Microsoft recently introduced Microsoft 365 E3 as part of its licensing changes, giving organizations more flexibility in choosing collaboration tools. If you’re wondering what this plan includes, why it exists, and whether it’s right for your business, this post breaks it all down.
What is Microsoft 365 E3 ?
Microsoft 365 E3 is a robust enterprise plan that combines best-in-class productivity apps, enterprise-grade security, and Windows 11 Enterprise. The No Teams variant removes Microsoft Teams from the bundle, allowing organizations to:
Avoid redundancy if they already use other collaboration platforms (e.g., Zoom, Slack).
Reduce costs by not paying for a service they don’t need.
Stay compliant with regional regulations (this change was largely driven by EU antitrust requirements).
Key Features of Microsoft 365 E3
Even without Teams, you still get a powerful suite of tools:
Office Apps: Word, Excel, PowerPoint, Outlook, OneNote, and Access (PC only).
Email & Calendar: Exchange Online with business-class email.
File Storage & Sharing: 1 TB OneDrive per user + SharePoint.
Security & Compliance:
Microsoft Purview Information Protection
Data Loss Prevention (DLP)
eDiscovery and Legal Hold
Device & Identity Management:
Azure AD Premium P1
Microsoft Intune for endpoint management
Windows 11 Enterprise for advanced security and management.
Automation & Apps: Power Automate, Power Apps, Microsoft Lists, Planner, and To Do.
What is Microsoft 365 E3 (No Teams)?
Microsoft 365 E3 is a robust enterprise plan that combines best-in-class productivity apps, enterprise-grade security, and Windows 11 Enterprise. The No Teams variant removes Microsoft Teams from the bundle, allowing organizations to:
Avoid redundancy if they already use other collaboration platforms (e.g., Zoom, Slack).
Reduce costs by not paying for a service they don’t need.
Stay compliant with regional regulations (this change was largely driven by EU antitrust requirements).
Key Features of Microsoft 365 E3 (No Teams)
Even without Teams, you still get a powerful suite of tools:
Office Apps: Word, Excel, PowerPoint, Outlook, OneNote, and Access (PC only).
Email & Calendar: Exchange Online with business-class email.
File Storage & Sharing: 1 TB OneDrive per user + SharePoint.
Security & Compliance:
Microsoft Purview Information Protection
Data Loss Prevention (DLP)
eDiscovery and Legal Hold
Device & Identity Management:
Azure AD Premium P1
Microsoft Intune for endpoint management
Windows 11 Enterprise for advanced security and management.
Automation & Apps: Power Automate, Power Apps, Microsoft Lists, Planner, and To Do.
Pricing
Microsoft 365 E3 (No Teams): $33.75 per user/month (annual commitment).
Microsoft Teams Enterprise Add-on: $5.25 per user/month if you decide to add Teams later.
This modular approach gives businesses more control over costs and tools.1
Why Did Microsoft Unbundle Teams?
The change came after regulatory scrutiny in the EU, where bundling Teams with Microsoft 365 was seen as anti-competitive. Now, organizations can choose whether to include Teams or not, making the ecosystem more flexible.2
Pros & Cons of E3 (No Teams)
Pros
Lower cost if you don’t need Teams.
Flexibility to use alternative collaboration tools.
Same security, compliance, and productivity features as standard E3.
Cons
Teams is not included by default (extra cost if needed).
Some Microsoft Viva features require Teams for full functionality.
Who Should Consider This Plan?
Organizations using other collaboration platforms (Slack, Zoom, Webex).
Businesses in regions with regulatory requirements.
Companies looking to optimize licensing costs without sacrificing security and productivity.
Final Thoughts
Microsoft 365 E3 (No Teams) is a smart move for businesses that want enterprise-grade productivity and security without being locked into a single collaboration tool. If you need Teams later, you can always add it as a standalone service.
Microsoft 365 E3: $33.75 per user/month (annual commitment).
Microsoft Teams Enterprise Add-on: $5.25 per user/month if you decide to add Teams later.
This modular approach gives businesses more control over costs and tools.1
Why Did Microsoft Unbundle Teams?
The change came after regulatory scrutiny in the EU, where bundling Teams with Microsoft 365 was seen as anti-competitive. Now, organizations can choose whether to include Teams or not, making the ecosystem more flexible.2
Pros & Cons of E3
Pros
Lower cost if you don’t need Teams.
Flexibility to use alternative collaboration tools.
Same security, compliance, and productivity features as standard E3.
Cons
Teams is not included by default (extra cost if needed).
Some Microsoft Viva features require Teams for full functionality.
Who Should Consider This Plan?
Organizations using other collaboration platforms (Slack, Zoom, Webex).
Businesses in regions with regulatory requirements.
Companies looking to optimize licensing costs without sacrificing security and productivity.
Microsoft 365 E3 is a smart move for businesses that want enterprise-grade productivity and security without being locked into a single collaboration tool. If you need Teams later, you can always add it as a standalone service.
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