The Expanded E3 and E5 Functionality Has Arrived. Now What?

For the better part of the last six months, we've been talking with clients about Microsoft's licensing changes and the additional functionality being added to Microsoft 365 E3 and E5. As of July 1, those capabilities are no longer "coming soon." They're here.

The question I hear most often is simple:

"What should we do now?"

My answer is equally simple:

Don't treat this as just a licensing update and price increase at your next renewal. Treat it as an opportunity to improve security, simplify management, and reduce third-party software spending.

Many organizations will automatically receive significant new capabilities without purchasing an additional add-on. The challenge is that simply owning the functionality doesn't mean you're using it.

The Biggest Mistake Organizations Make

Over the years, I've seen companies invest heavily in Microsoft licensing while utilizing only a fraction of what they already own.

In fact, one of the most common conversations we have with clients isn't about buying something new. It's about helping them identify functionality they've already paid for but never deployed. With the July updates, that gap may become even larger.

Microsoft has added substantial endpoint management, security, and AI-related capabilities into the E3 and E5 suites, including Intune enhancements, Defender for Office 365 capabilities, and additional security tools designed to help organizations manage modern devices and protect data more effectively.

If no one takes ownership of reviewing those additions, there's a good chance they'll sit unused.

Why These New Features Matter

The value isn't simply that there are "more features." The value is that Microsoft continues to consolidate capabilities that previously required separate products, separate vendors, or additional licensing.

For E3 customers, the inclusion of Defender for Office 365 Plan 1 adds stronger protection for email, links, attachments, and phishing threats. That's significant because email remains one of the most common entry points for cyberattacks.

Organizations are also seeing more Intune functionality become available, including capabilities like Remote Help, Advanced Analytics, and Intune Plan 2 features. These additions help IT teams support users faster, improve visibility into device health, and strengthen endpoint management.

For E5 customers, the value proposition becomes even stronger. Enhanced endpoint management features, Security Copilot-related capabilities, and advanced security functionality continue Microsoft's push toward a more integrated security platform.

What makes these additions important is not any single feature. It's the cumulative effect.

Before diving into next steps, if you're looking for a detailed walkthrough of the specific E3 and E5 enhancements, I recommend watching Interlink's Microsoft Licensing Unlocked: E3 & E5 Updates, Pricing Changes, and Insider Tips webinar replay. In that session, we break down the additions to E3 and E5, discuss licensing considerations, review common misconfigurations, and explain how the new functionality fits into a broader security, management, and AI strategy.

Four Things Every Organization Should Do Right Now

1. Conduct a License Review

Inventory your Microsoft licenses and identify which new capabilities became available on July 1. Look for opportunities to replace overlapping third-party tools.

2. Review Security Settings

Verify that newly included security features are configured and being used, particularly Defender for Office 365, Intune, Entra ID, and compliance controls.

3. Evaluate Third-Party Tools

Assess whether existing security, device management, and support tools are still necessary now that additional functionality is included in E3 and E5.

4. Build an Adoption Roadmap

Prioritize the capabilities that address your most pressing business needs and roll them out in phases rather than all at once.

The Real Opportunity

The conversation around Microsoft's July updates has understandably focused on licensing and pricing.

I think that's the wrong conversation.

The better conversation is:

How will the new functionality improve our environment?

Microsoft continues to fold advanced capabilities into its core platforms because the lines between productivity, security, device management, and AI are disappearing.

Organizations that take the time to understand and activate these capabilities will likely see greater value from their existing investment.

Organizations that don't may end up paying for tools they no longer need while missing opportunities to improve security and operations.

The new functionality is here.

Now is the time to find out what you've gained, what to simplify, and how to put these capabilities to work. With Microsoft's FY27 kicking off, there are new programs and promotions available that you might be eligible for.