Microsoft 365 Compliance Licensing Options
- Microsoft 365 E3: Basic compliance tools for security and retention.
- Microsoft 365 E5: Advanced compliance features (e.g., Insider Risk Management, eDiscovery).
- Compliance Add-Ons: Extra tools like Information Protection and Communication Compliance.
- Microsoft Defender for Endpoint: This is for added security and compliance across devices.
Microsoft 365 Compliance Licensing
In today’s increasingly complex regulatory landscape, organizations need a robust framework to manage risks, protect sensitive data, and comply with various regulations.
Microsoft 365 offers a range of compliance solutions designed to help businesses address these challenges, with flexible licensing options tailored to diverse needs.
This guide explores the Microsoft 365 compliance licensing structure, focusing on its core offerings, specialized mini-suites, and best practices for managing compliance tools effectively.
Microsoft 365 Compliance Licensing
Microsoft 365 compliance licensing has evolved to provide organizations with the tools necessary for data governance, regulatory compliance, risk management, and protection of sensitive information. Microsoft’s compliance solutions are available across different service tiers, and their licensing options are designed to scale with an organization’s needs.
The two main licensing paths for compliance in Microsoft 365 are:
- Microsoft 365 E5 Compliance: A comprehensive compliance suite available as an add-on to Microsoft 365 E3 provides the most extensive compliance features.
- Mini-Suites: Smaller, specialized packages for organizations that need specific compliance capabilities without committing to the full E5 compliance suite.
By offering broad and targeted solutions, Microsoft ensures that businesses of all sizes can find the right fit for their compliance needs.
Core Compliance Offerings
Microsoft 365 E5 Compliance
The flagship compliance offering, Microsoft 365 E5 Compliance, is an add-on service to Microsoft 365 E3 for $12 per monthly user. The E5 compliance suite provides an all-encompassing set of tools for businesses that require advanced compliance, risk management, and data governance capabilities. Some of its key features include:
- Information Protection: Tools to help organizations protect sensitive data, including automated classification, labeling, and encryption.
- Insider Risk Management: Capabilities for detecting, investigating, and remediating potential risks arising from insiders (e.g., employees, contractors).
- eDiscovery and Audit: Enhanced tools for legal investigations, including automated eDiscovery workflows and audit log capabilities.
- Advanced Data Loss Prevention (DLP): Cross-platform DLP capabilities for protecting data across cloud services, endpoints, and apps.
- Compliance Score Tracking: A dashboard for monitoring an organization’s compliance posture, including regulatory requirement assessments and risk mitigation strategies.
Microsoft 365 E5 Compliance is suitable for organizations with complex compliance needs, such as those in regulated industries or those that need to implement comprehensive risk management policies.
Read about common licensing mistakes in Microsoft 365.
Mini-Suites
Microsoft offers three specialized mini-suites for organizations requiring specific compliance capabilities but not the full E5 Compliance suite. These more affordable options allow businesses to selectively enhance their compliance toolkit with advanced features from the Microsoft 365 E5 Compliance suite.
- Microsoft 365 E5 Information Protection and Governance: This mini-suite automates data classification, manages sensitive information, and provides retention policies to ensure data is handled correctly throughout its lifecycle.
- Microsoft 365 E5 Insider Risk Management: This suite focuses on monitoring and managing potential risks posed by insiders within an organization. It includes tools for investigating user behavior and automatically triggering risk remediation actions based on predefined conditions.
- Microsoft 365 E5 eDiscovery and Audit: Designed for organizations that need enhanced eDiscovery tools, this mini-suite helps organizations meet legal and regulatory requirements by providing capabilities for advanced search, data retention, and compliance auditing.
The mini-suites provide flexibility for organizations needing only one of these advanced capabilities rather than the entire E5 compliance package.
Prerequisites and Licensing Requirements
Microsoft 365 compliance services operate at the tenant level, meaning that when activated, they apply to the entire tenant, regardless of individual user licensing.
However, to utilize Microsoft 365 E5 Compliance or its mini-suites, certain prerequisites must be met:
Base License Requirements
Organizations must have one of the following base licenses to access Microsoft 365 E5 Compliance or its mini-suites:
- Microsoft 365 E3: The core enterprise plan that provides foundational productivity, security, and compliance features.
- Office 365 E3 + Enterprise Mobility + Security (EMS) E3: A combination of Office 365 E3 and EMS E3, which delivers additional security and compliance tools for businesses.
- Equivalent Education or Government Plans: Microsoft provides tailored compliance options for education and government organizations, often with special pricing or features.
Without one of these base licenses, organizations cannot activate the advanced compliance features included in E5 or its mini-suites.
Key Features and Capabilities
Microsoft 365 Compliance licenses offer many tools for data protection, risk management, and compliance management.
Below is a breakdown of the key features and capabilities included in the Microsoft 365 E5 Compliance suite.
Information Protection
Microsoft’s Information Protection tools are designed to help organizations safeguard sensitive data. The suite includes:
- Automated Data Classification and Labeling: Automatically apply data classification labels to documents and emails based on predefined criteria (e.g., GDPR, HIPAA, or other regulatory standards).
- Sensitive Information Detection: Built-in algorithms detect sensitive information such as credit card numbers, personal identification numbers (PINs), social security numbers, and more.
- Data Loss Prevention (DLP): Policies that prevent users from sharing sensitive data outside the organization, either by email, cloud storage, or on devices.
Risk Management
Microsoft’s Insider Risk Management tools allow businesses to detect, investigate, and mitigate potential security risks caused by insiders:
- Insider Risk Detection: Monitor user activity across the organization to identify risky behaviors, such as accessing sensitive data without proper authorization.
- Advanced Threat Protection: Includes features like threat intelligence, behavioral analytics, and real-time investigation to respond to potential threats.
- Automated Risk Remediation: Trigger automatic actions such as alerting administrators or restricting user access when potential risks are identified.
Compliance Management
Microsoft 365 Compliance features help organizations maintain and track their compliance posture:
- Compliance Score Tracking: The Microsoft Purview Compliance Manager allows businesses to track compliance status, identify gaps, and take corrective actions. It includes over 300 pre-built assessments for common regulations, such as GDPR and HIPAA.
- Regulatory Requirement Assessment: Continuously assess the organization’s adherence to regulatory requirements and receive automated guidance on mitigating risks.
- Automated Compliance Workflows: Microsoft 365 automates key compliance processes, helping to streamline tasks like risk assessments and policy enforcement.
Enterprise Mobility + Security Integration
Microsoft 365 Compliance tools are tightly integrated with the Enterprise Mobility + Security (EMS) suite, providing enhanced data protection for cloud-based workflows, identity management, and device management.
This integration allows organizations to extend their compliance features to mobile devices, cloud services, and third-party apps, ensuring that sensitive data remains protected wherever it is accessed.
Pricing Structure and Licensing Options
The cost of Microsoft 365 compliance licenses can vary depending on the features included, the size of the organization, and the licensing structure used.
Here’s an overview of the pricing:
- E5 Compliance Add-on: $12 per monthly user for organizations with a qualifying base license (Microsoft 365 E3, Office 365 E3 + EMS E3, or equivalent plans).
- Mini-Suite Pricing: The mini-suites (Information Protection, Insider Risk Management, and eDiscovery) are priced separately based on their specific features and capabilities. Pricing for these suites is typically more affordable than the full E5 Compliance add-on, making them an ideal choice for organizations with more focused compliance needs.
Microsoft offers volume licensing through Enterprise Agreements for enterprise customers with 250+ licenses. These agreements may provide discounts based on the number of users and the specific licensing terms.
Implementation Considerations
Tenant-Wide Impact
When implementing Microsoft 365 compliance tools, it’s important to consider the tenant-wide impact. Since compliance services apply across the entire tenant once activated, organizations must carefully plan their implementation.
Some key considerations include:
- Access Control Management: Managing who has access to compliance features and ensuring that sensitive data is protected across the entire organization.
- User License Allocation: Ensuring that users who require compliance tools are assigned the appropriate licenses.
- Service Availability Restrictions: Compliance features may not be immediately available for all users or regions, so it’s important to consider service availability before rollout.
FastTrack Support
Microsoft provides FastTrack deployment assistance for eligible subscriptions, helping organizations effectively implement compliance solutions. FastTrack can help with planning, configuration, and user adoption to ensure a smooth and successful deployment.
Recent Licensing Changes
As of April 2024, Microsoft has implemented significant changes to its licensing structure, including:
- Teams as a Standalone Product: Microsoft Teams is now available as a standalone product, allowing organizations to purchase it separately if they only need collaboration and communication tools.
- Base Pricing Adjustments: Microsoft has adjusted base pricing for several enterprise plans, including those for security and compliance features.
- New Add-on Options: Microsoft has introduced additional add-on options for security and compliance, providing organizations with more flexibility in purchasing and deploying these tools.
Read about Microsoft 365 Licensing for non profits.
Best Practices for License Management
To optimize Microsoft 365 compliance licensing, organizations should follow these best practices:
- Regular License Audits: Monitor usage patterns and ensure users have the appropriate licenses for their roles and compliance needs.
- Security Integration: Align compliance tools with your broader security strategy, ensuring that sensitive data is protected across all systems.
- Cost Optimization: Evaluate feature requirements carefully and consider using mini-suites for specific compliance needs to reduce costs.
- Leverage Volume Licensing: Take advantage of volume licensing discounts if your organization has many users.
FAQ: Microsoft 365 Compliance Licensing Options
What compliance tools are included with Microsoft 365 E3?
Microsoft 365 E3 includes essential compliance tools like data loss prevention (DLP) and retention policies.
How is Microsoft 365 E5 different from E3 in terms of compliance?
E5 offers advanced compliance tools, including Insider Risk Management, communication compliance, and more sophisticated eDiscovery features.
Do I need an add-on for data governance?
Yes, add-ons like Microsoft Information Protection are available for advanced data governance.
What is eDiscovery in Microsoft 365?
eDiscovery is a compliance tool that allows organizations to search and hold data for legal investigations.
Is Microsoft Defender part of compliance?
Microsoft Defender for Endpoint helps meet compliance requirements by securing devices and detecting threats.
How can I manage insider risks with Microsoft 365?
Microsoft 365 E5 includes Insider Risk Management, which helps detect, investigate, and respond to potential insider threats.
Can compliance features be used with the Business plans?
The Business plans include some compliance features but are more limited than the Enterprise plans.
Is a legal hold possible with Microsoft 365?
Legal hold is available in both E3 and E5 plans, but E5 provides more advanced capabilities.
Does E5 offer communication compliance tools?
Yes, Microsoft 365 E5 includes communication compliance tools to monitor and manage communications within your organization.
What is the role of DLP in compliance?
DLP (Data Loss Prevention) helps prevent sensitive information from being shared inappropriately and is included in E3 and E5.
Can Microsoft 365 help with GDPR compliance?
Microsoft 365 provides tools for managing data protection and compliance with GDPR, especially with E5.
What is the cost of Microsoft compliance add-ons?
The cost of compliance add-ons varies depending on the tools and features needed.
Is there a free trial for Microsoft 365 compliance features?
Microsoft often offers trials for specific compliance features, so check Microsoft’s official site for the latest offers.
What does communication compliance do?
It helps organizations monitor and manage communications for compliance, ensuring legal and regulatory standards are met.
Are there advanced analytics for compliance in E5?
Yes, Microsoft 365 E5 offers advanced analytics for compliance, including the ability to track potential risks and regulatory requirements.
