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Microsoft 365 E5 Security Add-On: E5 Security Without the E5 Price Tag

July 1, 2025
By Rebecca Spoont

Upgrading to a full Microsoft 365 E5 license feels like overkill for a lot of organizations. Both from a features and cost perspective. Microsoft’s answer to this? Microsoft 365 E5 Security.

Microsoft 365 E5 Security is an add-on to Microsoft 365 Business Premium, Microsoft 365 E3, and Office 365 E3. It provides advanced security features without paying for the full Microsoft 365 E5.

Let’s break down how it works, what’s included, and how to decide if it’s the right fit for your organization.

What Is Microsoft 365 E5 Security?

The Microsoft 365 E5 Security add-on is a bundle of Microsoft’s advanced security tools. Instead of paying for the full Microsoft 365 E5 Suite, you gain access to many of those security features for a fraction of the cost.

Who qualifies for Microsoft 365 E5 Security?

To be eligible for the Microsoft 365 E5 Security add-on you must have one of the required licenses:

  • Microsoft 365 E3
  • Office 365 E3
  • Microsoft 365 Business Premium (Including Business Premium Charity and Nonprofit)

Is Microsoft 365 E5 Security the Same as Microsoft 365 E5?

No. Microsoft 365 E5 is a standalone license, whereas Microsoft 365 E5 Security is just the security portion packaged as an add-on to qualifying licensing. With the full Microsoft 365 E5 license, you get a boost across the full suite of Microsoft 365 solutions − security, compliance, collaboration, and data.

Here’s a high-level look at the security and compliance differences between Microsoft 365 E5 Security versus Microsoft 365 E5.

Feature Area E5 Security Add-On Microsoft 365 E5 (Full Suite)
Threat Protection Includes Microsoft Defender for Endpoint Plan 2, Defender for Office 365 Plan 2, Defender for Cloud Apps, App Governance, Defender for Identity, Defender for IoT – eIOT Same as E5 Security Add-On
Identity & Access Management Includes Microsoft Entra ID P2 (formerly Azure AD Premium P2) Same as E5 Security Add-On
Information Protection Not included Includes Microsoft Purview Information Protection, DLP, and auto-labeling
Insider Risk Management Not included Includes Insider Risk Management and Communication Compliance
Compliance & Data Governance Not included Includes Advanced eDiscovery, Advanced Audit, and Records Management
Security Management Includes Secure Score, Access Reviews, Security Baselines, Risk-based Conditional Access Policies, Privileged Identity Management Same as E5 Security Add-On

Want to learn more about Microsoft 365 licensing?
Check out our breakdown comparing

Microsoft 365 E3 vs. Microsoft 365 E5

How Much Does Microsoft 365 E5 Security Cost?

You’re probably thinking, “is Microsoft 365 E5 Security worth the cost?” E5 Security includes $28.20 worth of individual licenses for $12/user/month. Saving you around 57%.

But the savings go deeper than licensing.

By consolidating your security stack within the Microsoft ecosystem, you reduce the time, complexity, and administrative overhead of managing multiple point security solutions. That means:

  • Fewer vendors to evaluate and renew
  • Fewer contracts to negotiate and track
  • No more piecing together alerts from siloed tools

When tools are integrated with E5 Security, your team has centralized visibility, faster detection and response, and automated workflows. That leads to reduced risk, minimized downtime, and less damage if an incident does occur.

What’s Included in the Microsoft 365 E5 Security Add-On?

Here’s what you get with the E5 Security bundle:

Identity and Access Controls: Microsoft Entra ID Plan 2

  • Risk-based conditional access and real-time dynamic user and sign-in assessment
  • Identity protection using advanced machine learning to identify risky sign-ins, compromised accounts, and insider threats
  • Granular control over privileged accounts with automated elevation and access reviews

Identity Protection: Microsoft Defender for Identity

  • Threat and suspicious user activity detection across identities and infrastructure
  • Built-in response and automated playbooks for quick threat mitigation
  • Context-rich identity insights during incident investigations—like recent events, activities and risk scoring
  • Tailored configuration vulnerabilities and attack path modeling

Device Security: Microsoft Defender for Endpoint Plan 2

  • Antimalware, cyberattack surface reduction, and device-based conditional access
  • Comprehensive endpoint detection and response (EDR)
  • Advanced hunting with support for custom detections
  • Attack surface reduction capabilities powered by Secure Score

Collaboration & Email Security: Microsoft Defender for Office 365 Plan 2

  • Protection against advanced attacks like phishing and malware
  • Protection beyond email to Microsoft Teams, OneDrive and SharePoint
  • AI and automation to investigate, analyze, and respond to email threats
  • Cyberattack simulation training and detailed reporting

SaaS Security: Microsoft Defender for Cloud Apps

  • Visibility into “Shadow IT” by discovering apps in use
  • SaaS app security posture that uncovers configuration gaps and offers recommendations
  • OAuth-enabled and line of business app monitoring, governance and protection

Enterprise IoT (Internet of Things) Security: Microsoft Defender for IoT

  • Insight into IoT devices in corporate environments (printers, cameras, proprietary devices)
  • Uncover hidden vulnerabilities on your IoT assets
  • Provide the missing pieces in your organization’s asset inventory

How ProArch Can Help You Get the Most from Microsoft 365 E5 Security

Choosing the right Microsoft security licensing is just the beginning. You need a partner who can configure, optimize, and actively manage your environment.

That’s where ProArch comes in. As a top Microsoft Partner and proud member of the Microsoft Intelligent Security Association (MISA), we help you:

Ready to take your security to the next level without paying full E5 price?

Contact us to talk Microsoft 365 E5 Security.

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