Microsoft 365 FundamentalsDescribe Microsoft 365 pricing and supportMedium
A Microsoft 365 administrator is evaluating the cost-effectiveness of their current Enterprise E3 subscription and considering an upgrade to Enterprise E5 for enhanced security and compliance features. The current E3 license costs $32.00 per user per month, and the E5 license costs $57.00 per user per month. If they have 1,000 users, what is the additional monthly cost for upgrading all users from E3 to E5?
- A$25,000.00
- B$32,000.00
- C$57,000.00
- D$89,000.00
Show answer & explanationAnswer & explanation
Correct answer: A. $25,000.00
First, calculate the per-user difference: $57.00 (E5) - $32.00 (E3) = $25.00. Then, multiply this difference by the number of users: $25.00 * 1,000 users = $25,000.00.
Why the other options are wrong
- B. This represents the current monthly cost of the E3 licenses for all users, not the additional cost of upgrading.
- C. This represents the total monthly cost of E5 licenses for all users, not the additional cost of upgrading.
- D. This represents the sum of the E3 and E5 costs for all users, which is not the additional upgrade cost.
Microsoft 365 Upgrade Cost Calculation
The process of determining the additional financial outlay required when moving from a lower-tier Microsoft 365 license to a higher-tier license.
- Calculated as (New License Cost - Old License Cost) * Number of Users.
- Typically done on a per-month or per-year basis.
- Helps justify the value of added features.
- Often involves prorating if upgrading mid-term.
Memory trick: Upgrade cost = New minus Old, times the crowd.