Hereβs a breakdown of the key feature differences between Microsoft 365 Business Standard and Office 365 E3, focusing on what's relevant for most small to mid-sized businesses:
| Feature | Business Standard | Office 365 E3 |
|---|---|---|
| User Limit | 300 users max | Unlimited |
| Office Apps (Word, Excel, etc.) | β Full desktop + web + mobile | β Full desktop + web + mobile |
| Email (Exchange Online) | β 50 GB mailbox | β 100 GB mailbox + In-Place Archive |
| OneDrive Storage | β 1 TB per user | β 1 TB per user (expandable) |
| SharePoint / Teams | β Included | β Included |
| Microsoft Purview Data Loss Prevention (DLP) | β Not included | β Included |
| eDiscovery, Legal Hold | β Not included | β Included |
| Office Web Add-ins Controls (like Information Rights Management) | β Not included | β Included |
| Customer Lockbox, Message Encryption | β Not included | β Included |
| Power Apps / Power Automate Premium connectors | β Not included | β Not included (requires additional license) |
| On-premises CAL rights | β Not included | β Included (for hybrid Exchange, Skype for Business, etc.) |
Choose Business Standard if:
Youβre under 300 users.
You donβt need advanced compliance, archiving, or security features.
You want full Office apps, cloud storage, Teams, and email β and that's enough.
Choose Office 365 E3 if:
You need more than 300 users.
You need archiving, compliance tools, DLP, eDiscovery, or legal hold.
You're in a regulated industry or need enhanced control/security.
Microsoft 365 E3:
Microsoft 365 E3 is a bundle that includes Office 365 E3 + additional security and management features. It includes everything in Office 365 E3, plus:
β Windows Enterprise license
β Microsoft Entra ID Premium P1
β Microsoft Intune
β
Advanced security, device management, and compliance tools
| Exchange Online Plan 1 | Microsoft 365 Business Standard | Office 365 E3 | |
|---|---|---|---|
| Email Hosting (Exchange) | β 50 GB mailbox | β 50 GB mailbox | β 100 GB mailbox + Archive |
| Outlook Web Access | β | β | β |
| Exchange ActiveSync | β | β | β |
| In-Place Archive Mailbox | β | β | β 100 GB + expandable |
| eDiscovery & Legal Hold | β | β | β |
| DLP (Data Loss Prevention) | β | β | β |
| Office Apps (Word, Excel, etc.) | β | β (desktop/web/mobile) | β (desktop/web/mobile) |
| OneDrive for Business (1 TB) | β | β | β |
| Microsoft Teams | β | β | β |
| SharePoint Online | β | β | β |
| Business-class email + calendar | β | β | β |
| Maximum Users | Unlimited | 300 | Unlimited |
| Microsoft Entra ID Free | β | β | β |
| Use Case | Best Option |
|---|---|
| Just need email | β Exchange Online Plan 1 |
| Need email + Office apps + Teams + storage | β Microsoft 365 Business Standard |
| Need all that + archiving, DLP, compliance tools | β Office 365 E3 |
Great question β yes, both Business Standard and Office 365 E3 include Entra ID, but not at the same level.
Here's the breakdown:
| Business Standard | Office 365 E3 | |
|---|---|---|
| Included Tier | Entra ID Free | Entra ID Free |
| Can Join Devices to Entra ID (Azure AD) | β | β |
| Single Sign-On (SSO) to Microsoft 365 Apps | β | β |
| Self-Service Password Reset (Cloud only) | β | β |
| Basic Security Defaults (MFA prompt for all users) | β | β |
| Conditional Access Policies | β | β |
| Hybrid Join / Group-Based Licensing / Identity Governance | β | β |
| Privileged Identity Management (PIM) | β | β |
or Entra ID P2 (for more advanced identity protection)
These are not included with either Business Standard or Office 365 E3 β you'd license them separately or get them as part of Microsoft 365 E3 or E5 (which include more security and management features beyond just Office).
Procedure when user requests to upgrade their MS account (more storage)