MS-900 Describe Microsoft 365 apps and services Practice Question
A company uses Microsoft 365 E3. They want to upgrade to include advanced compliance features like communication compliance and insider risk management. Which add-on license do they need?
⚠ Common exam trap
Many exam-takers confuse Microsoft 365 E5 Security with Microsoft 365 E5 Compliance, assuming that advanced security features automatically include compliance capabilities, but Microsoft separates these into distinct SKUs with different feature sets.
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
✓
Microsoft 365 E5 Compliance
Microsoft 365 E5 Compliance is the correct add-on license because it includes advanced compliance features such as Communication Compliance (for monitoring and detecting inappropriate messages) and Insider Risk Management (for identifying and mitigating internal data risks). These features are not available in the base Microsoft 365 E3 subscription and require the E5 Compliance SKU to unlock.
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
Why this is correct
Microsoft 365 E5 Compliance is a paid add-on for E3 that delivers advanced compliance workloads, including communication compliance for monitoring employee communications and insider risk management for detecting suspicious activities. These features are not available in E3 by default, making this the correct upgrade to satisfy the stated compliance requirement.
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Microsoft 365 E5 Security
Why it's wrong here
Microsoft 365 E5 Security is an add-on that extends security capabilities, such as Microsoft Defender for Identity and additional identity threat detection, but it does not include the compliance-specific features like communication compliance or insider risk management. Since the company's requirement is centered on compliance, choosing this add-on would not address the intended need.
- ✗
Microsoft Purview Compliance Manager
Why it's wrong here
Microsoft Purview Compliance Manager is not a licensable add-on but rather a compliance management tool that sits within the E5 Compliance suite. It helps organizations assess their compliance posture against regulations but does not by itself provide the advanced compliance features or licensing needed for communication compliance and insider risk management. Therefore, it is an incorrect answer when the question asks for an add-on license.
- ✗
Microsoft Defender for Cloud Apps
Why it's wrong here
Microsoft Defender for Cloud Apps is a Cloud Access Security Broker (CASB) that focuses on security aspects like discovering cloud app usage and enforcing security policies. It is not a compliance add-on and does not include the specific compliance capabilities such as communication compliance or insider risk management, so it would not meet the company's compliance upgrade requirement.
Go deeper
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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.
Key term
Subscription
A subscription is a payment model where you pay a recurring fee to access a product or service instead of buying it once and owning it forever.
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JA
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.