- A
Microsoft 365 E5 Compliance add-on
Why wrong: E5 Compliance adds advanced compliance features like communication compliance and more, but the primary need (unlimited archive and 10-year retention) can be met with a simpler add-on.
- B
Exchange Online Archiving for Exchange Online Plan 2
This add-on provides unlimited archive storage for users who already have Exchange Online Plan 2 (included in E3). Retention policies can enforce 10-year retention.
- C
Microsoft Purview eDiscovery add-on
Why wrong: eDiscovery add-ons are for advanced search and hold capabilities, not for archive storage capacity.
- D
Microsoft 365 E5 Security add-on
Why wrong: E5 Security adds threat protection features like Defender for Identity and Cloud App Security, unrelated to mailbox archiving.
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 500-user organization is licensed with Microsoft 365 E3. They need to comply with a regulation that requires retaining all Exchange Online mailbox content for 10 years and providing unlimited archive storage for users. Which add-on license or service should they acquire to meet this requirement most cost-effectively?
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
Exchange Online Archiving for Exchange Online Plan 2
Option B is correct because Exchange Online Archiving for Exchange Online Plan 2 provides unlimited archive storage and retention policies that can enforce a 10-year hold on mailbox content. This add-on is the most cost-effective way to meet the regulatory requirements without upgrading to E5, as it directly extends the archiving and retention capabilities of the existing E3 license.
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.
- ✗
Microsoft 365 E5 Compliance add-on
Why it's wrong here
E5 Compliance adds advanced compliance features like communication compliance and more, but the primary need (unlimited archive and 10-year retention) can be met with a simpler add-on.
- ✓
Exchange Online Archiving for Exchange Online Plan 2
Why this is correct
This add-on provides unlimited archive storage for users who already have Exchange Online Plan 2 (included in E3). Retention policies can enforce 10-year retention.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Microsoft Purview eDiscovery add-on
Why it's wrong here
eDiscovery add-ons are for advanced search and hold capabilities, not for archive storage capacity.
- ✗
Microsoft 365 E5 Security add-on
Why it's wrong here
E5 Security adds threat protection features like Defender for Identity and Cloud App Security, unrelated to mailbox archiving.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume only an E5 license or a compliance add-on can provide long-term retention and unlimited archiving, but the Exchange Online Archiving add-on is a targeted, lower-cost solution for these specific needs.
Detailed technical explanation
How to think about this question
Exchange Online Archiving for Exchange Online Plan 2 leverages the In-Place Archive feature, which automatically moves older mailbox items to a separate archive mailbox with unlimited storage capacity. Retention policies in Exchange Online use Managed Folder Assistant to apply hold settings, ensuring that deleted or modified items are preserved for the specified duration, such as 10 years, without requiring additional licensing for litigation hold or eDiscovery.
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
Got this wrong? Here's your next step.
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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: Exchange Online Archiving for Exchange Online Plan 2 — Option B is correct because Exchange Online Archiving for Exchange Online Plan 2 provides unlimited archive storage and retention policies that can enforce a 10-year hold on mailbox content. This add-on is the most cost-effective way to meet the regulatory requirements without upgrading to E5, as it directly extends the archiving and retention capabilities of the existing E3 license.
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.
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
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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