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MS-900 A company has 100 Microsoft 365 E3 users Practice Question
A company has 100 Microsoft 365 E3 users. They need to add advanced threat protection (Microsoft Defender for Microsoft 365 Plan 2) and advanced compliance (eDiscovery Premium) for all users. They want to minimize additional costs while keeping their existing E3 subscriptions. What is the most cost-effective licensing strategy?
⚠ Common exam trap
Candidates often assume upgrading to E5 is the only way to get both advanced security and compliance features, overlooking the cost-saving option of purchasing the specific E5 add-ons for existing E3 users.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Purchase both the Microsoft 365 E5 Compliance add-on and the Microsoft 365 E5 Security add-on
The Microsoft 365 E5 Security add-on provides Microsoft Defender for Office 365 Plan 2, and the Microsoft 365 E5 Compliance add-on provides eDiscovery Premium. Purchasing both add-ons for existing E3 users delivers the required advanced threat protection and advanced compliance capabilities without the full cost of upgrading to E5, making it the most cost-effective strategy.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Purchase both the Microsoft 365 E5 Compliance add-on and the Microsoft 365 E5 Security add-on
Why this is correct
These add-ons provide exactly the advanced compliance and security features needed without upgrading to E5.
- ✗
Upgrade all users to Microsoft 365 E5
Why it's wrong here
E5 includes the features but is more expensive than E3 plus the two add-ons.
- ✗
Purchase only the Microsoft 365 E5 Compliance add-on
Why it's wrong here
This add-on does not include Defender for Microsoft 365 Plan 2; that requires the Security add-on or E5.
- ✗
Purchase only the Microsoft 365 E5 Security add-on
Why it's wrong here
This provides Defender for Microsoft 365 Plan 2 but not eDiscovery Premium.
Go deeper
Related to this question
Learn chapter
Benefits of Microsoft Cloud
Key term
Microsoft Defender for Office 365
Microsoft Defender for Office 365 is a cloud-based email and collaboration security service that protects organizations against malicious threats like phishing, malware, and spam in email messages and Office 365 apps.
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MS-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MS-900 exam.