Microsoft 365 FundamentalsDescribe Microsoft 365 pricing and supportHard
A Microsoft 365 administrator is evaluating the cost-effectiveness of their current Enterprise E3 licenses for 1,000 users. They are considering upgrading to Enterprise E5 for enhanced security, compliance, and analytics features. The current E3 license costs $32.00 per user per month. The E5 license costs $57.00 per user per month. If they decide to upgrade all 1,000 users to E5, what is the monthly increase in their Microsoft 365 subscription cost?
- A$57,000.00
- B$32,000.00
- C$89,000.00
- D$25,000.00
Show answer & explanationAnswer & explanation
Correct answer: D. $25,000.00
First, calculate the cost difference per user: $57.00 (E5) - $32.00 (E3) = $25.00. Then, multiply this per-user increase by the total number of users: $25.00 * 1,000 users = $25,000.00.
Why the other options are wrong
- A. This is the new total monthly cost for E5, not the increase.
- B. This is the current total monthly cost for E3, not the increase.
- C. This is the sum of the E3 and E5 per-user costs multiplied by 1,000, which is incorrect for the increase.
Microsoft 365 Upgrade Cost Calculation
Determining the additional financial outlay when upgrading existing Microsoft 365 licenses to a higher-tier plan, calculated by the difference in per-user cost multiplied by the number of users.
- Calculate the difference in per-user monthly cost between the old and new license.
- Multiply this difference by the total number of users being upgraded.
- This calculation represents the 'increase' in cost, not the new total cost.
Memory trick: Upgrade cost is the 'difference' in price for 'all' your users.