Transitioning to Microsoft 365 E5: A Guide for Enterprises
Consolidating Security, Compliance, and Productivity: Why Microsoft 365 E5 Could Replace Dozens of Third-Party Security Tools in Your Enterprise Stack
In today’s fast-paced digital landscape, enterprises are constantly seeking ways to streamline operations, enhance security, and reduce costs. Microsoft 365 E5 stands out as a comprehensive suite that combines productivity tools, advanced security, compliance features, and analytics into a single platform. As of late 2025, with evolving cyber threats and regulatory demands, transitioning to E5 can be a strategic move for organizations looking to consolidate their tech stack. This blog post explores what enterprises should know about Microsoft 365 E5 and highlights third-party products it can potentially replace across key categories, based on its integrated capabilities.
What Enterprises Should Know About Microsoft 365 E5
Microsoft 365 E5 is more than just an upgrade from lower-tier plans like E3—it’s a powerhouse designed for large organizations with complex needs. At its core, E5 includes:
Productivity Suite: Full access to Office apps (Word, Excel, PowerPoint, etc.), Microsoft Teams for collaboration, and tools like Microsoft Loop for brainstorming, Planner for task management, and 1-5+ TB of cloud storage per user.
Advanced Security and Analytics: Built-in AI-powered features for threat detection, extended detection and response (XDR), antivirus, antimalware, phishing protection, and hybrid identity protection.
Compliance and Governance: Tools for data security, regulatory compliance, information protection, and insider risk management.
Identity and Access Management: Unlimited users with least-privilege access controls.
Endpoint and Device Management: Unified management for devices, including Windows Enterprise.
AI Integration: Secure AI chat powered by large language models and scalable analytics with Power BI.
Key benefits include seamless integration across Microsoft services, reducing silos and improving efficiency. For instance, features like Microsoft Entra ID (formerly Azure AD Premium P2), Microsoft Intune, Microsoft Defender for Endpoint, and Microsoft Sentinel work together for end-to-end protection. Enterprises can expect cost savings by consolidating vendors, potentially retiring multiple third-party tools while gaining unified visibility and automated responses. Additionally, E5 empowers AI transformation by leveraging tools like Microsoft Defender for Cloud Apps (MDCA) and Microsoft Purview to accelerate adoption of Microsoft Copilot and other AI initiatives. These features ensure robust data loss prevention (DLP), governance, and control over shadow IT AI products, allowing organizations to innovate securely without exposing sensitive data.
However, transitioning isn’t without challenges. Organizations should assess their current infrastructure for compatibility, plan for data migration, and invest in training to maximize adoption. Licensing costs can be higher upfront, but ROI often comes from reduced tool sprawl and enhanced security posture. It’s also wise to conduct a proof-of-concept to ensure E5 aligns with specific needs, especially in hybrid environments.
New Features Announced at Microsoft Ignite 2025
At Microsoft Ignite 2025, several enhancements were unveiled that further solidify E5’s role in enterprise security and management. Notably, Microsoft Security Copilot is now included at no extra cost for all Microsoft 365 E5 subscribers. This AI-powered security assistant integrates directly into key E5 components like Defender, Entra, Intune, and Purview, featuring 12 new built-in agents that automate workflows, accelerate threat response, and reduce manual efforts in security operations. Security Copilot provides expert guidance through embedded chat in Intune and other tools, enabling proactive threat hunting, incident remediation, and policy optimization.
Additionally, advancements in the Microsoft Intune Suite—now more deeply integrated with E5—include AI agents for endpoint management, such as automated device compliance checks and troubleshooting. These updates build on Intune’s existing capabilities, embedding Security Copilot for real-time assistance in daily operations.
These features transform enterprise security posture by consolidating AI-driven security intelligence into the E5 suite, potentially eliminating third-party applications like specialized AI security platforms (e.g., Darktrace or Vectra AI for threat detection), security orchestration tools (e.g., Splunk SOAR or Palo Alto Cortex XSOAR), and endpoint management add-ons. By unifying these under E5, organizations achieve faster mean-time-to-response, reduced vendor complexity, and a more resilient defense against sophisticated threats, all while lowering total cost of ownership.
Add-Ons to Enhance Microsoft 365 E5: Focus on Microsoft Entra Suite
While Microsoft 365 E5 provides a robust foundation, enterprises can extend its capabilities with add-ons like the Microsoft Entra Suite, which bundles advanced identity and network access features. Priced separately, the Entra Suite complements E5 by addressing identity governance, secure access, and verification needs in zero-trust environments.
Identity Governance and Administration (IGA) and Entitlement Management: Entra Suite includes comprehensive IGA tools for automating access lifecycle workflows, entitlement management, access reviews, and privileged identity management. Recent updates from 2025 include dynamic approvals, verified ID integration for entitlement settings, support for eligible group memberships, and lifecycle workflows for inactive users. This can replace third-party IGA solutions like SailPoint IdentityNow, Okta Identity Governance, or Saviynt, streamlining access requests, reviews, and deprovisioning while ensuring compliance.
Microsoft Entra Verified ID: A decentralized identity solution for issuing and verifying digital credentials, integrated with entitlement management. It enables secure, privacy-preserving identity verification for scenarios like employee onboarding or partner access. Replacements include tools like Ping Identity or Auth0 for verified credentials, reducing reliance on centralized identity providers.
Microsoft Entra Internet Access: A secure web gateway (SWG) that provides cloud-native protection for internet traffic, including threat protection, URL filtering, and data loss prevention for web access. This can supplant solutions like Zscaler Internet Access or Cisco Umbrella, enforcing zero-trust policies for public internet usage.
Microsoft Entra Private Access: Delivers zero-trust network access (ZTNA) for private apps and resources, replacing traditional VPNs with app-specific, identity-based access. It can replace products like Palo Alto Prisma Access or Citrix Gateway, providing granular control and reducing attack surfaces in hybrid setups.
Enabling Secure SSO to SaaS Applications with Entra and MDCA
Microsoft Entra ID, a core component enhanced by the Entra Suite, enables single sign-on (SSO) to thousands of SaaS applications through its extensive app gallery or custom integrations, allowing users to access multiple apps with one set of credentials while maintaining centralized control. This SSO capability is secured by Conditional Access policies, which evaluate signals such as user risk, sign-in risk, device compliance, location, IP address, and application context to enforce actions like requiring multi-factor authentication (MFA), blocking access, or limiting sessions. For example, policies can block high-risk sign-ins or require compliant devices for sensitive apps, providing a risk-based approach to security.
Integrating with Microsoft Defender for Cloud Apps (MDCA)—included in E5—Entra automatically onboards SSO-enabled SaaS apps for advanced Conditional Access app control, routing sessions through MDCA for real-time monitoring and enforcement. MDCA acts as a cloud access security broker (CASB), offering visibility into app usage, threat protection, data loss prevention, and governance for most SaaS apps, even those not natively integrated with Entra. This combination ensures secure access to apps like Salesforce, Box, or ServiceNow, detecting anomalies, preventing data exfiltration, and applying session controls without additional third-party tools.
By layering the Entra Suite onto E5, enterprises gain a holistic zero-trust framework, further consolidating tools and enhancing security without multiplying vendors.
Third-Party Products Microsoft 365 E5 Can Replace
One of the biggest draws of E5 is its ability to supplant specialized third-party solutions, simplifying your security ecosystem. Below, we break it down by category, focusing on what E5 provides and common replacements. Note that full replacement depends on your organization’s scale and requirements—always evaluate thoroughly.
Identity Management
Microsoft 365 E5 includes Microsoft Entra ID P2, offering advanced identity protection, privileged identity management, conditional access, and identity threat detection and response (ITDR). This can replace standalone identity and access management (IAM) tools, reducing the need for separate providers.
Replacements: OneLogin, Okta, Ping Identity, Auth0, or CyberArk for privileged access. E5’s unified approach often provides equivalent or better integration with Microsoft ecosystems, potentially lowering costs.
Identity Threat Detection
Building on identity management, Microsoft Defender for Identity (MDI) in E5 is a cloud-based solution that monitors on-premises Active Directory signals to detect advanced threats, compromised identities, and malicious insider actions. It identifies attacks like reconnaissance, compromised credentials (e.g., Pass-the-Ticket, Pass-the-Hash), lateral movement, and domain dominance, providing automated remediation and integration with Microsoft Defender XDR.
Replacements: Varonis DatAdvantage, Stealthbits (now Netwrix), Quest Change Auditor, or identity-focused modules in Splunk or Darktrace. MDI’s AI-driven detection can consolidate identity threat monitoring, especially in hybrid environments, replacing legacy on-premises tools like Microsoft’s former Advanced Threat Analytics.
Endpoint Management
E5’s Microsoft Intune handles mobile device management (MDM) and mobile application management (MAM), while Microsoft Defender for Endpoint (MDE) delivers endpoint detection and response (EDR) and XDR capabilities, including threat hunting and automated remediation.
Replacements for MDM: VMware Workspace ONE (formerly AirWatch), ManageEngine Mobile Device Manager Plus, or Jamf for Apple devices.
Replacements for EDR/XDR: CrowdStrike Falcon, SentinelOne, Carbon Black, or Palo Alto Cortex XDR. MDE’s integration with other Microsoft tools can provide broader visibility without additional licensing.
Security Information and Event Management (SIEM)
Microsoft Sentinel, included in E5, is a cloud-native SIEM with built-in analytics, automation, and integration across Microsoft services and third-party sources.
Replacements: Splunk, IBM QRadar, or SentinelOne Vigilance (though SentinelOne is more EDR-focused). Sentinel’s pay-for-what-you-use model and AI-driven insights can be more cost-effective for Microsoft-centric environments.
Email and Collaboration Security
Microsoft Defender for Office 365 provides advanced threat protection against phishing, malware, and business email compromise, with features like safe links and attachments.
Replacements: Proofpoint, Mimecast, or Barracuda Email Security. This can consolidate email defenses, especially for Outlook and Teams users.
Cloud App Security and Visibility
Microsoft Defender for Cloud Apps (MDCA) acts as a cloud access security broker (CASB), offering shadow IT discovery, app risk assessment, and data protection across SaaS apps. It identifies over 31,000 cloud apps, evaluates risks, and enables policies to block unsanctioned usage, including shadow AI tools. MDCA integrates with Microsoft Defender XDR for threat response and DLP to prevent data exfiltration. Its power in accelerating AI transformation lies in discovering and governing shadow AI apps (e.g., unsanctioned generative AI tools), ensuring only approved AI like Microsoft Copilot is used while maintaining visibility and control to avoid data risks.
Replacements: Netskope, Zscaler, or McAfee MVISION Cloud. It integrates natively with Entra ID for better control over cloud access.
Data Loss Prevention (DLP) and Information Protection
Microsoft Purview in E5 includes DLP policies, sensitivity labeling, and governance for data across endpoints, email, and cloud storage. Purview’s AI-enhanced capabilities classify data automatically, detect risks, and enforce policies in real-time. It accelerates AI transformation by integrating with Microsoft Copilot to prevent sensitive data from being included in AI prompts or outputs, using DLP rules to block oversharing and ensure compliance during AI interactions. This enables safe Copilot deployment while governing data for broader AI initiatives, reducing risks from shadow IT AI by alerting on unauthorized data access or exfiltration.
Replacements: Symantec DLP, Forcepoint DLP, or Digital Guardian. Automated classification and protection can reduce manual oversight.
Compliance and eDiscovery
E5’s Microsoft Purview also covers advanced auditing, eDiscovery, insider risk management, and compliance scoring.
Replacements: Relativity for eDiscovery, Varonis for data governance, or Proofpoint Insider Threat Management. This helps meet regulations like GDPR or HIPAA with built-in tools.
Final Thoughts
Transitioning to Microsoft 365 E5 can transform an enterprise’s approach to productivity and security by replacing fragmented third-party tools with a cohesive, Microsoft-native ecosystem. With added emphasis on AI-ready features like MDI for identity threats, MDCA for shadow AI control, Purview for DLP in Copilot workflows, and new Ignite 2025 additions like Security Copilot and Intune enhancements, E5 not only secures but accelerates AI adoption. While it may not eliminate every specialized solution—especially in highly customized setups—the potential for cost savings, simplified management, and stronger defenses is significant. Before making the switch, consult with Microsoft partners or conduct an audit to map your current tools against E5’s offerings. With proper planning, E5 can position your organization for long-term resilience in an increasingly threat-filled world.
Disclaimer: The comparisons in this post are high-level and focus on core functionalities where Microsoft 365 E5 capabilities overlap with the primary purpose of the mentioned third-party products. This is not a detailed, feature-by-feature (apple-to-apple) comparison, as individual product editions, custom configurations, and specific use cases can vary significantly. A thorough assessment, ideally with Microsoft partners or security experts, is recommended to accurately map your existing security application portfolio to E5 components. Such an evaluation can identify opportunities for consolidation, highlight any gaps that may require retaining certain apps (e.g., for legacy systems or niche requirements), and plan for deferred migrations during broader modernization and transformation initiatives.