Microsoft 365 E3 — Pricing, Plans & What’s Included
Enterprise productivity, Windows, device management, and core security for commercial organizations that want a strong Microsoft 365 standard without moving to E5.
Microsoft 365 E3 is the enterprise bundle for organizations that want Microsoft 365 Apps, enterprise email and collaboration, Windows Enterprise E3, Intune, and core identity/security capabilities in one user license.
The plain-English version
Microsoft 365 E3 is a strong default for commercial organizations standardizing on Microsoft for productivity, endpoint management, identity, and baseline security. It is often the right step up from app-only or Office-only plans because it brings the operating system, management layer, and security foundation into the same licensing motion. It is not the right choice if you already know you need E5-grade security, compliance, identity, or analytics across the whole estate.
Who it's for
Choose Microsoft 365 E3 for full-time commercial users who need the desktop Office apps, enterprise email, file collaboration, Teams if selected, managed devices, and stronger identity controls than a basic productivity bundle.
What problem it solves
It helps reduce the sprawl of separate productivity, Windows, device management, and baseline security purchases. For IT, it creates a cleaner standard license to assign, secure, and renew.
How companies usually start
Start by deciding whether you need the Teams-included SKU or the no-Teams SKU, then choose the commitment term that matches your staffing stability. If you need Entra P2 or Defender for Endpoint P2, add those as separate add-ons rather than assuming they are part of base E3.
What an admin gets to work with
Admins assign Microsoft 365 E3 to named users, then manage individual service plans such as apps, Exchange, SharePoint, Teams where applicable, Intune, Windows, and identity-related services from the Microsoft 365 and Entra admin experiences.
Typical deployment pattern
Most organizations pilot with IT and a representative business group, confirm identity and device-management settings, then expand by department. Existing tenants can usually keep their data and configuration while licenses are changed or reassigned.
Cost posture
Annual billing on one-year terms and the listed three-year options are the lowest annualized cost postures for the corresponding SKUs. Annual commitment billed monthly costs more overall but can help cash flow. Monthly commitment gives the most flexibility. Three-year commitment can reduce renewal churn and support longer planning, but it is a poor fit if headcount is uncertain.
What to buy with it
Consider the Entra P2 Add On if you need P2 identity capabilities, and the Defender for Endpoint P2 Add On for Microsoft 365 E3 if you need the P2 endpoint security tier. If you need voice calling, Copilot, backup, or advanced compliance, those are separate buying conversations.
Transferring in
If you already have Microsoft 365 E3 with another provider, a CSP transfer typically focuses on licensing and provider relationship rather than moving mailbox or SharePoint data. IT Partner reviews your current SKUs, renewal dates, and term commitments before placing replacement subscriptions.
What's included — and what isn't
Included
Not included
Choose this plan — or don't
Choose Microsoft 365 E3 if…
- You want one enterprise license for productivity apps, enterprise collaboration, Windows Enterprise E3, device management, and core identity/security.
- You need an enterprise plan rather than a small-business bundle.
- You want a balanced baseline and will add P2 security or identity only for the users who need it.
- You prefer a Commercial CSP subscription with monthly, annual, or three-year commitment choices.
Don’t choose it if…
- You need E5 security, compliance, identity, or analytics for most users from day one.
- You only need Office apps and email, with no need for Windows Enterprise or Intune.
- You need the no-Teams licensing path but accidentally selected the Teams-included SKU.
- You need maximum cancellation flexibility and are considering an annual or three-year commitment.
Common misconceptions
How the commitment works
Commitment & payment options
The Commercial catalog shows P1M billed monthly, P1Y billed annually or monthly, and P3Y billed annually or triennially, with availability depending on the exact base, no-Teams, unattended, or add-on SKU selected.
The cancellation window
Under CSP/NCE purchasing, cancellation and seat reductions are generally limited to Microsoft’s short post-purchase or renewal cancellation window. IT Partner should confirm the exact window before the order is placed.
Adding & reducing seats
Seat increases are generally allowed during the term and align to the subscription. Seat decreases are generally limited to the cancellation window or renewal, so buy annual and three-year commitments with realistic headcount planning.
At renewal
Subscriptions normally renew at the end of the term unless renewal settings are changed before renewal. Review SKU choice, Teams versus no-Teams, add-ons, and seat count before the renewal date.
Upgrades & switches
Moving to a higher-value plan or adding separate add-ons is usually easier than downgrading midterm. Downgrades, SKU switches, and Teams versus no-Teams changes should be planned around renewal unless Microsoft allows a specific transition path.
Transferring to IT Partner
A transfer-in from another provider usually does not require moving user data. The key work is mapping existing subscriptions, avoiding overlap, checking term commitments, and placing the correct replacement SKUs with IT Partner.
Eligibility & fine print
Eligibility & prerequisites
No Commercial enterprise seat cap is stated in the source catalog data.
Prerequisites
- A Microsoft Commercial tenant is required for the Commercial offer.
- Base Microsoft 365 E3 user licenses do not require another Microsoft 365 suite license.
- Add-on SKUs should be attached to eligible users with the required base licensing; confirm the exact add-on prerequisite at checkout.
Assignment model
Microsoft 365 E3 is normally assigned per named user in the Microsoft 365 admin center. Service plans can be enabled or disabled by admins. Unattended license variants are separate catalog SKUs and should be used only for the appropriate unattended scenario.
Notes
- This content is written for the Commercial segment.
- Charity availability is present in the source catalog, but nonprofit eligibility and grant context should be handled on the Charity version of the page.
- Government and Education segments are not listed for this product in the provided source catalog.
Catalog constraints & variants
- Commercial catalog entries include Microsoft 365 E3, Microsoft 365 E3 (no Teams), Microsoft 365 E3 unattended license variants, and three-year variants.
- The available commitment terms in the source catalog are P1M, P1Y, and P3Y.
- The available billing options shown are Monthly, Annual, and Triennial, depending on the selected term and SKU.
- Entra P2 Add On and Defender for Endpoint P2 Add On for Microsoft 365 E3 are separate add-on SKUs in this catalog.
- Trial entries are present for the Entra P2 Add On and Defender for Endpoint P2 Add On, not for every Microsoft 365 E3 base SKU.
Commitment & payment summary
Commercial options in this catalog include monthly commitment paid monthly, annual commitment paid annually upfront or monthly, and three-year commitment paid annually or triennially. One-year annual billing and the listed three-year options have the lowest annualized cost posture for the corresponding base and no-Teams SKUs, while annual commitment paid monthly and monthly commitment cost more overall in exchange for cash-flow or flexibility considerations.
Frequently asked questions
What is Microsoft 365 E3 for Commercial customers?
Microsoft 365 E3 is an enterprise per-user subscription for commercial organizations, because it combines Microsoft 365 Apps, enterprise email and collaboration, Windows Enterprise E3 rights, Intune device management, and core identity and security capabilities. It is typically chosen for knowledge workers who need a full Microsoft 365 standard without moving to Microsoft 365 E5.
What is included with Microsoft 365 E3?
Microsoft 365 E3 includes Microsoft 365 Apps for enterprise, Exchange Online email and calendaring, OneDrive and SharePoint collaboration, Windows Enterprise E3 rights, Microsoft Intune, and Microsoft Entra ID Plan 1-aligned identity capabilities. Teams is included only when you select a Teams-included Microsoft 365 E3 SKU, because the Commercial catalog also contains separate no-Teams options.
What is not included in Microsoft 365 E3?
Microsoft 365 E3 does not include Microsoft Entra ID Plan 2, Microsoft Defender for Endpoint Plan 2, Copilot for Microsoft 365, Teams Phone calling plans, Power BI Pro, or the full Microsoft 365 E5 security, compliance, and analytics stack. Those capabilities require separate add-ons, a different plan, or a higher-tier license depending on the requirement.
Does Microsoft 365 E3 include Microsoft Teams?
Microsoft 365 E3 can include Teams, but only if the Teams-included SKU is selected. The Commercial catalog also includes Microsoft 365 E3 no-Teams SKUs, so buyers should choose the Teams or no-Teams path deliberately before checkout.
Should I buy Microsoft 365 E3 or Microsoft 365 E3 no Teams?
Choose Microsoft 365 E3 with Teams if your users need Teams chat, meetings, and collaboration under the same suite license. Choose Microsoft 365 E3 no Teams if your procurement, regional licensing, or collaboration strategy requires the no-Teams path, because the Teams-included and no-Teams SKUs are separate purchasing entries.
Is Copilot for Microsoft 365 included with Microsoft 365 E3?
No, Copilot for Microsoft 365 is not included in the base Microsoft 365 E3 license. Microsoft 365 E3 can be a relevant base for Copilot eligibility in many commercial scenarios, but Copilot itself is a separate purchase and its current prerequisites should be confirmed before ordering.
Does Microsoft 365 E3 include Microsoft Entra ID Plan 2?
No, Microsoft 365 E3 does not include Microsoft Entra ID Plan 2 as a base entitlement, because E3 includes core identity capabilities aligned to Entra ID Plan 1. The Commercial catalog includes an Entra P2 Add On, and IT Partner should confirm the exact prerequisite rules before purchase or trial activation.
Does Microsoft 365 E3 include Microsoft Defender for Endpoint Plan 2?
No, Microsoft 365 E3 does not include Microsoft Defender for Endpoint Plan 2 as a base entitlement. The Commercial catalog includes a Defender for Endpoint P2 Add On for Microsoft 365 E3, so buyers that need P2 endpoint security should budget and license that add-on separately.
Is Microsoft 365 E3 enough for enterprise security and compliance?
Microsoft 365 E3 is enough for many organizations that need baseline enterprise identity, device management, Windows Enterprise, and productivity security controls. It is not enough if your security or compliance team specifically requires E5-grade capabilities, Entra ID Plan 2, Defender for Endpoint Plan 2, advanced compliance, or analytics, because those require E5 or separate add-ons.
Does Microsoft 365 E3 include Windows Enterprise and Intune?
Yes, Microsoft 365 E3 includes Windows Enterprise E3 rights for licensed users and device and application management capabilities through Microsoft Intune. This is one of the main reasons buyers choose Microsoft 365 E3 instead of an Office-only plan, because E3 combines productivity, operating system rights, and endpoint management in one user license.
What is the difference between Microsoft 365 E3 and Office 365 E3?
Microsoft 365 E3 is broader than Office 365 E3, because Microsoft 365 E3 adds Windows Enterprise E3 rights, Intune device management, and additional identity and security value around the productivity suite. Office 365 E3 is more focused on Office apps, email, and collaboration, so it can be a better fit only when Windows Enterprise and Intune are not needed.
How does Microsoft 365 E3 compare with Microsoft 365 Business Premium?
Microsoft 365 E3 is an Enterprise family plan for commercial organizations that want enterprise licensing and no Commercial enterprise seat cap stated in the provided catalog data. Microsoft 365 Business Premium is a small and midsize business plan with different eligibility and service limits, so buyers should not treat it as a direct substitute without checking user count, enterprise requirements, and management needs.
What commitment and billing options are available for Microsoft 365 E3 Commercial?
The Commercial catalog shows monthly, one-year, and three-year commitment options, with billing choices that can include monthly, annual, or triennial billing depending on the exact SKU. Annual billing on one-year terms and the listed three-year options generally have the lowest annualized cost posture for the corresponding SKUs, while monthly commitment or annual commitment billed monthly trades higher overall cost for flexibility or cash-flow benefits.
Can I cancel Microsoft 365 E3 or reduce seats midterm?
Seat reductions and cancellations are generally limited under CSP/NCE to Microsoft’s short post-purchase or renewal cancellation window, because the commitment term governs flexibility even if the subscription is billed monthly. IT Partner should confirm the exact cancellation window and seat-reduction rules before the order is placed.
Can I add Microsoft 365 E3 seats during the term?
Yes, seat increases are generally allowed during the subscription term and align to the existing subscription term. Seat decreases are generally restricted to the cancellation window or renewal, so annual and three-year commitments should be purchased with realistic headcount planning.
Can Microsoft 365 E3 licenses be reassigned between users?
Microsoft 365 E3 is normally assigned per named user in the Microsoft 365 admin center, and admins can reassign licenses when users leave or roles change. It should not be pooled across multiple people, because it is a named-user subscription rather than a shared concurrent-use license.
Is there a free trial for Microsoft 365 E3 in this Commercial catalog?
The provided Commercial catalog shows trial entries for the Entra P2 Add On and the Defender for Endpoint P2 Add On for Microsoft 365 E3, not for every Microsoft 365 E3 base SKU. Buyers should not assume the full Microsoft 365 E3 suite has a trial from these add-on trial entries.
How should a company get started with Microsoft 365 E3 deployment?
Start by selecting the correct Teams-included or no-Teams SKU, then choose the commitment term that matches staffing stability. Most organizations pilot with IT and a representative business group, confirm identity and Intune device-management settings, and then expand by department while assigning licenses and enabling the required service plans.
Can we transfer Microsoft 365 E3 from another CSP to IT Partner without downtime?
Yes, a CSP transfer for Microsoft 365 E3 usually focuses on the licensing provider relationship rather than moving mailbox, OneDrive, SharePoint, or Teams data. Because the tenant data normally stays in place, the goal is a zero-downtime licensing transition, but IT Partner should review current SKUs, renewal dates, and term commitments to avoid overlap or gaps.
Is Microsoft 365 E3 Commercial the right offer for GCC, GCC High, nonprofit, or education buyers?
No, Microsoft 365 E3 Commercial is the standard commercial offer and should not be treated as GCC, GCC High, nonprofit grant, student, or faculty licensing. Government cloud residency and compliance requirements require the appropriate Government licensing path, nonprofit buyers should review Charity eligibility and grant context, and education buyers should use the applicable Education licensing programs.
Same Microsoft price — more on your side
IT Partner helps commercial buyers avoid expensive term, Teams/no-Teams, and add-on mistakes before checkout.
- We validate the exact Commercial SKU, term, and billing model before the order is placed.
- We help you decide whether base E3 is enough or whether Entra P2 or Defender for Endpoint P2 add-ons are needed.
- We review renewal dates and existing commitments to reduce duplicate billing during CSP transfers.
- We provide practical admin and licensing guidance after purchase, not just a checkout link.
Deploy it right
Microsoft SKUs for Microsoft 365 E3
Microsoft's catalog identifies this plan as ProductId CFQ7TTC0LFLX. Every full SKU below — the identifier format from Partner Center, Microsoft invoices, and o365hq.com quote links — resolves to this page, priced from the current US CSP price list. Ask us if your paperwork shows a SKU that isn’t listed.
| Our SKU (order token) | Microsoft SKU | Offer | Price |
|---|---|---|---|
CFQ7TTC0LFLX-001G-P1Y-A | CFQ7TTC0LFLX:001G | Microsoft 365 E3 (Non-Profit Pricing) — Charity · 1-year commitment · annual billing | $117.00/yr · $9.75/user/mo eq. |
CFQ7TTC0LFLX-001G-P1Y-M | CFQ7TTC0LFLX:001G | Microsoft 365 E3 (Non-Profit Pricing) — Charity · 1-year commitment · monthly billing | $10.24/mo · $10.24/user/mo eq. |
CFQ7TTC0LFLX-001G-P1M-M | CFQ7TTC0LFLX:001G | Microsoft 365 E3 (Non-Profit Pricing) — Charity · 1-month commitment · monthly billing | $11.70/mo · $11.70/user/mo eq. |
CFQ7TTC0LFLX-0001-P1Y-A | CFQ7TTC0LFLX:0001 | Microsoft 365 E3 — Commercial · 1-year commitment · annual billing | $468.00/yr · $39.00/user/mo eq. |
CFQ7TTC0LFLX-002Q-P3Y-A | CFQ7TTC0LFLX:002Q | Microsoft 365 E3 - 3 year — Commercial · 3-year commitment · annual billing | $468.00/yr · $39.00/user/mo eq. |
CFQ7TTC0LFLX-002Q-P3Y-T | CFQ7TTC0LFLX:002Q | Microsoft 365 E3 - 3 year — Commercial · 3-year commitment · triennial billing | $1,404.00/36mo · $39.00/user/mo eq. |
CFQ7TTC0LFLX-0001-P1Y-M | CFQ7TTC0LFLX:0001 | Microsoft 365 E3 — Commercial · 1-year commitment · monthly billing | $40.95/mo · $40.95/user/mo eq. |
CFQ7TTC0LFLX-0001-P1M-M | CFQ7TTC0LFLX:0001 | Microsoft 365 E3 — Commercial · 1-month commitment · monthly billing | $46.80/mo · $46.80/user/mo eq. |
Format: ProductId-SkuId-Term-Billing(A = annual billing, M = monthly, T = triennial). Prices are Microsoft ERP for the segment shown and change with Microsoft’s monthly price list.
Informational — we’ll confirm exact entitlements with you. Product specifics are governed by the Microsoft Product Terms and the applicable licensing documentation. Prices refresh monthly under Microsoft’s New Commerce Experience; terms may change at renewal.