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Guide · Microsoft · Security

Microsoft security licensing, unbundled. You do not always need E5.

Microsoft security capability is available without a full E5 upgrade. This guide shows how Defender, Entra, and Purview license standalone, and where unbundling beats the E5 premium.

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Microsoft security capability is sold both inside E5 and as standalone products, so a full E5 upgrade is one path to coverage, not the only one.

Defender, Entra, and Purview can each be licensed on their own.

This guide shows the standalone paths, and where unbundling beats paying the full E5 premium for capability you do not all need.

Key takeaways

Security without the full bundle

  • Microsoft security spans three families, Defender, Entra, and Purview.
  • Each family has standalone SKUs that do not require a full E5 upgrade.
  • E5 bundles the top tier of all three, which is efficient only if you use all three.
  • Unbundling fits estates that need strong endpoint security but light compliance, or the reverse.
  • A per seat coverage map beats a blanket E5 decision for a mixed workforce.
  • Price the standalone stack against the E5 premium before committing either way.

What are the Microsoft security product families?

Microsoft security splits into three families. Defender protects endpoints, identity, email, and cloud apps. Entra governs identity and access. Purview covers data security and compliance.

The combined platform is described on the Microsoft 365 E5 Security page, with technical depth in the Defender XDR documentation.

The three families

  • Defender: endpoint, identity, Office 365, and cloud app protection.
  • Entra: identity, conditional access, and identity governance.
  • Purview: information protection, data loss prevention, and eDiscovery.

Why bundling can mislead

E5 includes the top tier of all three. That is efficient only when an estate genuinely uses all three. Many use one heavily and the others barely.

How do the standalone security paths work?

Each family sells outside E5. You can buy Defender for Endpoint Plan 2, Entra ID P2, or Purview capabilities as discrete SKUs and attach them to E3 seats.

Standalone security building blocks against the E5 bundle

Need Standalone path Inside E5
Endpoint detectionDefender for Endpoint P2Yes
Identity protectionEntra ID P2Yes
Email securityDefender for Office 365 P2Yes
Compliance and DLPPurview standaloneYes

The identity layer

Entra is often the right first standalone buy. The capabilities and tiers are on the Microsoft Entra page, and the compliance scope sits in the Microsoft Purview documentation.

Should you buy E5 or unbundle?

The decision is a coverage map, not a single answer. Count how many of the three families each seat truly needs.

When E5 wins

  • All three in use: the seat needs Defender, Entra, and Purview together.
  • Compliance heavy: regulated roles using the full Purview stack.
  • Administrative simplicity: where the unbundled premium is small.

When unbundling wins

Unbundling wins when a seat needs one family strongly and the others barely. Pay for the capability the role uses, not the two thirds of E5 it will not.

Where the common advice on Microsoft security licensing is wrong

The common advice, often from the account team, is that E5 is the simplest and cheapest way to secure the estate. We disagree. In roughly 24 of the 30 reviews we ran, the customer used one security family heavily and barely touched the other two, so the E5 premium paid for shelfware. The buyer side move is to build a per seat coverage map across Defender, Entra, and Purview, then license each role for what it actually needs. E5 is the right answer only when a seat genuinely uses all three families. Buying it for one and ignoring the rest is convenience priced as security.

Editorial photograph of a security team mapping endpoint, identity, and data controls across user roles
A per seat coverage map across the three security families, not a blanket bundle, is what right sizes Microsoft security spend.

What to do next

  1. Map each seat against the three families, Defender, Entra, and Purview.
  2. Mark which family each role uses heavily and which barely.
  3. Price standalone Defender, Entra, and Purview SKUs for the single family roles.
  4. Compare the standalone stack to the E5 premium per seat.
  5. Reserve E5 for seats that genuinely use all three families.
  6. Attach standalone SKUs to E3 seats for the rest.
  7. Validate prerequisites and use rights against the Microsoft Product Terms.

Frequently asked questions

Do you need E5 for Microsoft security?

No. Microsoft security capability is sold both inside E5 and as standalone Defender, Entra, and Purview products. A full E5 upgrade is one path to coverage, not the only one.

What are the three Microsoft security families?

Defender protects endpoints, identity, email, and cloud apps. Entra governs identity and access. Purview covers data security and compliance. E5 bundles the top tier of all three.

When is standalone security cheaper than E5?

Unbundling is cheaper when a seat needs one family strongly and the others barely. You pay for the capability the role uses rather than the two thirds of E5 it will not.

Can I add Defender to E3 without E5?

Yes. Defender for Endpoint Plan 2 and Defender for Office 365 Plan 2 sell standalone and attach to E3 seats, raising security without a full E5 upgrade.

What is Microsoft Entra ID P2?

Entra ID P2 is the advanced identity protection and governance tier. It is included in E5 and also sells standalone, and is often the right first unbundled security buy.

When does E5 win over unbundling?

E5 wins when a seat genuinely uses all three families, for compliance heavy regulated roles, or where the unbundled premium is small enough that simplicity is worth it.

How do I decide between E5 and standalone security?

Build a per seat coverage map across the three families, then license each role for what it uses. Compare the standalone stack to the E5 premium before committing either way.

Does unbundling create compliance gaps?

Only if the coverage map is incomplete. Map every role to the families it needs and validate use rights against the Microsoft Product Terms to avoid gaps.

Map your Microsoft security coverage in under five minutes.
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3
Microsoft security families
30
Security reviews run
30%
Median saving from unbundling

Source: Redress Compliance advisory engagement file, 2024 to 2025.

E5 is the right answer only when a seat genuinely uses all three families.

Morten Andersen
Co Founder, Redress Compliance
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