Should You Move a Client From E3 to M365 Business? A Decision Checklist
TL;DR
- As of April 2019, Microsoft added features to M365 Business that close much of the security and compliance gap with E3.
- The Shift Campaign pays 15% margin in year one on net-new M365 Business seats or upgrades from a plan like E3, an incentive to make the move now.
- Keep E3 for tenants over 300 users, RDS deployments running ProPlus, or clients not adopting Intune or Windows 10.
- Move to M365 Business for tenants under 300 users that want Intune for MDM and policy and are upgrading workstations to Windows 10.
- The hardest part of the transition is the scripted uninstall of ProPlus and reinstall of Office Business Retail, done through Intune with no end-user disruption.
The choice between E3 and M365 Business used to be obvious for larger or security-conscious clients. As of April 2019 it is not, because Microsoft added features to M365 Business that check off more security and compliance boxes than before. With the Shift Campaign (opens in new tab) paying 15% margin in year one on net-new M365 Business seats and upgrades from plans like E3, the question is worth revisiting for every client.
Start with a feature comparison between the two plans:
When to keep a client on E3
- You do not plan on using Intune for MDM and MAM
- You have a user count over 300 users
- You do not need to upgrade users to Windows 10
- You have RDS deployed with ProPlus
When to move a client to M365 Business
- You want to adopt Intune as your MDM and policy solution, moving away from a traditional GPO environment
- You have fewer than 300 users
- You have workstations that need upgrading to Windows 10
- You do not have RDS deployed
- You want the new licensing model: OS as a service, Intune for policy management, and Azure AD for identity management
- You want 15% or more margin for the first year of the subscription
How the transition actually runs
Beyond re-licensing the users, the biggest hurdle is the Office suite swap, because you are moving from ProPlus to Office Business Retail. That means an uninstall and reinstall, and the transition steps guide (opens in new tab) shows how to do it through Intune.
The reason this works in practice:
- The end user does not know anything is happening
- It is completely scripted behind the scenes
- You do not need to touch every workstation
Frequently asked questions
When should an MSP keep a client on E3 instead of moving to M365 Business?
Keep E3 when the tenant has more than 300 users, has RDS deployed with ProPlus, does not need Windows 10 upgrades, or has no plans to use Intune for MDM and MAM. M365 Business has a 300-seat ceiling and assumes the modern device model.
What is the hardest part of an E3 to M365 Business transition?
Beyond re-licensing the users, the biggest hurdle is the Office suite swap: moving from ProPlus to Office Business Retail requires an uninstall and reinstall. Done through Intune it is fully scripted, the end user notices nothing, and you do not touch every workstation.
Re-license, then re-verify
An E3 to M365 Business move changes which security features a tenant even has. CloudCapsule checks 250+ controls in 60 seconds so the new SKU's protections are actually switched on, not just licensed.
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Written by
Nick Ross
CEO · Microsoft MVP · Founder, T-Minus 365
Nick is not just a CEO, he's a respected thought leader and influencer in the MSP space. Tens of thousands of MSPs learn through his YouTube channel, T-Minus365. Nick has been honored as a three-time Microsoft MVP for his educational content; his expertise and influence are the backbone of our mission, ensuring that you are in the best hands when it comes to security.
Nick joined Pax8 in 2017, where he would ultimately oversee product management for PSA and Microsoft integrations. Following his tenure at Pax8, Nick has continued to demonstrate his leadership prowess as an executive at various MSPs, culminating in his most recent role at Sourcepass.
Nick holds a Bachelor's Degree in Business Management from Florida State University, as well as a Minor Degree in Entrepreneurship. In his free time, Nick is an avid hiker, reader, and fitness-junkie.
