Gartner Research

How to Decide If You Can Choose Office 365 E1 Over Office 365 E3 to Optimize License Costs

Published: 22 May 2019

ID: G00368358

Analyst(s): Ben Jepson , Michael Silver , Pamela Wheelwright, Stephen White


Using existing perpetual Office licenses can create better leverage and drive up to 60% savings on license costs. Sourcing, procurement and vendor management leaders should use this guidance to decide if users can be licensed with Office 365 E1 before committing to Microsoft 365 bundles at renewal.

Table Of Contents
  • Key Challenges



  • Evaluate the Version of Your Perpetual Office Professional Plus Licenses to Determine Whether They Can Still Be Used
    • Rightsize to Optimize Costs
    • Nonstandard Configurations Raise Compliance Issues
  • Run a Technical Assessment to Establish Whether It’s Viable for Users to Start a New Agreement at E1 to Optimize License Costs
  • Calculate the Savings If Some or All Users Can Be Licensed With Office 365 E1 and Be Stepped Up to E3 Midterm, and Scale Up as Required
    • Use Step-Up SKUs to Optimize Costs
    • Cost Model the Step-Up SKU Option
    • Other Considerations

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