Microsoft security licensing, explained: which license unlocks which feature

Microsoft sells security across a maze of suites and add-ons. Conditional Access needs one license, Privileged Identity Management needs another, Defender and Purview split into plans, and the names keep changing. This page maps every major security capability to the license that unlocks it, then shows how to buy each one and roughly what it costs.

Orientation, not a quote. License terms and prices change often. Verify against the Microsoft 365 pricing page and the product licensing terms, or ask your Microsoft partner.

The short version

Three tiers cover most of it. Free gets you security defaults and basic MFA. Premium 1 (P1) unlocks the everyday controls most organizations actually need, Conditional Access chief among them. Premium 2 (P2) and the E5 tier unlock the advanced, risk-based, and investigative features.

If you want...You generally need...
Basic MFA, security defaultsMicrosoft Entra ID Free (included with any Microsoft 365 plan)
Conditional Access, self-service password resetMicrosoft Entra ID P1 (in M365 E3, EMS E3, Business Premium, F1/F3)
Risk-based access, Identity Protection, PIMMicrosoft Entra ID P2 (in M365 E5, EMS E5)
Advanced Defender (EDR, Defender for Identity, Defender for Cloud Apps)Microsoft 365 E5, or the E5 Security add-on
Advanced Purview (auto-labeling, endpoint DLP, Insider Risk)Microsoft 365 E5, or the E5 Compliance add-on
Device management (Intune)Intune Plan 1 (in M365 E3/E5, EMS, Business Premium, F1/F3)

How Siemserva reads your licensing, and scans more when you have more

Siemserva does not assume what you own. At the start of a scan it asks your tenant what is actually licensed by reading your subscribed SKUs and their service plans from Microsoft Graph. It then turns the matching checks on or off automatically. The more security you have licensed, the more Siemserva can inspect, so the same tool fits a lean Business Premium tenant and a full Microsoft 365 E5 enterprise without any reconfiguration.

It also distinguishes a missing license from a missing permission. If a workload is not licensed, or the account running the scan lacks the directory role to read it, Siemserva does not fail. It records a clear, named result explaining what was skipped and why, then continues with everything else. Your scan always finishes, and you can see exactly which features would add coverage.

What more licensing unlocks in a scan

When the tenant has...Siemserva adds...
Microsoft Entra ID (any plan)Core identity coverage: users, directory and Azure roles, applications and service principals, sign-in and authentication checks.
Microsoft Entra ID P1Conditional Access and MFA posture checks across the tenant.
Microsoft Entra ID P2 (or E5)Privileged Identity Management and Identity Protection checks, and risk-based access review.
Microsoft IntuneDevice compliance, configuration profiles, antivirus, firewall, attack surface reduction, encryption, and update coverage.
Microsoft PurviewSensitivity label, retention, and data governance checks.
Microsoft Defender workloadsThe matching email, endpoint, identity, and cloud-app protection checks for what is enabled.

In short: license detection is automatic, coverage scales with your subscriptions, and an unlicensed or unreachable workload is reported as skipped rather than silently dropped. You always know what was checked and what was not.

The feature-to-license map

The capability you want, the minimum license that turns it on, and the common suites that include it. "M365" means Microsoft 365.

Security capabilityMinimum license to unlockCommonly included in
Identity and access (Microsoft Entra ID)
Security defaults, basic MFAEntra ID FreeEvery Microsoft 365 plan
Conditional Access policiesEntra ID P1M365 E3 / E5, EMS E3 / E5, Business Premium, F1 / F3
Self-service password reset (cloud)Entra ID P1M365 E3 / E5, EMS, Business Premium
Risk-based Conditional AccessEntra ID P2M365 E5, EMS E5
Identity Protection (risky users and sign-ins)Entra ID P2M365 E5, EMS E5
Privileged Identity Management (PIM)Entra ID P2M365 E5, EMS E5
Access reviewsEntra ID P2 or Entra ID GovernanceM365 E5, EMS E5
Entitlement management, lifecycle workflowsEntra ID Governance (add-on)Add-on on top of P1 / P2
Workload identity Conditional AccessWorkload Identities Premium (add-on)Standalone add-on
Threat protection (Microsoft Defender)
Anti-malware, anti-spam (EOP)Exchange Online / any M365 planM365 Business and Enterprise
Safe Links, Safe Attachments, anti-phishingDefender for Office 365 Plan 1M365 E5, E5 Security, Business Premium
Threat Explorer, Attack Simulation, auto investigationDefender for Office 365 Plan 2M365 E5, E5 Security
Next-gen AV, attack surface reductionDefender for Endpoint Plan 1M365 E3
Endpoint EDR, threat and vulnerability managementDefender for Endpoint Plan 2M365 E5, E5 Security
SMB endpoint protectionDefender for BusinessBusiness Premium, standalone
Defender for Identity (on-prem AD signals)Defender for IdentityM365 E5, E5 Security, EMS E5
Defender for Cloud Apps (CASB)Defender for Cloud AppsM365 E5, E5 Security, EMS E5
Microsoft Defender XDR portalAny Defender workload aboveM365 E5, E5 Security
Microsoft Secure ScoreFree with the workloadsAll plans with the relevant workloads
Data security and compliance (Microsoft Purview)
Manual sensitivity labelsM365 E3M365 E3 / E5, Business Premium
Automatic labeling (client and service)M365 E5 or E5 ComplianceM365 E5, E5 Compliance
DLP for Exchange, SharePoint, OneDrive, TeamsM365 E3M365 E3 / E5
Endpoint DLPM365 E5 or E5 ComplianceM365 E5, E5 Compliance
Retention policies (basic)M365 E3M365 E3 / E5
Records management, auto-apply retentionM365 E5 or E5 ComplianceM365 E5, E5 Compliance
Audit (Standard)M365 E3M365 E3 / E5
Audit (Premium, longer retention)M365 E5 or E5 ComplianceM365 E5, E5 Compliance
eDiscovery (Standard)M365 E3M365 E3 / E5
eDiscovery (Premium)M365 E5 or E5 ComplianceM365 E5, E5 Compliance
Insider Risk ManagementM365 E5 or E5 ComplianceM365 E5, E5 Compliance
Communication ComplianceM365 E5 or E5 ComplianceM365 E5, E5 Compliance
Information BarriersM365 E5 or E5 ComplianceM365 E5, E5 Compliance
Customer Key, Double Key EncryptionM365 E5 or E5 ComplianceM365 E5, E5 Compliance
Device management (Microsoft Intune)
MDM and MAM, compliance policies, config profilesIntune Plan 1M365 E3 / E5, EMS E3 / E5, Business Premium, F1 / F3
App protection policiesIntune Plan 1M365 E3 / E5, EMS, Business Premium
Endpoint Privilege Management, Remote Help, Advanced AnalyticsIntune Suite (add-on)Standalone add-on
Cloud PKI, specialty and cloud devicesIntune Plan 2 / Intune SuiteAdd-on
Cloud workloads and SIEM
Microsoft Sentinel (SIEM and SOAR)Azure consumption (per GB ingested)Not a per-user license; pay-as-you-go in Azure
Defender for Cloud (Azure and multicloud CSPM)Azure consumption, per-resource plansFree CSPM tier; paid plans per resource

The suites and add-ons, and what they cost

The licenses behind the table above, what each is for, and an approximate list price. Prices are USD per user per month on an annual commitment unless noted.

Approximate list prices as of mid-2026. Microsoft changes pricing and packaging regularly, partner and volume pricing differs, and nonprofit and education pricing is much lower. Treat these as ballpark, not a quote.

License / SKUWhat it is forApprox list price (USD / user / mo)
Microsoft 365 suites
Microsoft 365 Business BasicSMB email and apps, basic security~$6
Microsoft 365 Business StandardSMB apps plus desktop Office~$12.50
Microsoft 365 Business PremiumSMB security bundle: Entra ID P1, Intune, Defender for Business, Defender for Office P1~$22
Microsoft 365 F1Frontline, identity and basic security (no Office desktop)~$2.25
Microsoft 365 F3Frontline with Office web, Entra ID P1, Intune~$8
Microsoft 365 E3Enterprise base: Entra ID P1, Intune P1, Defender for Endpoint P1, core Purview~$36
Microsoft 365 E5Everything in E3 plus Entra ID P2, advanced Defender and Purview~$57
Office 365 and EMS
Office 365 E3 / E5Apps and services without the EMS security stack~$23 / ~$38
Enterprise Mobility + Security E3Entra ID P1 and Intune, without Office~$10.60
Enterprise Mobility + Security E5Entra ID P2, Intune, Defender for Identity and Cloud Apps~$16.40
Identity add-ons
Microsoft Entra ID P1Conditional Access, SSPR, password protection~$6
Microsoft Entra ID P2Identity Protection, PIM, access reviews~$9
Microsoft Entra ID GovernanceEntitlement management, lifecycle workflows (on top of P1/P2)~$7
Security and compliance add-ons (on top of E3)
Microsoft 365 E5 SecurityAdds the advanced Defender stack and Entra ID P2 to E3~$12
Microsoft 365 E5 ComplianceAdds advanced Purview to E3~$12
Standalone Defender and Intune
Defender for Office 365 Plan 1 / Plan 2Email and collaboration protection~$2 / ~$5
Defender for Endpoint Plan 1 / Plan 2Endpoint AV and EDR~$3 / ~$5.20
Defender for BusinessSMB endpoint protection~$3
Defender for Cloud AppsCloud app discovery and control (CASB)~$5
Microsoft Intune Plan 1Device and app management~$8
Microsoft Intune SuiteAdvanced endpoint management add-on~$10
Microsoft SentinelSIEM, billed by data ingestedConsumption, roughly $2 to $5 per GB

How to actually buy them

The same license can be bought several ways, and the channel changes the price, the support, and the flexibility.

ChannelBest forNotes
Microsoft 365 admin center (web direct)Small organizations buying a handful of seatsSelf-serve with a credit card, monthly or annual. Simple, but list price and limited negotiation.
Cloud Solution Provider (CSP) partnerMost SMB and mid-market organizationsA Microsoft partner bills you, often monthly, bundles support, and can mix and add-on SKUs flexibly. The most common path.
Enterprise Agreement (EA) or Microsoft Customer AgreementLarge organizations (typically 500-plus seats)Volume discounts, true-ups, and longer terms. More commitment, better unit pricing.
Microsoft 365 for NonprofitsEligible 501(c)(3) and equivalent nonprofitsGrants (including free Business Premium seats) and deep discounts on E-series. Apply through Microsoft.
Microsoft 365 Education (A1 / A3 / A5)Schools and universitiesEducation-priced equivalents of the enterprise suites, with A5 carrying the advanced security stack.

Licensed it? Now prove it is actually configured

Buying E5 does not make you secure. It gives you the features. The gap that hurts is the one between what you pay for and what is actually turned on and configured correctly: Conditional Access that was never built, PIM left unused, DLP in report-only mode, Defender policies at defaults.

Siemserva scans your tenant and surfaces exactly that gap. It runs 650+ deterministic checks across Microsoft 365, Intune, Entra ID (logs included), CVEs, and Purview, shows where licensed security features are unconfigured or weak, and pairs each finding with AI-created, Siemserva-validated remediation. You see the security you are already paying for, and what it would take to switch it on.

See the full Microsoft security landscape  |  How Microsoft baselines map to your tenant  |  Compliance frameworks reference

Frequently asked questions

Which license do I need for Conditional Access?

Conditional Access requires Microsoft Entra ID P1. P1 is included in Microsoft 365 E3 and E5, EMS E3 and E5, Microsoft 365 Business Premium, and the F1 and F3 frontline plans. Risk-based Conditional Access, which reacts to sign-in and user risk, additionally requires Entra ID P2.

What is the difference between Microsoft 365 E3 and E5 for security?

E3 gives you the baseline: Entra ID P1 (Conditional Access), Intune, Defender for Endpoint Plan 1, and core Purview such as standard DLP, retention, and audit. E5 adds the advanced tier: Entra ID P2 (Identity Protection and PIM), Defender for Endpoint Plan 2, Defender for Office 365 Plan 2, Defender for Identity, Defender for Cloud Apps, and advanced Purview such as auto-labeling, endpoint DLP, and Insider Risk Management.

Can I add E5 security features to E3 without buying full E5?

Yes. The Microsoft 365 E5 Security add-on layers the advanced Defender stack and Entra ID P2 onto an E3 base, and the E5 Compliance add-on layers on the advanced Purview features. Together they are a common, lower-cost path to most of the E5 security value.

Which license do I need for Privileged Identity Management (PIM)?

PIM requires Microsoft Entra ID P2, which is included in Microsoft 365 E5, EMS E5, and the Microsoft 365 E5 Security add-on.

Is Microsoft Sentinel a per-user license?

No. Sentinel is billed on Azure consumption, primarily by the volume of data ingested per day, not per user. You can start pay-as-you-go and move to commitment tiers for volume discounts.

Do nonprofits get Microsoft security licenses for less?

Yes. Eligible nonprofits can receive grants, including free Microsoft 365 Business Premium seats, and discounted enterprise plans. Siemserva itself is free for 501(c)(3) nonprofits.

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