Microsoft 365

Microsoft 365 E5 Value: Using Included Features Over Third-Party Add-Ons

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Microsoft 365 E5 Value: Using Included Features Over Third-Party Add-Ons

Microsoft 365 E5 is a premium enterprise license bundle that includes a wide array of security, compliance, communication, and analytics features.

CIOs and CTOs can justify the higher cost of E5 by fully utilizing the included capabilities, rather than paying for separate add-ons or third-party tools.

The key to maximizing E5โ€™s value is leveraging what youโ€™ve already paid for โ€“ from using Teamsโ€™ built-in phone system to adopting E5โ€™s advanced security suite, thereby consolidating solutions, reducing redundant spend, and simplifying IT management.

Read M365 Downshifting Strategy: Moving Users to Lower-Cost Plans.

The E5 Bundle vs. Add-On Tools

Microsoftโ€™s E5 license comes at a premium price, but itโ€™s packed with features that would otherwise require multiple add-on licenses or external products.

Think of it like buying a fully-loaded car: you wouldnโ€™t purchase a luxury vehicle with built-in GPS and then pay for a separate navigation device.

Yet in IT, organizations often do something similar โ€“ they pay for Microsoft 365 E5 and then continue buying separate tools for capabilities E5 already includes.

This approach wastes budget and complicates the environment with overlapping solutions.

Included Features of Microsoft 365 E5: The E5 bundle extends the standard E3 feature set with advanced tools across several domains.

Key capabilities that come with E5 (and typically donโ€™t come with E3 by default) include:

  • Teams Phone System and Audio Conferencing โ€“ Enterprise-grade cloud PBX functionality integrated into Microsoft Teams for calling and conferencing.
  • Advanced Security (Microsoft 365 Defender Suite) โ€“ Tools like Defender for Endpoint (EDR), Defender for Office 365 (advanced email threat protection), Defender for Identity, and Cloud App Security are part of E5. Azure AD Premium P2 (with Identity Protection & Privileged Identity Management) is also included.
  • Analytics and BI โ€“ Power BI Pro licenses are included with E5, enabling organization-wide business intelligence and reporting without the need for separate BI subscriptions.
  • Advanced Compliance & Governance โ€“ E5 provides the full Microsoft Purview suite (advanced eDiscovery, Insider Risk Management, audit, and Information Protection features like auto-classification and DLP).

By having all these in one package, E5 can often replace a โ€œpick-and-mixโ€ of point solutions from multiple vendors.

The value proposition is that a single E5 license per user can cover needs that might otherwise require several separate licenses or services.

Consolidating Communication with Teams Phone

One major feature included in E5 is the Microsoft Teams Phone system (cloud PBX).

Many enterprises still pay for third-party telephony or PBX services (like legacy Cisco/Avaya systems or separate cloud voice providers) even after upgrading to E5.

This results in paying twice for phone capabilities: once to Microsoft (since E5 includes a Phone System license) and again to the external telephony vendor.

To justify the cost of E5, organizations should retire their redundant voice systems and activate Teams Phone.

With Teams Phone, users can make and receive calls directly in Teams, eliminating the need for a separate business phone app or desk phone system. CIOs can consolidate conferencing and calling onto a single platform: the same Teams application used for chat and meetings now handles telephony. This consolidation offers several benefits:

  • Cost Savings: By using the phone system included in E5, you avoid the additional ~$8โ€“$15 per user per month that a third-party VoIP or PBX service might cost. Over hundreds or thousands of users, this is a significant reduction in IT spend.
  • Simplified Infrastructure: Thereโ€™s no need to maintain on-premises PBX hardware or manage multiple voice vendors. All call management, voicemail, and conferencing can be handled through Microsoftโ€™s cloud.
  • Integrated Collaboration: Employees have one app for messaging, meetings, and calls. Features such as click-to-dial from Outlook contacts, voicemail transcription, and seamless call transfer between devices are built-in.
  • Reduced Redundancy: Every unused E5 feature is essentially a sunk cost. Activating Teams Phone ensures youโ€™re not leaving one of E5โ€™s most valuable features on the table.

Real-world example: A global firm with 2,000 users found that by enabling Teams Phone (included in E5) and phasing out its separate PBX contract, it saved over 20% on annual telephony costs.

Moreover, it simplified the user experience by unifying communications. The lesson: if you have E5, leverage its voice capabilities rather than paying for another vendorโ€™s phone system.

In many cases, the challenges of migration (such as number porting and user training) are quickly outweighed by the cost justification and streamlined operations.

Read Microsoft 365 E3 vs. E5 vs. F3: Choosing the Right SKU for Enterprise Users.

Unifying Security with the E5 Defender Suite

Security is another domain where E5โ€™s included features can replace numerous add-ons.

Organizations often layer multiple security products โ€“ an endpoint protection solution from Vendor A, an email filter from Vendor B, a cloud app security broker from Vendor C, and so on.

Microsoft 365 E5 offers an integrated Microsoft 365 Defender suite covering these needs under one umbrella.

Fully utilizing these tools can justify the E5 license by eliminating separate security subscriptions:

  • Endpoint Protection (EDR): With E5, Microsoft Defender for Endpoint (Plan 2) is included, providing advanced endpoint detection and response. Companies can potentially drop third-party endpoint security licenses (which might cost ~$5โ€“$10/user/month) if Defender meets their needs.
  • Email Security: Defender for Office 365 (Plan 2) provides phishing and malware protection, safe links and attachments, and attack simulation training. Organizations using a third-party secure email gateway or anti-spam service can assess using Microsoftโ€™s built-in solution instead. This not only saves licensing fees but also simplifies email flow (no complex routing through external gateways).
  • Identity and Access: E5 includes Azure AD Premium P2, which brings advanced identity protection features (like risk-based Conditional Access and Privileged Identity Management). This can remove the need for separate identity governance tools or MFA add-ons. It also means a more streamlined single identity platform for your organization.
  • Cloud App Security: Microsoft Defender for Cloud Apps (CASB functionality) comes with E5. Suppose youโ€™re paying for a separate CASB to monitor SaaS usage and shadow IT. In that case, you can potentially retire it and use Microsoftโ€™s solution to discover cloud app usage and enforce policies.

Integration and โ€œGood Enoughโ€ Security: While individual third-party security tools may offer niche advantages, the E5 Defender suiteโ€™s strength lies in its integration and breadth.

All components share signals and a unified dashboard (via Microsoft 365 Defender portal), which can reduce alert fatigue and administrative overhead.

For example, an attempted attack identified on an endpoint can automatically trigger user risk elevation in Azure AD โ€“ something that is challenging to achieve when using disjointed tools from different vendors.

Many enterprises find that Microsoftโ€™s bundled security is โ€œgood enoughโ€ across the board, especially given the benefit of having fewer consoles and contracts to manage.

Additionally, consolidating on Microsoft can sometimes improve security by closing gaps between systems and ensuring consistent policies.

From a cost perspective, replacing even two or three third-party security subscriptions with E5โ€™s built-ins can equal or exceed the incremental cost of E5. Itโ€™s a clear area where using the included features drives ROI.

However, to see these benefits, the IT team must actively deploy and tune the E5 security tools โ€“ simply owning E5 licenses isnโ€™t enough.

Security leaders should plan migrations (for instance, pilot Defender for Endpoint on a subset of machines, compare it against the existing EDR, and then expand deployment while phasing out the old tool).

Leveraging Built-in Analytics and BI Tools

Data analytics and business intelligence are additional areas where you can derive more value from an E5 subscription.

Microsoft 365 E5 includes Power BI Pro for all licensed users. Power BI Pro (if bought separately) would typically cost about $10 per user per month (and as of 2025, this has increased to roughly $14).

By having it bundled in E5, organizations with analytics needs can save substantially:

  • Enterprise BI Access: All users with E5 can create and share dashboards, reports, and analytics in Power BI without needing a separate Pro license. This can replace or reduce reliance on alternative BI tools or paid add-ons for data visualization.
  • Data-Driven Culture at Lower Cost: If your company planned to enable self-service BI for a broad user base, the cost would add up quickly at $10-$14 per user each month on a lower-tier license. E5โ€™s inclusion means those costs are already covered. For a company with 500 analysts or power users, thatโ€™s roughly $5,000โ€“$7,000 in value per month included in E5.
  • Avoiding Redundant BI Platforms: Some organizations run multiple BI platforms (for example, maintaining licenses for Tableau or Qlik alongside Microsoftโ€™s tools). If Power BI Pro is included in your E5, it may be strategic to standardize on Power BI for most use cases and reduce the other expensive BI software contracts. The result is not only license savings but also more uniform toolsets for your teams (reducing training and support efforts).
  • Integrated Analytics Security: Since Power BI integrates with Azure AD and the Microsoft stack, using the included Power BI can simplify security and compliance (e.g., leveraging the same sensitivity labels and data permissions from Microsoft 365). This avoids complexities that can arise when data is exported to third-party analytics platforms.

In short, take advantage of the analytics power youโ€™re already paying for in E5.

If your users arenโ€™t utilizing Power BI Pro because they donโ€™t realize itโ€™s available, make it part of your E5 rollout communication and training.

Often, surfacing one or two quick-win use cases (such as a dashboard for executive KPIs or real-time project metrics) can spark wider adoption of Power BI, ensuring that a portion of your E5 investment is put to work.

Advanced Compliance and Governance Features

For organizations in regulated industries or those with heavy eDiscovery and data governance demands, Microsoft 365 E5โ€™s compliance features can replace several specialized tools or add-ons.

E5 effectively unlocks the full Microsoft Purview compliance suite:

  • Advanced eDiscovery & Audit: E5 allows use of Advanced eDiscovery (with features like case management, deeper analytics, hold notifications, etc.) and longer audit log retention. Companies that might otherwise pay for a separate eDiscovery platform or litigation support tool can use whatโ€™s built into Microsoft 365. This is particularly relevant for legal and compliance teams handling litigation or investigations โ€“ they can work within the Microsoft 365 environment to search and export content, rather than maintaining a costly third-party eDiscovery service.
  • Data Loss Prevention (DLP) and Information Protection: The E5 tier supports advanced DLP policies across endpoints, email, and cloud applications, as well as the auto-classification of sensitive data using machine learning. If youโ€™re considering a standalone DLP suite or data classification tool, check if the E5 capabilities meet your needs first. Often, Microsoftโ€™s built-in DLP can meet common requirements (e.g., preventing credit card numbers or personal data from leaving the organization) without requiring additional software. Azure Information Protection P2 is also included, enabling the automated encryption and labeling of sensitive files โ€“ a feature that might otherwise require separate encryption software.
  • Insider Risk Management and Compliance Monitoring: E5 provides tools for detecting insider risk (utilizing user behavior analytics to flag suspicious activity) and offers comprehensive compliance dashboards. These can negate the need for certain insider threat monitoring tools or custom scripts.
  • Customer Key and Lockbox, Privileged Access Management: For extremely sensitive scenarios, E5 offers Customer Lockbox (giving you control over Microsoft support access to your content) and privileged access management for Office 365. Without E5, organizations sometimes purchase niche add-ons or services to bolster admin access security โ€“ E5 already has an answer for that.

By utilizing the compliance features included in E5, enterprises can avoid purchasing one-off solutions for archiving, DLP, or monitoring.

There is also a potential indirect cost saving: having a unified compliance platform means fewer integrations and less complexity when enforcing policies across your data.

For example, the same sensitivity label policy can be applied across SharePoint, Exchange, and Teams chats through Microsoft Purview. In contrast, a third-party DLP might only cover one domain and require separate integration efforts for others.

However, itโ€™s important to align E5โ€™s compliance tools with your specific requirements.

If your industry uses a specialized eDiscovery system or has regulators mandating a particular solution, youโ€™ll need to verify that Microsoftโ€™s tools are accepted.

In many cases, though, leveraging what you already own in E5 is both cost-effective and operationally efficient for compliance needs.

Cost Comparison: E5 vs. E3 with Add-Ons

How do these inclusions translate to dollars? Justifying the E5 license often comes down to running the numbers.

While exact pricing can vary by enterprise agreement and region, Microsoft 365 E5 typically costs approximately $57 per user per month, compared to around $36 per user for Microsoft 365 E3 (the base enterprise license).

At first glance, E5 is about $21 more per user. The question for IT leaders is: can using E5โ€™s extra features save at least that $21 (or more) per user elsewhere in the IT budget?

In many cases, the answer is yes. Consider the following simplified comparison:

Licensing ApproachMicrosoft Licensing CostThird-Party Add-on CostsEstimated Total Cost/User
E3 + Separate SolutionsM365 E3 license โ€“ approx. $36/user/month+ Voice system ($10) <br> + Security tools ($10)
+ BI/Analytics tool (~$10)
~$66 per user/month
E5 All-InclusiveM365 E5 license โ€“ approx. $57/user/month+ No extra add-on licenses needed (using included Teams Phone, security, BI)$57 per user/month

Table: Illustrative cost scenario per user โ€“ An organization on E3 might spend an additional $30 or more on various add-ons and third-party products, bringing the total to $66 in this example.

By moving to E5 and utilizing its built-in capabilities, that cost can drop to $57 while delivering a more comprehensive solution. (Note: Actual prices and needed add-ons vary. This example assumes a phone system, security suite, and BI tool were required on top of E3.)

Beyond license prices, there are also soft costs to consider in this comparison: the operational overhead of managing multiple vendors, the integration effort required to make disparate tools work together, and potential security risks associated with gaps between systems. E5โ€™s value includes those efficiencies.

For instance, the time saved by IT staff in managing a single integrated platform might not be reflected on a price sheet, but it does impact the total cost of ownership.

Additionally, organizations can often negotiate better pricing for E5 when they commit to broad adoption. Vendors (Microsoft included) may offer enterprise-wide discounts or incentives if you agree to retire competing products and fully embrace their suite.

For example, if youโ€™re consolidating dozens of tools into the Microsoft stack, bring that up in your Microsoft Enterprise Agreement negotiations โ€“ you may secure more favorable terms or credits that further improve the cost equation.

Itโ€™s also worth noting the risk of underutilization: if you pay for E5 and donโ€™t use these features, the cost justification evaporates.

Studies have found that a significant percentage of E5 licenses in large organizations are either unassigned or only used at E3-level capacity.

This is essentially wasted spend. Avoid this by right-sizing licenses (downgrade some users to E3 if they truly donโ€™t need E5 capabilities) and by driving adoption for those that remain on E5.

Recommendations

To make the most of an E5 investment and ensure itโ€™s financially justified, consider the following actions:

  • Map Features to Needs: Inventory all third-party solutions and add-ons in your environment (e.g., phone systems, security tools, analytics) and map them to equivalent features in E5. Identify which can be turned off or not renewed because E5 already provides that function.
  • Retire Redundant Tools: Commit to phasing out overlapping services. For example, if you enable Teams Phone, plan to decommission the old PBX or voice provider contract. Avoid paying two vendors for the same capability.
  • Pilot and Deploy Included Services: Donโ€™t just buy E5โ€”deploy it. Run pilots for Defender security tools, set up a few Power BI reports, and activate compliance features for a test group. Prove the functionality in real-world scenarios, then expand its usage across the organization. This builds confidence in replacing legacy tools.
  • Train and Communicate: Underutilization often happens simply because users or admins arenโ€™t familiar with the new tools. Provide training for IT staff on E5โ€™s advanced features (how to manage Teams Phone, interpret Defender alerts, use eDiscovery, etc.), and awareness for end-users on new capabilities (like Power BI or Teams call features). A well-informed team will utilize the available tools.
  • Leverage Microsoft Support and Funding: Microsoft and its partners often offer funding programs, workshops, or deployment assistance for E5 capabilities (e.g., Microsoft-led proof-of-concept engagements for Defender or compliance). Take advantage of these to accelerate adoption at little to no extra cost.
  • Use Analytics to Track Usage: Continuously monitor utilization of E5 features through the admin center reports or a license management tool. Ensure that expensive E5 seats arenโ€™t sitting idle. If certain departments arenโ€™t using their E5 features, find out why โ€“ maybe they need more training, or maybe they should be moved to a cheaper license.
  • Consider Partial Deployment: Not everyone in the company may need E5. An effective strategy is to license a core group on E5 (who will utilize the full feature set, e.g., IT, security team, power users) and keep others on E3 or F3 as needed. This targeted approach maximizes ROI by allocating E5 where it delivers the most value.
  • Plan for Change Management: Consolidating under E5 can mean significant change (new workflows in Teams, new security processes, etc.). Manage this change with executive sponsorship and clear communication of the benefits (for instance, explain to the telecom team that moving to Teams Phone will modernize the experience and save money, rather than simply mandating a tool switch).
  • Negotiate with Value in Mind: During renewal or procurement, highlight to Microsoft the extent of your E5 usage plans. If you are eliminating third-party solutions in favor of Microsoft, use that as leverage to negotiate better pricing or concessions. Microsoftโ€™s representatives are eager to have customers adopt the full suite, and they may offer discounts or additional benefits that enhance your cost justification.
  • Regularly reassess: Technology and business needs evolve. Schedule a yearly (or even quarterly) review of your E5 utilization and the external services youโ€™re still paying for. New features may be added to Microsoft 365 over time that could enable further consolidation. Likewise, if some E5 components arenโ€™t delivering value, reconsider if you need to keep those users on E5. Constant alignment between E5 capabilities and your IT strategy ensures youโ€™re always getting what you pay for.

FAQ

Q1: Our organization is on E3 with several add-ons. How do we determine if upgrading to E5 is worthwhile?
A: Start by totaling the costs of your add-ons and third-party tools that E5 could replace (such as phone system licenses, advanced security subscriptions, Power BI, etc.). If the combined cost of E3 and these extras is close to or higher than E5, thatโ€™s a strong financial argument for upgrading. Additionally, consider the intangible benefits of E5 โ€“ fewer vendors to manage, improved integration, and enhanced security posture. If you need at least two or three of the E5-exclusive features, it often tips the scales in favor of E5. However, if you only require one minor feature, you might opt to purchase just that add-on instead of a full E5 license. Perform a feature-by-feature gap analysis and ROI calculation to make an informed decision.

Q2: We have E5 licenses, but we are still using a third-party PBX for making calls. Is it that important to switch to Teams Phone?
A: If youโ€™ve already paid for E5, not using Teams Phone means youโ€™re forgoing a capability thatโ€™s included, likely paying a separate provider for something you own. Switching to Teams Phone can usually save money (by eliminating the other PBX service and its maintenance costs) and simplify user experience (one platform for all communication). It is essential to evaluate feature parity to ensure Teams Phone meets your requirements for call queues, emergency calling, international dial plans, and other key features. In most cases, Microsoftโ€™s telephony has matured enough to replace traditional systems for many scenarios. The key is planning the migration carefully (porting numbers, training users on the new system). If you address the transition challenges, enabling Teams Phone will allow you to reap the ROI from your E5 licenses and avoid double-paying for voice.

Q3: Are Microsoftโ€™s built-in security tools in E5 as effective as specialized third-party products?
A: Microsoftโ€™s E5 security suite is considered enterprise-grade and continues to improve rapidly, but โ€œeffectiveโ€ can depend on your specific requirements. In many organizations, the Defender suite in E5 provides comprehensive coverage: endpoint detection and response, threat intelligence, cloud app control, and more โ€“ all integrated. Specialized vendors might still lead in certain niches (for example, some organizations prefer a dedicated endpoint solution or an advanced email filter for very specific threats). However, for the majority of scenarios, E5โ€™s security tools are more than sufficient and offer the big advantage of native integration. Itโ€™s often a case of 90% of the capability at a much lower marginal cost (since itโ€™s included). We recommend piloting the E5 tools in parallel with your existing ones and comparing results. You may find Microsoft catches most issues just as well. Even if you keep a specific third-party tool for a unique need, you can likely eliminate others and streamline the rest under E5.

Q4: What if we buy E5 and some features end up unused? How do we avoid wasting money?
A: The best approach is proactive license management and user adoption efforts. Before buying E5 for everyone, identify who needs the advanced features. You might adopt a mix of licenses (E5 for some, E3 for others) as a precaution against underutilization. Once E5 is deployed, track usage metrics via admin reports or a tool like CoreView โ€“ this can show you which users havenโ€™t touched, say, Power BI or Teams Phone. With that insight, you can take action: provide additional training to those users, or if itโ€™s clear they donโ€™t need E5 capabilities, consider downgrading their license at renewal. Another strategy is to phase the rollout of features โ€“ for instance, enabling security features and gaining buy-in, then later enabling compliance features โ€“ so as not to overwhelm teams. Finally, hold vendors (or internal project owners) accountable for adoption: if you invested in E5, have a roadmap for when each major feature will be implemented in your environment. Regularly reviewing this roadmap ensures the purchase translates into actual value.

Q5: Can we mix E5 and lower-tier licenses in our organization to control costs?
A: Absolutely. Microsoft allows you to assign different license types to different users. Many enterprises take a tiered approach: key users or departments that need full functionality get E5, while other staff remain on E3 or even F3 (Frontline) if they have basic needs. For example, your IT security team, compliance officers, and analytics teams might all be assigned E5 to utilize the advanced tools. In contrast, a standard office worker who primarily uses email and Office applications could remain on E3. This hybrid licensing can significantly reduce costs while still providing the benefits of E5 where they matter most. Just be mindful that some features (especially compliance features like eDiscovery) are user-centric, meaning if even one user is under E3, certain advanced compliance actions on that userโ€™s data might not be allowed under licensing rules. So you may need to license a small group fully if their data is involved in an advanced feature. But overall, mixing license levels is a common and effective strategy.

Q6: Weโ€™re concerned about the complexity of switching to Microsoftโ€™s tools (phone system, security, etc.). How can we mitigate the risk when replacing third-party solutions?
A: Transitioning to new tools does require planning, but there are ways to mitigate risks. First, utilize pilot programs and proof-of-concepts: you can run Teams Phone for a single department or set up Defender for Endpoint on a subset of devices while still keeping the old system running as a safety net during evaluation. This parallel run approach lets you validate functionality and performance before a full cutover. Second, take advantage of Microsoftโ€™s FastTrack services or partner expertise โ€“ Microsoft provides deployment assistance for customers with eligible plans, and experienced partners can help with complex migrations (like voice). Third, break the project into phases (e.g., migrate one office location at a time to Teams Phone, rather than doing it all at once). By gradually rolling out, you can learn and adapt as you go. Finally, ensure you have executive backing and clear communication to users about the changes. When users understand the โ€œwhyโ€ (for example, โ€œweโ€™re consolidating tools to save costs and improve security โ€“ hereโ€™s whatโ€™s changing for youโ€), theyโ€™re generally more cooperative, reducing resistance and smoothing the switchover.

Q7: How does an E5-heavy strategy impact vendor management and contracts?
A: Consolidating under E5 will reduce the number of vendors and contracts you deal with for IT solutions, which can be a benefit. Instead of juggling renewals and relationships with, say, separate providers for email security, conferencing, identity management, and so on, you channel more through your Microsoft agreement. This can streamline procurement and vendor risk management โ€“ fewer contracts to negotiate and fewer third-party assessments needed. It can also increase your leverage with Microsoft since youโ€™re investing more heavily in their ecosystem (which, as mentioned, might translate to better discounts or support). However, a risk is putting too many eggs in one basket: you become more dependent on Microsoft. Be sure to negotiate strong contractual terms with them, such as locking in pricing and ensuring you have flexibility to adjust license counts over time. Also, maintain an exit strategy for critical workloads (for instance, backups of data, or a plan to revert to another tool if necessary) to avoid over-reliance. In summary, an E5-centric approach simplifies multi-vendor management, but it elevates the importance of your Microsoft relationship, so manage that one well.

Q8: Are there any hidden costs with using E5โ€™s included features (for example, does Teams Phone require extra purchases)?
A: Most features weโ€™ve discussed are included in the E5 license, but there can be additional costs depending on how you use them. For instance, Teams Phone includes the phone system capability. Still, suppose you want to enable PSTN calling through Microsoftโ€™s telephony. In that case, you might need to buy calling plan minutes or use a third-party telephony carrier (via Direct Routing or Operator Connect). These calling costs are analogous to your phone bill โ€“ theyโ€™re outside the E5 license itself. Similarly, if you heavily utilize certain security features, you may incur fees (for example, logging advanced data to Microsoft Sentinel or storing large audit logs can result in Azure costs). Power BI Pro is included, but if you move to Power BI Premium for larger-scale analytics, thatโ€™s an add-on cost. The key is to differentiate between platform features (which are included) and consumption-based services (which may not be). In most normal use cases, the included features wonโ€™t require additional licensing spend โ€“ just be aware of usage-based costs (such as telecom charges and extra storage) as you plan. Overall, these โ€œhiddenโ€ costs are usually minor compared to the expense of having entirely separate systems; just budget for them and factor them into the ROI analysis.

Q9: How can we measure the ROI after moving to E5 and utilizing its features?
A: To quantify ROI, you should track both cost savings and value gains post-E5 adoption. On the cost side, document every external license or service you eliminated because of E5 โ€“ for example, the dollar value of the discontinued video conferencing subscription, the endpoint security contract you didnโ€™t renew, or the legacy phone system maintenance that went away. Sum those savings over a year; thatโ€™s a direct reduction in IT spend attributable to E5. Next, consider productivity and risk benefits: did helpdesk tickets drop because users have a more unified toolset? Did incident response improve due to integrated security alerts (potentially avoiding costly breaches)? These can be quantified by metrics such as time saved or incidents avoided and translated into financial terms (e.g., hours saved multiplied by labor cost, or avoided breach cost estimates). Many organizations also examine utilization metrics โ€“ for instance, if 90% of users regularly use a new E5 feature, that indicates a high adoption rate and therefore value derived. Microsoft offers ROI calculators and Forrester Total Economic Impact study data that you can tailor to your specific situation. Ultimately, ROI will show up as a combination of lower IT operating costs (fewer vendors, fewer overlapping licenses) and improved outcomes (better security, faster insights, etc.). Keep a dashboard or report that you update quarterly post-implementation to show these benefits โ€“ this helps communicate to executives that the move to E5 was worthwhile.

Q10: What are the biggest pitfalls to avoid when justifying and implementing E5?
A: A few common pitfalls: (1) Buying E5 for everyone without a plan โ€“ donโ€™t assume value will automatically come; you need a deployment roadmap to turn on and use the features. (2) Not turning off the old systems โ€“ sometimes companies continue to pay for legacy tools โ€œjust in caseโ€ or due to internal politics, and thus never realize the cost savings. Itโ€™s essential to include decommissioning milestones in your project plan to effectively capture savings. (3) Underestimating change management โ€“ users may be accustomed to certain apps (such as a specific phone or security interface). Without proper training and support, they might resist using the E5-provided tool, leading to underuse. Invest in user adoption efforts. (4) License sprawl โ€“ ironically, some firms add E5 but fail to optimize their existing licenses, resulting in both E3 and E5 being in excess. Conduct a license audit to remove or reassign redundant licenses. (5) Ignoring feature fit โ€“ ensure that the E5 features meet your requirements; if thereโ€™s a critical gap (say E5โ€™s phone system lacks a niche feature your call center needs), address that (via an add-on or alternate solution for that group) rather than forcing an inadequate solution or keeping an entire third-party platform for one need. In summary, avoid a hasty upgrade without an execution strategy. Plan, implement, and follow through on retiring overlap โ€“ this is how E5โ€™s promised value is realized.

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  • Fredrik Filipsson

    Fredrik Filipsson is the co-founder of Redress Compliance, a leading independent advisory firm specializing in Oracle, Microsoft, SAP, IBM, and Salesforce licensing. With over 20 years of experience in software licensing and contract negotiations, Fredrik has helped hundreds of organizationsโ€”including numerous Fortune 500 companiesโ€”optimize costs, avoid compliance risks, and secure favorable terms with major software vendors. Fredrik built his expertise over two decades working directly for IBM, SAP, and Oracle, where he gained in-depth knowledge of their licensing programs and sales practices. For the past 11 years, he has worked as a consultant, advising global enterprises on complex licensing challenges and large-scale contract negotiations.

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