E5 Security carries Defender for Endpoint Plan 2, Defender for Identity, Defender for Cloud Apps, Defender for Office 365 Plan 2, and Entra ID P2. The premium over E3 sits around $12 per user per month. The question is whether the bundle pays back.
E5 Security is a bolt on SKU that adds the Microsoft security stack to an E3 base. The bolt on costs around $12 per user per month. The bundle includes Defender for Endpoint Plan 2, Defender for Identity, Defender for Cloud Apps, Defender for Office 365 Plan 2, and Entra ID P2.
The pay back depends on whether the customer already buys point security products. If yes, the bundle often replaces three or four contracts and pays back inside year one. If no, the buyer side response is to stay on E3 and adopt selectively.
Read this alongside the E3 vs E5 decision framework, the Microsoft knowledge hub, the Microsoft advisory practice, and the Vendor Shield subscription.
The E5 Security bolt on is a fixed bundle. The five included products each carry a per user per month list price when bought standalone. The bundle math is the sum of the five against the bolt on price.
| Product | Standalone list per user per month | Buyer side typical net |
|---|---|---|
| Defender for Endpoint Plan 2 | $5.20 | $3.80 to $4.50 |
| Defender for Identity | $5.50 | $4.00 to $4.80 |
| Defender for Cloud Apps | $5.00 | $3.80 to $4.50 |
| Defender for Office 365 Plan 2 | $5.00 | $3.80 to $4.50 |
| Entra ID P2 | $9.00 | $6.50 to $8.00 |
| Sum standalone | $29.70 | $21.90 to $26.30 |
| E5 Security bolt on | $12.00 | $9.00 to $11.00 |
The base E3 license already carries some security features. The marginal value of E5 Security sits in the gap. The gap is sometimes small. The gap is sometimes very large.
| Capability | E3 base | E5 Security adds | Buyer relevance |
|---|---|---|---|
| Endpoint protection | Defender AV only | EDR, threat hunting, automated investigation | High for regulated and finance |
| Identity threat detection | Limited Entra signals | Active Directory hybrid signals, PIM, Identity Protection | High for hybrid AD shops |
| SaaS visibility | None | Discovery, policy, session controls | High for shadow IT mature |
| Email threat protection | Exchange Online Protection | Safe Links, Safe Attachments, attack simulation | High when phishing risk is top of stack |
| Privileged access | None | PIM with just in time roles | High in regulated industries |
The break even point is the number of displaced third party tools that makes E5 Security cheaper than the status quo. Three displaced tools usually clears the bar. Two rarely does.
| Line item | Status quo | E5 Security path | Net per user per month |
|---|---|---|---|
| E3 base | $36.00 | $36.00 | $0 |
| Third party EDR | $5.50 | 0 | -$5.50 |
| Third party CASB | $4.50 | 0 | -$4.50 |
| Third party email security | $3.00 | 0 | -$3.00 |
| Identity protection point tool | $2.50 | 0 | -$2.50 |
| E5 Security bolt on | 0 | $9.50 | +$9.50 |
| Net | $51.50 | $45.50 | -$6.00 |
E5 Security fits a few common enterprise profiles. The pay back appears inside year one when the profile matches.
E5 Security underperforms in a few common cases. The buyer side response is to stay on E3 plus selective standalones.
The Microsoft security stack rewards activation. Defender for Cloud Apps with zero policies adds no value. Entra ID P2 with no PIM rollout adds no value. The buyer side response is to insert an activation milestone schedule into the contract and tie payment to activation against an agreed adoption curve.
The buyer side does not have to choose between full E5 Security and full status quo. Three alternative paths sit in between.
| Path | Cost per user per month | Best fit |
|---|---|---|
| Full E5 Security across all users | $9 to $11 | Three or more displaced tools |
| E5 Security on admins and execs only | $1 to $2 blended | Targeted privileged access |
| Defender for Endpoint P2 standalone | $3.80 to $4.50 | EDR only |
| Defender for Office 365 P2 plus Entra ID P2 | $10.30 to $12.50 | Phishing and privileged access |
E5 Security wins when three or more point security products disappear. It loses when only one disappears. The buyer side response is to count the displaced contracts before signing.
The eight step checklist is the buyer side starting position on every E5 Security decision.
The list price runs around $12 per user per month. Enterprise Agreement discounts typically move the effective price to $9 to $11 per user per month. The Microsoft Customer Agreement Enterprise carries a similar net price when negotiated with discipline.
The standalone sum runs $29 to $30 per user per month at list. The E5 Security bolt on at $12 is roughly forty percent of the standalone sum. The bolt on is the cheaper path when at least three of the five products are needed.
No. E5 Security is an enterprise bolt on. Microsoft 365 Business Premium carries a different security stack that broadly maps to Defender for Endpoint Plan 1 and Defender for Office 365 Plan 1. The break even math for Business customers needs a different model.
Industry data shows roughly forty percent of E5 Security customers reach full activation inside year one. Sixty percent leave one or more products dormant. The buyer side response is to insert an activation schedule into the contract with payment tied to milestones.
Yes. The buyer side typically negotiates ten to twenty percent off the list bolt on price inside an Enterprise Agreement. The discount lever is stronger when the customer commits to two or three years and demonstrates competitive displacement against CrowdStrike, Proofpoint, or Okta.
Redress runs E5 Security evaluations inside Vendor Shield, the Renewal Program, the Benchmark Program, and the Software Spend Assessment. The work covers feature mapping, displacement math, activation schedule design, and the renewal posture. Always buyer side, never Microsoft paid.
Redress runs E5 Security evaluations inside the Vendor Shield subscription, the Renewal Program, the Benchmark Program, and the Software Spend Assessment. Every engagement is led by independent commercial advisors on the buyer side.
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Open the Paper →E5 Security wins when three or more point security products disappear. It loses when only one disappears. The buyer side response is to count the displaced contracts before signing.
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