Office 365 E1 vs E3 Which Plan Is Right for You : A Quick Comparison Guide to Office 365 Plans

Choosing between Office 365 E1 and E3 plans can be a pivotal decision for organizations seeking to balance features, security, and budget. Both plans are designed to support team collaboration, productivity, and secure communication, but they cater to distinctly different business needs. In this article, we'll break down the key differences, compare the features, and provide insight—through the lens of an interior designer—on how your office's virtual workspace can benefit from the right plan selection.

Office 365 E1: This is the entry-level enterprise plan focusing on cloud-based productivity. It includes web-based Office applications (like Word, Excel, and PowerPoint), email with Exchange Online, OneDrive for Business, Microsoft Teams, SharePoint, and Yammer. However, the desktop versions of Office apps are not included; you access them via a browser or mobile device. E1 is ideal for businesses that use PCs less frequently or rely heavily on collaboration and remote work.

Office 365 E3: This plan includes everything in E1 but adds more advanced features. The most notable are the fully installed Office desktop applications on up to five devices per user, advanced security tools, compliance features, data loss prevention, legal hold, and more customizable archiving. Organizations that demand greater flexibility, security, and productivity will find E3 to be a more comprehensive solution.

Key Differences at a Glance:

1. Desktop Apps: E3 offers fully-installed apps; E1 is web/mobile only.
2. Security & Compliance: E3 adds data loss prevention and legal hold.
3. Storage: Both plans offer 1TB of OneDrive storage/user.
4. Email Features: E3 includes archive and mailbox litigation hold; E1 does not.
5. Cost: E1 is budget-friendly; E3 costs more but delivers advanced tools.

As an interior designer and workspace consultant, I know that every office environment—physical or virtual—should reflect both functionality and inspiration. The same principle applies to your digital workspace. When I approach office layout planning, I focus on creating zones that align with team workflows. Similarly, when choosing between E1 and E3, consider not just price, but how your team will interact with digital tools: Do you need robust desktop applications and enhanced data security, or will efficient cloud collaboration and communication suffice? Choosing the right plan helps streamline your virtual office, just as the right layout boosts productivity in your physical space.

Tips 1:

For growing businesses, regularly reassess your needs as teams expand and workflows change. Start with E1 if your needs are basic, but don’t hesitate to upgrade to E3 as you add users who require advanced tools and greater data protection.

FAQ

Q: What is the main difference between Office 365 E1 and E3?

A: E1 is cloud-based with online Office apps; E3 includes both online and full desktop apps plus advanced security features.

Q: Is Office 365 E3 worth the extra cost over E1?

A: Yes, if your organization needs desktop applications, greater data protection, and compliance features; otherwise, E1 may suffice for basic collaboration.

Q: Can I mix E1 and E3 licenses in my company?

A: Absolutely, you can assign different plans to different users based on their roles and needs.

Q: Does E1 include desktop versions of Office apps?

A: No, E1 users access Office apps via browser or mobile; E3 provides full installations.

Q: Which plan is best for remote or hybrid teams?

A: Both support remote work, but E3 adds flexibility for users who rely on desktop applications and need advanced collaboration or security features.