Information Technology Navigator

As organizations continue to prioritize data governance, compliance, and information protection, Microsoft Purview has emerged as a powerful suite of tools to meet these needs. But not all Purview capabilities are created equal.

In this article, we’ll break down the primary differences between Microsoft 365 E3 and Microsoft 365 E5 Purview features, helping you understand what’s available out-of-the-box with E3 and what additional value E5 brings to the table.

Baseline Capabilities with E3

Microsoft 365 E3 includes foundational Purview features that are sufficient for many organizations just beginning their compliance journey. For those working toward Cybersecurity Maturity Model Certification (CMMC), these E3 capabilities provide essential building blocks to address basic regulatory requirements. Core tools such as Data Loss Prevention (DLP), sensitivity labels, and standard audit logging support the safeguarding of Controlled Unclassified Information (CUI) and help demonstrate initial compliance with CMMC Level 1 and Level 2 practices. As organizations mature, they can build upon these features to meet more advanced CMMC requirements through additional controls and enhanced monitoring available in higher Microsoft 365 tiers.

Data Loss Prevention (DLP)

• Data Loss Prevention (DLP) capabilities within Microsoft 365 E3 play a crucial role in supporting organizations working to meet CMMC requirements. With E3, organizations can create and enforce DLP policies across Exchange Online, SharePoint Online, and OneDrive for Business. These policies help prevent the accidental or unauthorized sharing of Controlled Unclassified Information (CUI) by automatically detecting and restricting sensitive data transfers based on predefined rules and patterns.
• While E3 does not include endpoint DLP or advanced analytics, its core DLP features enable organizations to monitor and control data flows within cloud-based email and collaboration platforms. This supports CMMC Level 1 and Level 2 requirements by ensuring that sensitive information is consistently protected and that organizations can demonstrate proactive measures to safeguard CUI as part of their compliance journey.

Information Protection Labels

• In Microsoft 365 E3, sensitivity labels provide organizations with tools to classify and protect Controlled Unclassified Information (CUI) as part of their efforts to meet Cybersecurity Maturity Model Certification (CMMC) requirements. E3 enables manual labeling, allowing users to apply sensitivity labels to emails and documents based on their content and intended level of protection. Additionally, basic auto-labeling features are available, which automatically apply labels to content that matches predefined patterns or policies. These capabilities help safeguard that sensitive data is consistently identified and secured throughout the organization, supporting regulatory compliance and safeguarding CUI.

• While Microsoft 365 E3 offers fundamental sensitivity labeling and encryption features, there are notable limitations compared to higher-tier licenses. Auto-labeling capabilities are basic and may not support advanced scenarios, such as applying labels based on complex conditions or leveraging machine learning for content classification. E3 does not include auto-labeling for files stored in SharePoint Online or OneDrive for Business, nor does it provide endpoint-based protection for documents outside the cloud environment. Organizations seeking more granular control, automated labeling at scale, or integration with endpoint data loss prevention (DLP) will need to consider upgrading to higher Microsoft 365 tiers to fully address CMMC Level 2 and Level 3 requirements.

Advanced Capabilities with E5

Microsoft 365 E5 unlocks the full potential of Microsoft Purview, offering advanced tools for organizations with complex regulatory, security, and data governance requirements.

Advanced Data Loss Prevention

• Monitor and protect sensitive data on Windows 10/11 devices. These advanced capabilities are crucial for organizations that must proactively safeguard sensitive information, address evolving regulatory demands, and mitigate risks before they become costly incidents.
• Insights into policy matches and user behavior. Leveraging Endpoint DLP analytics gives organizations deep visibility into how sensitive data is used and accessed on devices, enabling them to quickly identify potential risks, spot unusual behaviors, and make informed decisions to strengthen their security posture and regulatory compliance.

Auto-Labeling & Machine Learning

• Automatically identify sensitive content using trainable classifiers. This is particularly helpful for identifying information that doesn’t always follow the same structured data type.
• Create automatic labeling policies based on content and context. As your data volumes rapidly scale, your organization’s ability to identify & tag data should be in lockstep.

Insider Risk Management

• Detect risky user behavior using signals from across Microsoft 365. These advanced features empower organizations to address growing cybersecurity threats and regulatory requirements, ensuring both protection of sensitive data and compliance with industry standards.
• Custom policies for data leaks, security violations, and more. By leveraging custom policies alongside the robust features of Microsoft 365 E5, organizations can proactively safeguard their most critical data, adapt to evolving threats, and achieve true compliance and security assurance that generic, one-size-fits-all solutions simply cannot provide.

Communication Compliance

• Monitor internal communications for policy violations (e.g., harassment, sensitive data sharing). Monitoring internal communications for policy violations is essential to proactively prevent issues such as harassment and unauthorized sharing of sensitive information. This helps organizations foster a safer, more compliant workplace environment and avoid costly legal or reputational consequences.

Advanced Audit

• CMMC requires organizations to demonstrate strong controls over the monitoring, detection, and investigation of security incidents, especially those involving controlled unclassified information (CUI). Extended audit log retention ensures that organizations can provide evidence of activity over time, support incident investigations, and respond to regulatory inquiries, which are critical components of CMMC compliance.

eDiscovery (Advanced)

• Advanced eDiscovery in Microsoft 365 enables organizations to hold, search, and export content, supporting CMMC’s requirements for managing and protecting Controlled Unclassified Information (CUI). These capabilities ensure that data related to security incidents can be efficiently located and produced for audits or regulatory inquiries, strengthening compliance and accountability. By leveraging eDiscovery, organizations can demonstrate robust evidence management in alignment with CMMC controls.

Choosing the Right License

For organizations pursuing Cybersecurity Maturity Model Certification (CMMC), especially at Level 2 or higher, Microsoft 365 E5 provides critical capabilities that go beyond what's available in E3. Features like Insider Risk Management, Communication Compliance, and Advanced Audit are essential for meeting requirements around data access monitoring, insider threat detection, and secure communication controls. Endpoint DLP and auto-labeling with machine learning also support key CMMC practices related to safeguarding Controlled Unclassified Information (CUI). While E3 offers a solid starting point, E5 enables a more comprehensive and automated compliance posture aligned with CMMC expectations.

Conclusion

Microsoft Purview is a product brand family of solutions and understanding the differences is key to optimizing its value. Whether you’re starting a new enclave or considering enhancements to your existing environment, Daymark can help align capabilities to your business requirements. Reach out here to speak with us.