Hello everyone, Favad Qaisar here. As the CEO and Cloud Solutions Architect at Communication Square LLC, I’m often asked about the differences between Defender for Office 365 vs Microsoft Defender for Endpoint. Both are key security offerings from Microsoft, but they protect different aspects of your IT environment. In this blog post, I’ll break down what each product does, how they differ, and how they fit into various Microsoft 365 and Office 365 plans (E3, E5, etc.). By the end, you’ll understand the use cases for each, the licensing/pricing details, and how to choose the right solution for your organization. Let’s dive in.
What is Microsoft Defender for Office 365?
Key capabilities of Defender for Office 365 include features like Safe Attachments (which detonate email attachments in a sandbox to detect malware), Safe Links (which rewrite and scan URLs in emails and Office documents to block malicious links), anti-phishing policies (to detect impersonation and fraud attempts), and rich reporting on threats. It also offers investigation and response tools for security teams to hunt threats across email and collaboration content.
Plan Tiers: There are two plan levels for Defender for Office 365 – Plan 1 (P1) and Plan 2 (P2) – each suited to different needs:
- Defender for Office 365 Plan 1: This provides the core protections for email and collaboration. Plan 1 includes Safe Attachments, Safe Links, anti-phishing protection, protection for SharePoint/ OneDrive/Teams files, and real-time detection reports. Essentially, P1 covers prevention and detection of attacks across Exchange, Teams, OneDrive, and SharePoint. It’s a great starting point for organizations that need to secure Office 365 against phishing and malware. Pricing: Plan 1 is available as a standalone add-on for about $2.00 per user/month (annual commitment).
- Defender for Office 365 Plan 2: This is the more advanced tier. It includes everything in Plan 1 plus additional tools for investigation, hunting, automation, and user training. Plan 2 adds capabilities like Threat Explorer (also known as Explorer or advanced hunting – an interface for security teams to investigate threats in emails and files), Automated Investigation & Response (AIR) which can automatically investigate alerts and remediate issues, Campaign Views to see the scope of phishing campaigns, and Attack Simulation Training to run phishing simulations for end-user education. It also integrates with Microsoft’s XDR (extended detection and response) platform, correlating attacks across email and endpoints. Pricing: Plan 2 is about $5.00 per user/month (annual commitment) as a standalone. This higher tier is often included in top-tier Microsoft 365 plans (more on that below).
In summary, Defender for Office 365 is all about protecting data in Office 365 (Exchange, Teams, SharePoint, etc.) and your users from email-borne or file-borne threats. If your biggest concern is phishing emails or malicious attachments hitting your users, this is the solution to look at. Plan 1 suits basic needs (many SMBs start here), whereas Plan 2 is ideal for organizations that have a security operations team and need advanced investigation and automation capabilities.
What is Microsoft Defender for Endpoint?
Windows PCs, servers, and even Macs, Linux, iOS, and Android devices, providing a unified solution to secure your organization’s laptops, desktops, and mobile devices.
Key capabilities of Defender for Endpoint include next-gen anti-malware (using AI and cloud-delivered updates to stop viruses, ransomware, etc.), attack surface reduction (controls to harden endpoints, like blocking vulnerable behaviors or unauthorized applications), endpoint detection and response (sensor data from devices to detect suspicious behavior and breaches in real-time), automated investigation and remediation of incidents, and a central dashboard for security teams to alert and hunt threats across all endpoints. It also provides threat and vulnerability management to proactively identify and fix security weaknesses on your devices.
Plan Tiers: Defender for Endpoint also comes in two plan levels – Plan 1 (P1) and Plan 2 (P2):
- Defender for Endpoint Plan 1: Plan 1 offers a foundational set of endpoint security capabilities. This includes the core prevention features such as industry-leading anti-malware, firewall and network protection, device control (e.g., USB device usage control), application control, and attack surface reduction rules . It also can enforce device-based conditional access (making sure only healthy, compliant devices access your resources). Plan 1 is essentially focused on preventing attacks on the endpoint and providing the basic tools to secure your devices. However, it does not include the full EDR functionality or automated incident response – those are in Plan 2. For many organizations with more basic needs or that already have some SIEM/SOC in place, Plan 1 offers a solid replacement for legacy antivirus with some added modern protections. Pricing: Standalone, Plan 1 is roughly $3.00 per user/month (annual subscription). Full plan details are documented in the Defender for Endpoint Plan 1 overview
- Defender for Endpoint Plan 2: Plan 2 is the full featured product, equivalent to what was formerly known as Windows Defender ATP. It includes everything in P1, plus the advanced stuff: endpoint detection and response (EDR) capabilities to detect ongoing attacks, threat hunting tools, automated investigation and remediation for incidents, as well as the Threat & Vulnerability Management dashboard and threat intelligence features . In Plan 2, if a suspicious activity is detected on a device (say a possible malware outbreak or hacker behavior), the system will alert your security team and can even automatically take action (like isolating the machine, killing processes, etc.) to contain the threat. Plan 2 essentially enables a 24/7 watch on your endpoints for any signs of breach and helps respond to contain damage quickly. Pricing: Standalone, Plan 2 is about $5.20 per user/month (annual commitment) . Many larger enterprises get Plan 2 as part of their licensing (included in Microsoft 365 E5, discussed next).
In short, Defender for Endpoint focuses on protecting your organization’s devices/endpoints – ensuring laptops, servers, and mobile devices are not compromised by malware or hackers. If you worry about things like ransomware on PCs or need to detect if an attacker is moving through your network, this is the toolset you need. Small organizations might use Plan 1 as an advanced anti-virus, whereas larger ones or those with high security requirements will go for Plan 2 to get full EDR and response capabilities.
Key Differences Between Defender for Office 365 vs Microsoft Defender for Endpoint
Now that we’ve defined each, let’s summarize the differences in scope and functionality:
- Protection Scope: Defender for Office 365 protects cloud services and user communications – it secures your Exchange Online email, Teams chats, SharePoint/OneDrive files, etc., mainly focusing on threats delivered via email or shared links/files. In contrast, Defender for Endpoint protects the devices themselves – the laptops, desktops, servers, and mobile devices – detecting attacks that run on the operating system or device level (like a malware running on a PC or an attacker trying to exploit a laptop). Defender for Office 365 vs Microsoft Defender for Endpoint address different threat vectors: one is looking at content flowing through Office 365, the other is looking at what’s happening on the endpoint.
- Types of Threats Addressed: Defender for Office 365 is particularly strong against phishing emails, malicious attachments, unsafe URLs, and email compromise scenarios. It’s your go-to for stopping things like someone emailing your CFO a fake invoice with malware, or a phishing link that tries to steal passwords. Defender for Endpoint, on the other hand, is built to catch things like a suspicious program executing on a PC, a fileless malware attack in memory, ransomware encrypting files on a device, or an attacker’s tool running on a compromised machine. It provides visibility into behaviors on the endpoint after a user might have clicked something or if an attacker bypassed preventative defenses.
- Response Capabilities: With Defender for Office 365 (especially Plan 2), security teams can investigate phishing attacks, see which users clicked what, purge malicious emails from mailboxes, and even simulate attacks to train users. With Defender for Endpoint (Plan 2), security teams can investigate incidents on devices, get detailed forensics (which processes, files, and registry changes were involved in an attack), and automatically respond by isolating machines or removing malware. Essentially, one operates at the email/message level, and the other at the device process level when responding to incidents.
- Integration: Both products are part of Microsoft’s extended detection and response ecosystem (Microsoft 365 Defender suite). They can work together: for example, a phishing email detected by Defender for Office 365 can be correlated with an alert that the recipient’s device had malware activity, giving a combined view of an attack chain. However, you can deploy them independently. Some organizations might only use Defender for Office 365 (if their primary concern is email threats and they have another endpoint security solution), while others might only use Defender for Endpoint (if they want to keep their existing email security but improve endpoint security). Many use both for a comprehensive defense (especially since Microsoft 365 E5 includes both by default).
In summary: In the Defender for Office 365 vs Microsoft Defender for Endpoint debate; Defender for Office 365 secures the communication channels and data in Microsoft 365, whereas Defender for Endpoint secures the **devices and helps to detect/respond to active attacks on those devices. They address different layers of security, and together they provide a more complete “Microsoft 365 Defender” XDR solution – but you can mix and match depending on your needs.
Use Cases for Each Product
Let’s put this battle between Defender for Office 365 vs Microsoft Defender for Endpoint in practical terms. When would you use one vs. the other?
Use Cases for Microsoft Defender for Office 365:
- Phishing and Email Threat Protection: If your organization is plagued by phishing attempts or spear-phishing targeting your executives, Defender for Office 365 (Plan 1 or 2) is extremely useful. It will actively scan incoming emails for malicious content and links, often eliminating threats before they hit user inboxes. For example, a law firm dealing with confidential client data might deploy Defender for Office 365 to prevent phishing emails that attempt to trick staff into surrendering credentials or opening malware-laden attachments.
- Collaboration Tool Protection: Companies heavily using Microsoft Teams or SharePoint for file sharing benefit from Defender for Office 365 because it will scan files uploaded to Teams/SharePoint for malware. If a user accidentally shares an infected file, it can detect and neutralize it. This is important in today’s remote work environment where users share links and files frequently.
- Compliance and Reporting: Organizations that need to report on or audit threats (e.g., to satisfy cyber insurance or compliance) get value from the detailed reporting and Explorer in Plan 2. For instance, a healthcare provider might need to ensure email-borne malware was prevented and be able to document these events – Defender for Office 365 provides dashboards and reports to facilitate that.
- User Training (Plan 2): If you want to train your users against phishing, Plan 2’s Attack Simulation is a great tool. An example use case: a financial services company wants to reduce the risk of phishing, so they periodically send fake phishing emails to employees via the attack simulator and then track who clicks them, automatically enrolling those users in remedial training. This proactive approach helps build a human firewall.
- When Email Security Isn’t Enough: If you already have an email security gateway but use Microsoft 365, Defender for Office 365 can add another layer, especially with internal email protection (scanning emails sent within the organization) which many gateways don’t cover. It’s also tightly integrated with Exchange Online, which can simplify deployment compared to third-party solutions.
Use Cases for Microsoft Defender for Endpoint:
- Next-Gen Antivirus Replacement: Many organizations use Defender for Endpoint Plan 1 simply as a superior replacement for traditional antivirus on PCs. For example, a manufacturing company might deploy MDE P1 across all factory and office computers to get protection from viruses and ransomware, plus the ability to centrally monitor threats, instead of using an old-school antivirus that has no central visibility.
- Endpoint Detection & Response (EDR) for Advanced Threats: If your business has experienced or is concerned about sophisticated attacks (like zero-day exploits, nation-state threats, or targeted ransomware), Defender for Endpoint Plan 2 is a key tool. For instance, a tech company with valuable IP might use MDE P2 so their security team can detect if an attacker penetrates the defenses – the EDR will catch suspicious behaviors (like unusual PowerShell scripts or credential dumping tools running on a laptop) and alert the SOC. It’s basically a must-have for any organization that has a Security Operations Center (SOC) or uses a Managed Detection and Response service, because it feeds them the telemetry needed to catch stealthy threats.
- Incident Response and Containment: Suppose a user accidentally runs a piece of malware that isn’t immediately flagged. Defender for Endpoint P2 might detect the behavior (e.g., the malware trying to encrypt files or connect to a known malicious server) and generate an alert. Security teams can then use Defender to remotely investigate that machine (see what the malware did) and take action like isolating the machine from the network to stop the spread. In one real case, a client’s machine was hit by ransomware – Defender for Endpoint alerted our team and automatically isolated the device, limiting the damage to just that one machine. Such capabilities are invaluable for preventing widespread outbreaks.
- Threat and Vulnerability Management: Organizations aiming to be proactive can use the TVM features (Plan 2) to reduce their attack surface. For example, an enterprise might routinely check the Defender for Endpoint dashboard for known vulnerable applications installed on endpoints (say it flags that some machines have an outdated browser plugin or missing patches). This helps IT remediate those issues before attackers exploit them. It’s a continuous risk reduction approach.
- Zero Trust & Conditional Access: Defender for Endpoint (even P1) integrates with Azure AD Conditional Access. A use case here: you can require that any device accessing corporate data is deemed “secure” by Defender (no active threats, compliant with policies). If an endpoint has malware, Conditional Access can block it from accessing SharePoint or email. This is great for enforcing Zero Trust principles. For instance, a university could ensure that only devices that pass Defender security health attestation can access sensitive student records.
In many scenarios, both products are deployed together for comprehensive protection – one guarding the doors (email/files) and one guarding the interior (devices). If you have Microsoft 365 E5, you actually get an integrated experience where alerts from Office 365 and endpoints are correlated in a single dashboard (Microsoft 365 Defender portal). But even separately, each product addresses specific needs as highlighted above.
Licensing and Plan Inclusion (Which Microsoft 365/Office 365 Plans Include What)
One of the biggest points of confusion is how these products are licensed. Microsoft offers them both as standalone add-ons and bundles them into certain Microsoft 365 plans. Here’s a clear breakdown:
- Office 365 E3: Includes the core Office apps and cloud services but does not include Microsoft Defender for Office 365 (neither P1 nor P2) by default. Office 365 E3 users have Exchange Online Protection for basic email filtering, but no Safe Links/Safe Attachments – you would need to purchase Defender for Office 365 P1/P2 as an add-on if you want those capabilities. Office 365 E3 also does not include Defender for Endpoint – since that’s not an Office workload. Essentially, Office 365 E3 is lacking the advanced threat protection features; you’d have to layer them on.
- Office 365 E5: Office 365 E5 does include Defender for Office 365 Plan 2. In fact, Microsoft Defender for Office 365 Plan 2 is automatically part of Office 365 E5 (and the equivalent A5 for education) . That means if you have Office 365 E5, you already have the full advanced threat protection for email, Teams, SharePoint, etc. However, Office 365 E5 by itself still does not include Defender for Endpoint, because endpoint protection is tied to Windows licensing. (Office 365 E5 is
an “E5” for the services, but not an OS or device license.) So, an organization on Office 365 E5 would have top-notch email and collaboration security, but would need to add an endpoint security solution (either Defender for Endpoint standalone or upgrade to Microsoft 365 E5) for device coverage. - Microsoft 365 E3: Microsoft 365 E3 is a bundle that includes Office 365 E3 + Enterprise Mobility & Security E3 + Windows 10/11 Enterprise E3. As of early 2022, Microsoft 365 E3 now includes Defender for Endpoint Plan 1 at no extra cost . This was a big change Microsoft made to enhance security for E3 customers – effectively, every user with M365 E3 can use the core endpoint protection features (P1) on their devices. However, M365 E3 does not include Defender for Office 365; even though it’s a step up from Office 365 E3, the advanced email protection is not in there. You’d still need to buy Defender for Office 365 P1/P2 as an add-on if you want it with M365 E3 .
So, in summary for M365 E3: you get device protection (Defender for Endpoint P1 included), but
email protection is still add-on. - Microsoft 365 E5: Microsoft 365 E5 is the top-tier bundle that includes Office 365 E5, EMS E5, and Windows Enterprise E5. Consequently, it includes both Defender for Office 365 Plan 2 and Defender for Endpoint Plan 2 by default. If you have M365 E5, you’re getting the whole suite of advanced security – your users’ email and files are protected with Defender for Office 365 P2, and your devices are protected with Defender for Endpoint P2 (as part of the Windows E5 license). This is why many enterprise CIOs gravitate to E5 if they want an all-in-one licensing that covers everything. Microsoft 365 E5 essentially unlocks all the advanced security (plus things like Microsoft Defender for Identity and Cloud App Security, which are beyond our scope here). For our focus: with E5, you don’t need any add-on; you have the highest level of both solutions included.
- Microsoft 365 E5 Security Add-on: There is an add-on called Microsoft 365 E5 Security that some organizations purchase to enhance an E3 plan. This add-on includes the security components of E5 for those with E3 licenses. Specifically, Microsoft 365 E5 Security add-on will give an M365 E3 user Defender for Office 365 P2 and Defender for Endpoint P2, among other things . It’s basically carving out just the security bits of E5 (without the compliance or voice features) for a lower cost. So if you have Office 365 E3 or M365 E3 and you want both Defender for Office 365 and Endpoint at P2 level, you could either move to full E5 or just buy the E5 Security add-on. This add-on is also available to certain other plans (even Business Premium customers can now opt for it) to layer on more security.
- Microsoft 365 Business Premium (for SMBs): This is worth mentioning for small/mid-sized businesses (up to 300 users). Business Premium includes a bunch of security features out-of-the-box. It comes with Defender for Office 365 Plan 1 included, so SMBs get at least the P1 level protection for email/Teams . It also includes a solution called Microsoft Defender for Business, which is essentially a version of Defender for Endpoint geared for SMB (with capabilities very similar to
Defender for Endpoint Plan 2, such as endpoint detection and response, but it’s optimized for up to 300 users). So a Business Premium customer actually gets device protection akin to Plan 2 features and email protection of Plan 1 bundled in. This is a fantastic value for smaller organizations – effectively an “E5-lite” security package within a much cheaper license. For example, one of our clients with ~50 employees on Business Premium enjoys both robust email threat protection and endpoint security without having to buy any add-ons; it was all included in their license.
To clarify the inclusions, here’s a comparison table of which major plans include Defender for Office 365 and Defender for Endpoint:
Microsoft Plan | Defender for Office 365 | Defender for Endpoint |
---|---|---|
Office 365 E3 | Not included (no P1/P2; only basic Exchange Online Protection) | Not included (no endpoint ATP; need separate license) |
Office 365 E5 | Included – Defender for Office 365 Plan 2 | Not included (endpoint security not in O365 E5) |
Microsoft 365 E3 | Not included (requires Defender for Office 365 add-on if needed) | Included – Defender for Endpoint |
Microsoft 365 E5 | Included – Defender for Office 365 Plan 2 | Included – Defender for Endpoint |
Microsoft 365 E5 Security | Included – Defender for Office | Included – Defender for Endpoint |
Microsoft 365 Business | Included – Defender for Office | Included – Defender for Business |
As shown above, Office 365 E5 and Microsoft 365 E5 plans give you the most complete coverage (both P2’s included). If you’re an E3 customer, remember that Microsoft 365 E3 has endpoint P1, but you’ll need to add Office 365 ATP (Defender for O365) if you want email protection. And if you want the full P2 experience on E3, consider the E5 Security add-on or upgrading to E5.
Now, let’s talk briefly about pricing for these plans and add-ons, so you can factor that into your decisions.
Pricing Overview
- Office 365 E3: Approximately $23.00 per user/month (annual commitment). This is your base enterprise plan with no advanced Defender features included by default.
- Office 365 E5: Approximately $38.00 per user/month . This adds various advanced features to E3, most notably Defender for Office 365 Plan 2 is included in this price, as well as other perks like audio conferencing, etc. (But remember, endpoint P2 is not included in this $38; you’d need M365 E5 for that.)
- Microsoft 365 E3: About $36.00 per user/month . This bundle includes Office 365 E3 plus Windows E3 and EMS E3. Importantly, it includes Defender for Endpoint P1 as we discussed. It’s a jump in price from Office 365 E3, but you’re also getting the Windows Enterprise OS license and Intune, etc., along with the basic endpoint security.
- Microsoft 365 E5: Roughly $57.00 per user/month . This is the premium package including Office 365 E5, Windows E5, EMS E5. That $57 includes all the bells and whistles: Defender for Office 365 P2, Defender for Endpoint P2, Defender for Identity, Cloud App Security, Power BI Pro, and more. It’s a significant jump in cost, but many organizations justify it by the cost of purchasing equivalent security tools separately (for example, replacing a third-party email ATP and third-party EDR could cost as much or more).
- Defender for Office 365 Plan 1 (Standalone Add-on): If bought standalone, ~$2.00 per user/month (annual term).
- Defender for Office 365 Plan 2 (Standalone Add-on): ~$5.00 per user/month . (Often, organizations that just want to add advanced threat protection to, say, E3 licenses will opt for Plan 2 standalone rather than Plan 1, to get the full suite of capabilities).
- Defender for Endpoint Plan 1 (Standalone): ~$3.00 per user/month.
- Defender for Endpoint Plan 2 (Standalone): ~$5.20 per user/month . (Microsoft sometimes prices this around $5-$6; $5.20 is a commonly quoted figure, which annualizes to about $62.40 per user/year).
- Microsoft 365 E5 Security Add-on: This add-on (which includes Defender for Office 365 P2, Defender for Endpoint P2, and some other E5 security components like Identity protection) costs around $12.00 per user/month (on top of E3 licenses). It’s basically the difference between E3 and E5 in security features. (Microsoft doesn’t always list this publicly in simple terms, but that’s an approximate figure; often it’s sold via enterprise agreements).
- Microsoft 365 Business Premium: $22.00 per user/month . I list this here because for SMBs, that single $22 license includes Office apps plus Defender for Office 365 P1 and Defender for Business (endpoint). It’s extremely cost-effective for what you get, compared to having to layer things onto cheaper plans.
Keep in mind, these are standard prices with annual commitments. Volume licensing or CSP agreements might offer discounts, and nonprofits/education have different pricing. But for planning purposes, the above gives you an idea of cost. For example, if you have 100 users on Office 365 E3 ($23 each) and you want to secure email and endpoints, you could either: add Defender for Office P2 ($5) and Defender for Endpoint P2 ($5.2) standalone to each – which totals around an extra $10 per user – making it effectively ~$33/user; or you could move to Microsoft 365 E5 at $57/user which gives a lot more beyond just those two products. There’s also the middle route of Microsoft 365 E3 ($36) + E5 Security add-on (~$12) = ~$48/user, giving you E5-level security without some of the other E5 features like Power BI. The decision often comes down to what combination of features you need and cost-effectiveness, which leads to the next section: a couple of real-world examples.
Real-World Examples (Case Studies)
To illustrate how organizations choose between Defender for Office 365 and Defender for Endpoint (or both), let me share a few simplified case studies based on Communication Square’s deployments:
- Case Study 1: Mid-Size Professional Services Firm (Email Security Focus) – A 200-employee consulting firm was primarily concerned about phishing attacks after a couple of near-miss incidents where employees received convincing fake emails. They were on Office 365 E3 licenses, which didn’t include advanced email protection. After assessing their needs, we deployed Microsoft Defender for Office 365 Plan 2 as an add-on for all users. This immediately gave them enterprise-grade phishing and malware protection on email. Within the first month, the system caught multiple credential-harvesting phishing emails that users might have fallen for. We also configured Attack Simulation Training (part of Plan 2) to run phishing drills. The result was a dramatic decrease in click-through rates on phishing tests as users became more savvy. The firm wasn’t as worried about endpoint threats (they had a third-party desktop AV), so they decided to address the urgent pain point (email) first with Defender for Office 365. This targeted approach – securing the communication layer – was cost-effective and significantly reduced their risk of a breach via email. As their IT strategy evolved, they later considered moving to Microsoft 365 E3 with the E5 Security add-on to also get Defender for Endpoint, achieving a fuller Zero Trust posture.
- Case Study 2: Enterprise with High Security Requirements (Comprehensive E5 Deployment) – A financial services company with 500+ employees took a more holistic approach. They handle sensitive financial data and wanted top-notch security across the board. After evaluating solutions, they chose to go with Microsoft 365 E5 for all users, giving them both Defender for Office 365 P2 and Defender for Endpoint P2 included (along with many other security and compliance features). This all-in-one approach meant that their security team could monitor threats from a unified Microsoft 365 Defender dashboard. Shortly after deployment, during routine monitoring, their team received an alert (from Defender for Endpoint) about suspicious activity on a user’s laptop – a sign of a possible ransomware infection starting. At nearly the same time, Defender for Office 365 had flagged an email that same user received as having a malware attachment (it was a new ransomware variant). Because they had the full E5 stack, the two systems together painted the whole picture: a user clicked an email attachment, and then on the device, that file began executing ransomware behavior. The security team, using Defender for Endpoint, remotely isolated the machine and prevented the attack from spreading. This example shows the power of having an integrated defense – and it justified the investment in E5. The CIO of that company was able to report to the board that an attempted breach was automatically contained with minimal impact, which would not have been possible without the combined capabilities of both Defender for Office 365 and Defender for Endpoint in place.
- Case Study 3: Small Business (SMB) Maximizing Value – A smaller client (50 users) in the healthcare sector was looking for affordable security. They opted for Microsoft 365 Business Premium, which, as noted, includes Defender for Office 365 P1 and Defender for Business (endpoint). We helped them enable and configure these security features. In practice, they gained nearly the same protections as larger enterprises: phishing emails are now being filtered out or detonated in sandbox (though Plan 1 doesn’t have Attack Simulation, it still has Safe Links/ Attachments), and their Windows 10 PCs are onboarded into Defender for Business which gives them EDR-like capabilities. In one instance, an employee downloaded an unusual file from a USB drive; Defender for Business detected it as malicious and quarantined it. Meanwhile, the IT admin gets weekly reports of threats stopped by email and on devices. For an SMB that cannot afford separate $5 add-ons for everything, Business Premium’s included security features proved to be a huge win. Essentially, by choosing the right license, they got both solutions bundled cost- effectively, and we as their Microsoft partner manage it as part of our service. This case highlights that even smaller organizations can leverage Defender for Office 365 and Defender for Endpoint without breaking the bank, by using the Business Premium suite (and it’s something our Communication Square team frequently recommends to SMB clients).
- Case Study 4: Targeted Deployment for Specific Users – Not every user in an organization may need the full Defender for Endpoint P2, for example. We had a client – a multinational company – where most users were on Microsoft 365 E3 (with Defender for Endpoint P1 included), but they had a high-risk group of about 50 developers and admins who they wanted on the P2 plan for endpoints (for advanced hunting and response due to their privileged access). Rather than upgrading everyone to E5, we helped them acquire Defender for Endpoint P2 licenses just for those 50 users and enabled a mix: most devices report into the P1 service, and those belonging to the sensitive roles report into P2 with full EDR. This “layered” approach met both security and budget requirements. Similarly, some organizations give only certain users Defender for Office 365 P2 (e.g., executives and finance, who are most targeted by phishing, get the full capabilities with attack simulation training, while other staff might have just P1). Microsoft allows mix-and-match licensing, so you can allocate the advanced features to the people who need them most – something to keep in mind if you’re cost-sensitive. We often work with CIOs to identify those user segments and plan licensing accordingly.
These examples show that the choice between Defender for Office 365 and Defender for Endpoint isn’t an either/or – it’s about where your risks are and what existing security you have. An email-centric attack concern leads to deploying Defender for Office 365. A device breach concern leads to Defender for Endpoint. And if, like most, you worry about both, you plan for both (via an E5 plan or combining add-ons).
At Communication Square, we’ve deployed these solutions in various combinations. Our general guidance to clients is to aim for coverage of both email and endpoint threat vectors, because they are complementary. Microsoft’s licensing gives flexibility to do this gradually (add what you need) or all at once via an E5 bundle.
Conclusion
Choosing between Microsoft Defender for Office 365 and Microsoft Defender for Endpoint comes down to understanding your threat landscape and licensing situation.
- If your organization lives in email and Office 365 and you’re seeing phishing, BEC (Business Email Compromise) attempts, or you simply lack an advanced email security solution, Defender for Office 365 is a no-brainer to protect your users and data in the cloud. It’s easy to justify when one successful phishing attack can cost millions, whereas an add-on of $2-$5/user is trivial by comparison.
- If your concern is more about device security, ransomware, or targeted attacks on your endpoints, then Defender for Endpoint should be on your radar. Replacing or augmenting your traditional antivirus with this gives you a modern, cloud-powered defense and EDR capabilities that are increasingly necessary against today’s threats.
- For many, the answer to “which one do I need?” is both, as they address different (and equally important) angles. This is why Microsoft 365 E5 includes both – it’s designed to provide an end-to- end shield. While E5 has a higher cost, it often consolidates tools (email security, endpoint security, CASB, etc.) that you would otherwise buy separately. We often help customers do a cost-benefit analysis of E5 vs. a la carte add-ons; in many cases, an E5 or E5 Security suite ends up simplifying management and integration, which has its own value beyond just license cost.
In terms of plan inclusion: remember that Office 365 E5 already gives you Defender for Office 365 P2, and Microsoft 365 E3 now gives you Defender for Endpoint P1. To get the full capabilities of both without limitation, you’d be looking at Microsoft 365 E5 (or the E5 Security add-on). Smaller orgs should leverage Business Premium which packs a lot of punch for the price.
From a sales perspective (for our salesperson readers), the key is to listen to what the client needs to protect. If they say “email threats are killing us,” start with Defender for Office 365. If they say “we’re worried about ransomware on our PCs,” point to Defender for Endpoint. And highlight how these solutions work even better together – the whole is greater than the sum of its parts when it comes to Microsoft’s XDR approach. Also, use the licensing flexibility: upselling from E3 to E5 or E5 Security is a strategic sale that can solve multiple pain points at once.
Finally, in the voice of experience: implementing these solutions, we at Communication Square have seen firsthand the preventative value they provide. It’s not just theory – real attacks have been stopped in their tracks by these tools. For any CIO or IT admin on the fence, the question to ask is: Can we afford NOT to have robust protection for both our communication channels and our endpoints? In 2025’s threat landscape, a layered defense is no longer a luxury, it’s a necessity. Microsoft Defender for Office 365 and Defender for Endpoint are two pillars of that defense that integrate seamlessly if you choose to leverage both.
Next Steps: If you need help deciding on the right plan or implementing these defender solutions, feel free to reach out. As a Microsoft Solutions Partner, we’ve guided organizations of all sizes through enhancing their security with Microsoft 365. Whether it’s configuring policies for optimal protection or running user awareness workshops alongside these tools, we’re here to ensure you get the most out of your investment in security. Stay safe out there!
Last Updated 2 days ago