manager. This way, if a threat is detected on one endpoint, Microsoft can automatically isolate the device and protect the rest of the network – something hard to automate if your EDR and network access control are from different vendors.
- Data Protection and DLP: Many companies use dedicated DLP solutions, such as network DLP appliances or endpoint DLP agents, separate from Microsoft. With the capabilities of Microsoft Purview Information Protection and DLP, you can often replace those or at least consolidate policies. Best practice is to use sensitivity labels as the unifying classification system for your data. Apply labels in Office apps, allowing users to easily classify documents, and use auto-labeling for specific rules. Then, enforce protection through Purview DLP across Exchange, SharePoint, Teams, and endpoints. If you were using, say, a separate tool to inspect outbound emails for sensitive data, you can turn on Microsoft’s DLP for Exchange Online and achieve the same or better results (with fewer false positives over time, thanks to unified labels). For endpoint DLP, if you license E5, deploy it using the onboarding script (which works through the Defender for Endpoint engine) and phase out any legacy DLP agents that perform a similar function. One big advantage is that Purview DLP integrates with Defender for Cloud Apps, allowing you to extend policies to cloud services, so you can cover SaaS apps without a separate CASB/DLP integration. All DLP alerts then funnel into the Purview portal, where compliance teams can respond uniformly. When consolidating, ensure you migrate any important rules from the old system into Purview and train staff on the new incident response process. In many cases, consolidating on Microsoft for DLP reduces the administrative overhead of maintaining regex rules in multiple systems and closes gaps (like files moving to OneDrive now follow the same labeling as when emailed).
- Email Security and E3 vs E5 Balance: If you previously augmented Exchange Online with a third-party secure email gateway (SEG) or phishing filters, consider whether Defender for Office 365 Plan 2 (in E5 Security) can replace those. Microsoft has invested heavily in its anti-phishing technology – features like Safe Links, Safe Attachments, impersonation detection, etc., are on par with many SEG products. Plus, having it integrated means you don’t break the native mail flow (some third-party gateways require complex mail routing). A best practice that some organizations follow is to run Defender for Office 365 in “parallel” with an existing SEG during evaluation, then switch over if the results are good. Many find that with proper tuning, Microsoft can catch as much as the external gateway. By removing an external gateway, you simplify mail flow and reduce potential points of failure. If you keep a SEG for specific reasons (such as specialized spam handling), at least you can still use Defender for O365 as an added layer, just ensure they’re not duplicating efforts in a way that conflicts. However, fully consolidating email security into Microsoft 365 often provides a smoother admin experience. For example, you investigate threats in the same Security Center that displays device alerts, rather than switching to another portal.
- Cloud App Security & Shadow IT: If you had a third-party CASB (Cloud Access Security Broker) to monitor SaaS usage (like Netskope or McAfee Skyhigh), see if Microsoft Defender for Cloud Apps can fulfill that role. It can discover cloud app usage via firewall logs, control app permissions to your Microsoft 365 data, and apply DLP to cloud transactions. You may need to integrate it with your firewall or proxy logs for a full shadow IT discovery, but once done, it provides a centralized view of cloud risks. Consolidating CASB into the Microsoft stack means your cloud threat detections (OAuth app abuse, impossible travel logins, data downloads) feed into Azure AD and Defender alerts seamlessly. Also, consider using Azure AD App Proxy or Conditional Access App Control as lighter alternatives to some CASB functions (for example, to give remote access to on-prem apps with additional monitoring, without a separate VPN solution). The more you leverage Microsoft for cloud security, the fewer consoles and agents you need to manage for controlling user access to apps.
- Monitoring and Incident Response: With fewer disparate tools, your security operations center (SOC) can streamline monitoring and response. Best practice after consolidation is to develop unified playbooks. For example, suppose an alert comes in through Microsoft 365 Defender. In that case, the playbook might automatically isolate a device, reset a user’s password (via Azure AD), and initiate an eDiscovery hold if data leakage is suspected – all possible within the Microsoft ecosystem. If you previously had separate playbooks for each tool, you can retire them. Also, make use of the automation features Microsoft provides: e.g., automatic investigation in Defender can resolve alerts without analyst intervention. Communication between Microsoft tools means you can trust, for instance, that marking a phishing email as malicious in the portal will not only remove that email from all mailboxes (thanks to Threat Explorer) but also check if the sender’s URL was accessed on any endpoint, etc. This level of cross-domain remediation is a huge benefit of consolidation.
- Optimize the Licensing Mix: When consolidating, you may find that some third-party tools provide functionality to all users. At the same time, your move to Microsoft E5 features might be targeted at specific users. This is okay – you can have a layered approach. For example, you may have had an email filter for all mailboxes. Now you decide to enable Defender for Office 365 P2 for high-risk users and rely on standard Exchange Online Protection for the rest. You’ve removed the third-party cost entirely and accepted a slightly lower grade of protection for low-risk mailboxes. This is a valid strategy; ensure that those lower-tier users still meet your minimum risk tolerance. In many cases, baseline security is still quite good (Microsoft’s E3-level protection is decent for most spam/malware), and you can supplement it with security awareness training to mitigate human risk. The key best practice is not topay for two solutions serving the same purpose for the same users. Use Microsoft for the users you license; use baseline for the others; and eliminate the extra vendor. If needed, you can always adjust license counts later if you find that a certain group of users needs to upgrade to E5 features.
- Continuous Improvement: Lastly, treat the Microsoft stack as something to continuously tune. Microsoft releases updates and improvements frequently (especially in security and compliance workloads). Stay informed about new features via Microsoft’s roadmap or your account team. Sometimes, a feature update can allow you to disable another tool. For instance, Microsoft might expand Insider Risk Management to cover new signals, which could let you decommission a user behavior analytics tool. Being agile in adopting new Microsoft capabilities ensures you’re getting the most out of the consolidation. It also prepares you for renewals: you can go into licensing discussions knowing precisely which add-ons you need more of and which legacy product budgets can be reallocated to Microsoft. Engaging with a Microsoft Security & Compliance partner can also help; they can audit your environment to find underutilized third-party solutions that E5 could absorb, and assist in optimizing configurations for peak performance (so you’re not tempted to revert to old tools).
In summary, consolidating under Microsoft’s native security and compliance stack is about simplifying and strengthening. You reduce vendor sprawl, ensure tighter integration, and likely save costs by eliminating overlapping toolsets.
Many CIOs have pursued a “Microsoft-first” strategy for these reasons, standardizing on the robust toolset that M365 E5 offers and only using third parties to fill truly critical gaps. The result is often improved visibility, faster response times, and a lower total cost of ownership for security and compliance management.
CIO Recommendations
In conclusion, here are the key actions and licensing strategies I recommend to CIOs when planning for security and compliance in Microsoft 365:
- 1. Align License Levels with User Risk: Take a tiered approach by assigning the most powerful (and costly) licenses to users who present the highest risk or value. Perform a role-based risk assessment and assign E5 Security add-ons to accounts that are prime cyber targets (like executives and admins) and E5 Compliance to those handling legal, HR, or sensitive data oversight. This targeted licensing maximizes protection where it’s needed without overspending on low-risk users.
- 2. Leverage E5 Add-ons Before Full Suite Upgrades: If you’re on M365 E3 (or Office 365 E3 + EMS), consider the E5 Security and E5 Compliance add-ons as flexible ways to enhance capabilities. They allow you to incrementally adopt advanced features without requiring everyone to switch to a full E5 subscription. Use this granularity to your advantage – for example, start with an E5 Security add-on for 500 users in critical roles rather than E5 for all 5,000 users. You get much of the E5 value at a fraction of the cost. Expand coverage over time if needed, but only as justified.
- 3. Compare Bundle vs. Standalone Costs: When adding capabilities, prefer Microsoft’s bundled suites (E5 add-ons or EMS E5) over a collection of standalone feature licenses. The bundles are generally priced to offer better value. For instance, EMS E5 includes AAD P2, Defender for Identity, Cloud App Security, and AIP P2 together – often cheaper than buying two or three of those separately. Similarly, the E5 Security add-on is more economical than licensing Defender for Endpoint, Defender for O365, etc., one by one for the same user. Bundles also simplify license management. Consider standalone licenses (such as just Azure AD P2) only for very specific needs or small user sets; otherwise, an add-on suite will reduce complexity and usually offer discounted pricing.
- 4. Consolidate and Retire Redundant Tools: Audit your existing security and compliance solutions and identify overlaps with Microsoft 365 capabilities. Plan to retire third-party tools that cover the same area as an E5 feature, as long as Microsoft’s solution meets your requirements. Each redundant system eliminated is one less contract to pay for, and one less platform for your team to maintain. Common targets include legacy email gateways, separate mobile device management systems, on-premises DLP or archive systems, standalone CASBs, and secondary identity providers. Migrating to Microsoft’s integrated tools will save costs and reduce the “friction” between disparate systems. Ensure that you coordinate these retirements with the rollout of their equivalent Microsoft features to avoid any security gaps.
- 5. Maximize Use of Features (Avoid Shelfware): Simply buying an E5 add-on doesn’t improve security – using the features does. Ensure that once licenses are assigned, the corresponding services are configured and adopted. Set project timelines to roll out each component (e.g., enable Defender for Endpoint on all targeted devices this quarter, implement sensitivity labels in key SharePoint sites next quarter, etc.). Provide training and awareness to both IT staff and end-users about new capabilities. For example, train your security team on the Microsoft 365 Defender portal and automation playbooks, or educate employees that emails will now have “Safe Links” scanning. Measure feature usage through reports (Microsoft provides usage analytics for many of its services). The goal is to derive the full security and compliance value from every E5 license you pay for. This also strengthens your case when renewing licenses, as you can demonstrate tangible benefits and usage.
- 6. Pilot and Phase Deployment: Use a phased deployment strategy for premium features to ensure a smooth adoption and to gather evidence of value. Start with pilot groups for tools like Defender for Endpoint or Purview DLP – perhaps using IT department devices or a single division of the company first, then scale up. This approach lets you work out configuration kinks and build success stories internally. It also allows you to validate that Microsoft’s tools function as expected in your environment and to fine-tune policies, such as adjusting DLP rules to minimize false positives. Phasing can be role-based or feature-based, but it has a roadmap. Quick wins (like turning on MFA for all via Azure AD, if not already done, or enabling basic Safe Links) can often be done early with little friction and provide immediate risk reduction. More complex features, such as Insider Risk Management, might be phased in later once you have stakeholder buy-in and clear processes in place. By the end of the phased plan, you should have gradually introduced the majority of E5 capabilities that you intend to use, with lessons learned at each step.
- 7. Track Outcomes and Value: As you implement E5 Security and Compliance features, track key metrics and outcomes. Examples: reduction in malware incidents after Defender for Endpoint rollout, number of phishing emails caught by Defender for O365 that previously reached inboxes, time saved in eDiscovery searches with advanced tools, or compliance audit findings before vs. after Purview solutions. Quantify any cost savings from eliminating other products (hard savings) and improvements in incident response or risk posture (soft savings). Also, gather feedback from end-users and administrators on how the new integrated approach is working (for example, the legal team finding Advanced eDiscovery helpful, or admins appreciating PIM for controlling access). Compile these metrics and testimonials into reports for executive leadership. This not only proves the ROI of the licenses but also highlights progress in security maturity. With hard data, you can justify the ongoing investment in E5 add-ons and even make a case for expanding their use if needed. Regularly reviewing this data as a CIO helps ensure the strategy stays on track and that you’re addressing any gaps.
- 8. Maintain Flexibility in Licensing: Microsoft licensing is continually evolving. Stay informed about new add-on offerings or changes in what’s included. For example, if Microsoft shifts a feature from one bundle to another or introduces a new SKU (they sometimes create industry-specific bundles or split features differently), be prepared to make adjustments. Also, use annual true-up or true-down cycles, or monthly per-user licensing (if on new commerce flexibility), to adjust license counts as your workforce changes. If you have a temporary project that requires more E5 licenses for 3 months (say a big legal case needing many mailboxes on hold), consider short-term add-on subscriptions for that period rather than over-licensing permanently. Conversely, if you downsize or find that some E5 licenses were not used as anticipated, reassign or reduce them. The best practice is to periodically audit who has E5 add-ons and confirm they still need them. An example action: after a high-profile project ends, maybe some users can revert to E3 if they no longer require those advanced features. Optimizing license allocation on an ongoing basis ensures cost-effectiveness.
- 9. Partner with Stakeholders: Security and compliance are not just IT issues – they involve executive risk committees, legal departments, HR, and often the board. Engage these stakeholders in the journey. Explain the “native Microsoft” strategy and how it benefits the organization (simpler, integrated, likely more cost-effective long-term). Garner support from the CFO by highlighting cost avoidance (consolidation savings) and from the CEO by emphasizing reduced risk (fewer breaches, better compliance). Work with HR and legal early on when deploying tools like Insider Risk or Communication Compliance to establish proper usage guidelines and address privacy concerns. A CIO-led initiative with multi-stakeholder buy-in will face fewer roadblocks. Also, consider external partners: involve your Microsoft licensing partner or a consultant for expertise – an experienced Microsoft licensing advisor (like the perspective of this playbook) can help navigate complexities and ensure you get the best value deal. Microsoft often offers programs or promotions for E5 adoption; a partner can help you leverage these, such as discounted trials or funding for deployment. Essentially, don’t go it alone – use all available resources to refine your approach.
- 10. Embrace the Full Ecosystem (Long-Term): Finally, as a long-term recommendation, plan for a future where most of your security and compliance needs are met within the Microsoft 365 ecosystem. This doesn’t mean blindly using Microsoft for everything, regardless of fit, but rather strategically integrating where it makes sense. Microsoft continues to enhance the E5 suite (e.g., adding new AI-driven security tools, expanding Purview into new data estate areas). Keep an eye on relevant innovations like Microsoft Sentinel (cloud-native SIEM that complements E5), Microsoft Priva (privacy risk management, related to Purview), and new Entra ID features. Over time, you may find that even niche requirements can be fulfilled by Microsoft’s platform, allowing further consolidation. By architecting with Microsoft as the hub, you also make your environment cloud-first and ready to adopt future technologies such as Microsoft’s AI security copilot or advanced analytics that plug into their cloud. This future-ready stance will serve the organization well as threats evolve. It also positions you to negotiate better with Microsoft. As a large E5 customer, you can often get more support and influence on feature requests. In essence, commit to the platform and shape your roadmap around it, with periodic re-evaluation to ensure it remains the optimal path.
By following these recommendations, CIOs can create a balanced licensing strategy that strengthens their security and compliance posture in a cost-conscious manner.
The key is to be deliberate and strategic: invest where it counts, avoid one-size-fits-all approaches, and continually optimize. Microsoft’s E5 security and compliance capabilities are powerful tools – when aligned with organizational needs and paired with good policy and training, they can significantly reduce risk and complexity.
This playbook should serve as a guide to making the most of those tools as you lead your organization’s digital defense and compliance efforts.
