- A
Upgrade all users to Microsoft 365 E5
Why wrong: Upgrading to E5 includes many extra features (e.g., Microsoft Defender for Identity, Microsoft Cloud App Security) that increase cost unnecessarily.
- B
Purchase the Microsoft 365 E5 Security add-on for all users
Why wrong: E5 Security adds Defender for Microsoft 365 Plan 2 but does not add the eDiscovery and Audit capabilities.
- C
Purchase the Microsoft 365 E5 Compliance add-on for all users
Why wrong: E5 Compliance adds eDiscovery and Audit but does not include Defender for Microsoft 365 Plan 2.
- D
Purchase the Microsoft Defender for Microsoft 365 Plan 2 add-on and the Microsoft 365 E5 eDiscovery and Audit add-on separately
Both add-ons are available for E3, providing exactly the needed capabilities without paying for unnecessary features.
MS-900 Describe Microsoft 365 pricing and support Practice Question
This MS-900 practice question tests your understanding of describe microsoft 365 pricing and support. Read the scenario carefully and evaluate each option against the stated constraints before committing to an answer. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company has 250 users with Microsoft 365 E3 licenses. They need to add Microsoft Defender for Microsoft 365 Plan 2 (for advanced threat protection and automated investigation) and Microsoft 365 E5 eDiscovery and Audit capabilities for legal investigations. They want to keep their existing E3 subscriptions and minimize additional costs. What is the most cost-effective licensing approach?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue:
"minimum / minimize"Why it matters: Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
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 the Microsoft Defender for Microsoft 365 Plan 2 add-on and the Microsoft 365 E5 eDiscovery and Audit add-on separately
Option D is correct because it allows the company to keep their existing Microsoft 365 E3 licenses and purchase only the specific add-ons needed: Microsoft Defender for Office 365 Plan 2 (for advanced threat protection and automated investigation) and the Microsoft 365 E5 eDiscovery and Audit add-on (which provides advanced eDiscovery and audit capabilities). This avoids the cost of upgrading all users to E5 or purchasing broader suites like E5 Security or E5 Compliance, which include features not required.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Upgrade all users to Microsoft 365 E5
Why it's wrong here
Upgrading to E5 includes many extra features (e.g., Microsoft Defender for Identity, Microsoft Cloud App Security) that increase cost unnecessarily.
- ✗
Purchase the Microsoft 365 E5 Security add-on for all users
Why it's wrong here
E5 Security adds Defender for Microsoft 365 Plan 2 but does not add the eDiscovery and Audit capabilities.
- ✗
Purchase the Microsoft 365 E5 Compliance add-on for all users
Why it's wrong here
E5 Compliance adds eDiscovery and Audit but does not include Defender for Microsoft 365 Plan 2.
- ✓
Purchase the Microsoft Defender for Microsoft 365 Plan 2 add-on and the Microsoft 365 E5 eDiscovery and Audit add-on separately
Why this is correct
Both add-ons are available for E3, providing exactly the needed capabilities without paying for unnecessary features.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume the E5 Security add-on covers all security and compliance needs, but it does not include advanced eDiscovery and audit capabilities, which require the E5 Compliance add-on or separate purchase.
Detailed technical explanation
How to think about this question
Microsoft 365 E5 add-ons are designed to layer specific capabilities onto E3 without requiring a full suite upgrade. The Microsoft 365 E5 eDiscovery and Audit add-on provides advanced eDiscovery (e.g., predictive coding, review sets) and unified audit log retention up to 1 year (or 10 years with an additional license), while Defender for Office 365 Plan 2 includes automated investigation and response (AIR) and threat hunting. In a real-world scenario, a legal team needing only eDiscovery and audit for compliance investigations would not benefit from the full E5 Security suite, which includes Microsoft Defender for Identity and Cloud App Security.
KKey Concepts to Remember
- Read the scenario before looking for a memorised answer.
- Find the constraint that changes the correct option.
- Eliminate answers that are true in general but not in this case.
TExam Day Tips
- Watch for words such as best, first, most likely and least administrative effort.
- Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
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FAQ
Questions learners often ask
What does this MS-900 question test?
Describe Microsoft 365 pricing and support — This question tests Describe Microsoft 365 pricing and support — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Purchase the Microsoft Defender for Microsoft 365 Plan 2 add-on and the Microsoft 365 E5 eDiscovery and Audit add-on separately — Option D is correct because it allows the company to keep their existing Microsoft 365 E3 licenses and purchase only the specific add-ons needed: Microsoft Defender for Office 365 Plan 2 (for advanced threat protection and automated investigation) and the Microsoft 365 E5 eDiscovery and Audit add-on (which provides advanced eDiscovery and audit capabilities). This avoids the cost of upgrading all users to E5 or purchasing broader suites like E5 Security or E5 Compliance, which include features not required.
What should I do if I get this MS-900 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "minimum / minimize". Asks for the least resource use — fewest addresses, smallest subnet, lowest overhead. Eliminate over-provisioned options even if they would technically work.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
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Last reviewed: Jun 11, 2026
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