Office 365 Plan E1 vs E3 Which One is Right for You : Fast-Track Guide to Choosing the Best Office 365 Plan

Choosing between Office 365 Plan E1 and E3 can be a pivotal decision for businesses and individuals seeking the right balance of features, security, and cost. Both plans offer access to Microsoft’s productivity suite, but they cater to different needs and use cases. In this article, I’ll break down the core differences between these two offerings and help you determine which one aligns best with your requirements.

Office 365 E1 Plan: This is the entry-level enterprise plan, providing all the necessary cloud-based productivity services for collaboration. With E1, users gain access to online versions of Office applications (Word, Excel, PowerPoint, Outlook, etc.), Exchange email, OneDrive for Business (1TB cloud storage), Microsoft Teams, and SharePoint. However, desktop versions of Office apps are not included—users can only use the applications through a web browser. E1 is best suited for companies that prioritize cloud-based workflows and have employees working remotely or on shared devices.

Office 365 E3 Plan: E3 builds on the features of E1, offering everything in the E1 package and much more. The most notable upgrade is the inclusion of full, installable versions of Office applications across PCs, Macs, and mobile devices. Also, E3 brings advanced security features, compliance capabilities, and information protection tools such as Data Loss Prevention (DLP), Rights Management, and message encryption. Moreover, E3 raises the mailbox limit to 100GB per user—doubling that of E1’s 50GB—and adds unlimited OneDrive storage upon request. This plan is ideal for businesses that require advanced compliance, business intelligence, and on-premise productivity due to diverse work environments.

As a designer, I always approach business software through the lens of workflow optimization and user-centric flexibility. For example, if your team values seamless integration between design tools, collaboration platforms, and secure document management, the right Office Layout Planner not only improves efficiency but also ensures your team leverages the full spectrum of workspace technology, much like how the E3 plan supports multiple devices and advanced compliance needs. Choosing between E1 and E3 is similar to selecting the right interior plan—consider the unique functional requirements and future growth of your organization.

Tips 1:

If you’re on the fence, consider running a pilot program with a few users on each plan. Analyze usage patterns and feedback to determine which features your team actually uses—and which ones might just look good on paper. Sometimes, incremental improvements in security and productivity justify the investment in the higher-tier plan.

FAQ

Q: Can Office 365 E1 users install desktop versions of Office applications?

A: No, the E1 plan only provides web-based Office apps. To install desktop applications, the E3 plan is required.

Q: What security and compliance features are unique to Office 365 E3?

A: E3 offers Data Loss Prevention (DLP), advanced message encryption, Rights Management, advanced archiving, and other compliance controls not available with E1.

Q: How much OneDrive storage does each plan offer?

A: E1 offers 1TB of storage per user, while E3 includes 1TB initially, which can be increased to unlimited storage upon request.

Q: Is it possible to mix E1 and E3 licenses within the same organization?

A: Yes, businesses can assign different plan licenses to different users depending on their needs.

Q: Who should choose E1 over E3?

A: E1 is a great fit for users who work primarily online and do not require advanced compliance, security, or desktop applications. E3 is better suited for organizations with more complex needs and device flexibility.