- A
Upgrade all users to Microsoft 365 E5
Why wrong: Upgrading to E5 adds many features beyond compliance (e.g., advanced security), which would be more costly than needed.
- B
Purchase the Microsoft 365 E5 Compliance add-on for all users
The E5 Compliance add-on is designed for E3 subscribers to gain exactly the compliance capabilities mentioned, including Communication Compliance and Insider Risk Management.
- C
Purchase the Microsoft 365 E5 eDiscovery and Audit add-on
Why wrong: This add-on only provides eDiscovery and advanced audit features, not Communication Compliance or Insider Risk Management.
- D
Replace E3 with Microsoft 365 Business Premium
Why wrong: Business Premium is a business plan suited for smaller organizations and does not include Communication Compliance or Insider Risk Management.
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 500 users with Microsoft 365 E3 licenses. They need to add Communication Compliance and Insider Risk Management for all users. They want to minimize additional costs while retaining their existing E3 subscriptions. 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 365 E5 Compliance add-on for all users
Microsoft 365 E5 Compliance is an add-on license for E3 that provides Communication Compliance, Insider Risk Management, and other advanced compliance features. Upgrading all users to E5 is more expensive if the advanced security features of E5 are not needed. The E5 eDiscovery and Audit add-on does not include Communication Compliance or Insider Risk Management. Business Premium plans are not compatible with enterprise E3 subscriptions and lack these features.
Key principle: NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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 adds many features beyond compliance (e.g., advanced security), which would be more costly than needed.
- ✓
Purchase the Microsoft 365 E5 Compliance add-on for all users
Why this is correct
The E5 Compliance add-on is designed for E3 subscribers to gain exactly the compliance capabilities mentioned, including Communication Compliance and Insider Risk Management.
Clue confirmation
The clue word "minimum / minimize" in the question point toward this answer.
Related concept
Static NAT maps one inside address to one outside address.
- ✗
Purchase the Microsoft 365 E5 eDiscovery and Audit add-on
Why it's wrong here
This add-on only provides eDiscovery and advanced audit features, not Communication Compliance or Insider Risk Management.
- ✗
Replace E3 with Microsoft 365 Business Premium
Why it's wrong here
Business Premium is a business plan suited for smaller organizations and does not include Communication Compliance or Insider Risk Management.
Common exam traps
Common exam trap: NAT rules depend on direction and matching traffic
NAT is not only about the public address. The inside/outside interface roles and the ACL or rule that matches traffic are just as important.
Detailed technical explanation
How to think about this question
NAT questions usually test address translation, overload/PAT behaviour, static mappings and whether the right traffic is being translated. Read the interface direction and address terms carefully.
KKey Concepts to Remember
- Static NAT maps one inside address to one outside address.
- PAT allows many inside hosts to share one public address using ports.
- Inside local and inside global describe the private and translated addresses.
- NAT ACLs identify traffic for translation, not always security filtering.
TExam Day Tips
- Identify inside and outside interfaces first.
- Check whether the scenario needs static NAT, dynamic NAT or PAT.
- Do not confuse NAT matching ACLs with normal packet-filtering intent.
Key takeaway
NAT direction and interface roles matter as much as the IP address mapping. Inside/outside designation controls which traffic is translated.
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
Got this wrong? Here's your next step.
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MS-900 NAT questions on configuration and troubleshooting.
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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 — Static NAT maps one inside address to one outside address..
What is the correct answer to this question?
The correct answer is: Purchase the Microsoft 365 E5 Compliance add-on for all users — Microsoft 365 E5 Compliance is an add-on license for E3 that provides Communication Compliance, Insider Risk Management, and other advanced compliance features. Upgrading all users to E5 is more expensive if the advanced security features of E5 are not needed. The E5 eDiscovery and Audit add-on does not include Communication Compliance or Insider Risk Management. Business Premium plans are not compatible with enterprise E3 subscriptions and lack these features.
What should I do if I get this MS-900 question wrong?
Review the four NAT address types (inside local, inside global, outside local, outside global), PAT port overload, and static vs dynamic NAT use cases. Then practise related MS-900 NAT questions on configuration and troubleshooting.
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?
Static NAT maps one inside address to one outside address.
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Last reviewed: May 17, 2026
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.
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