Choosing the Right Microsoft 365 Security & Licensing in Australia

Practical Advice from Kloudify on Business Premium, E3, E5 and Copilot

At Kloudify, one of the most common conversations we have with customers isn’t “What’s the most powerful Microsoft licence?” it’s “What do we actually need, and what are we paying for that we don’t use?”

Microsoft’s licensing landscape has evolved quickly, particularly around security, compliance and AI. While that’s a good thing, it has also made decision-making harder for Australian organisations that want to stay secure without overspending.

This article is written from real-world experience helping Australian businesses design the right Microsoft 365 setup not the biggest one.

The table below outlines commonly used Microsoft 365 licences and security add-ons, with indicative RRP Australian pricing (AUD, ex-GST).

Microsoft 365 Licences & Security Add-Ons (Australia)

Microsoft 365 Business Premium – Still the Smartest Starting Point for most SMBs

For most Australian organisations under 300 users, Microsoft 365 Business Premium remains the strongest value licence Microsoft offers.

It includes:

• Office apps (desktop and cloud)
• Microsoft Intune for device and application management
• Microsoft Entra ID P1 (identity and conditional access)
• Microsoft Defender for Business (endpoint protection)
• Core compliance and data protection controls

For many customers, this licence alone delivers everything they need to operate securely — particularly when paired with good configuration and governance.

Where Business Premium starts to stretch is when organisations ask:

• How do we better protect against identity-based attacks?
• How do we stop sensitive data leaving the business?
• What evidence do we have if regulators ask questions?

That’s when security and compliance add-ons come into play.

Security Add-Ons for Business Premium – Avoiding an Unnecessary E5 Uplift

Microsoft now allows Business Premium customers to add enterprise-grade security and compliance capabilities without forcing a move to Enterprise licensing.

This is a critical option for Australian SMBs.

Microsoft Defender Suite (Business)

The Defender Suite focuses on detection and response, not just prevention. It adds:

• Extended Detection & Response (XDR)
• Advanced identity threat detection
• Visibility across endpoints, users and cloud apps

We typically recommend this where customers have:

• Hybrid or remote workforces
• Higher phishing or credential-theft risk
• No dedicated SOC but a need for better insight

Microsoft Purview Suite (Business)

Purview is about controlling and governing data. It introduces:

• Advanced Data Loss Prevention (DLP)
• Retention and records management
• Sensitivity labels and encryption
• Compliance reporting and auditing

This is especially relevant for:

• NDIS providers
• Professional services firms
• Health, education and regulated industries

Defender + Purview Combined

For regulated SMBs, this combined option often provides better value than jumping straight to Enterprise E5, while still significantly improving security posture and compliance readiness.

Moving from Microsoft 365 E3 to E5 – When it Actually Makes Sense

Many organisations are already on Microsoft 365 E3 and wonder whether E5 is worth the additional cost. The key difference isn’t productivity – it’s how you manage risk at scale.

E3 vs E5 – What Changes in Practice

For many enterprise customers, E5 replaces multiple third-party tools, which can significantly offset the licence cost.

Copilot for Microsoft 365 – Where AI Fits (and where it doesn’t)

AI can deliver real productivity gains — but only if the environment is ready.

Copilot for Business (with Business Premium)

Copilot works well when:

• SharePoint and OneDrive are structured
• Permissions are clean
• Data sprawl is under control

It enhances productivity across Outlook, Word, Excel and Teams, but it will surface whatever data users already have access to good or bad.

Copilot for Enterprise (E3/E5)

In enterprise environments, Copilot benefits from:

• Stronger Purview compliance controls
• Advanced identity governance
• Better data conditioning and auditability

This is why many Kloudify customers prepare their environment first, then roll Copilot out in a controlled way.

Kloudify’s advice (the part licensing guides don’t tell you)

• Don’t start with the most expensive licence – start with your risk profile
• Business Premium + add-ons is often the sweet spot for Australian SMBs
• E5 makes sense when it replaces tools and effort, not when it just adds cost
• Copilot should follow governance, not precede it

Licensing isn’t just a commercial decision – it’s an architectural one. When done properly, it simplifies your environment, improves security, and reduces long-term cost.

Need Help Choosing the Right Microsoft 365 Setup?

Kloudify works with Australian organisations to design secure, cost-effective Microsoft 365 environments – from Business Premium through to Enterprise E5 and Copilot readiness.

If you’d like:

• A tailored licence recommendation
• A security and compliance gap assessment
• Or help optimising your current Microsoft spend

👉 Get in touch with Kloudify for practical, vendor-aligned advice that puts your business first.