- A
Upgrade all 100 users from Business Premium to Microsoft 365 E5
Why wrong: This would cost more than necessary because Business Premium already includes many features. E5 includes everything, but it's not cost-effective when only advanced compliance is needed.
- B
Purchase Microsoft 365 E5 Compliance add-on for all 100 users
The E5 Compliance add-on provides eDiscovery (Premium) and Communication Compliance, and it can be subscribed to on top of Business Premium, making it the most cost-effective option.
- C
Purchase Microsoft 365 E5 eDiscovery and Audit add-on
Why wrong: There is no separate add-on named 'eDiscovery and Audit'; eDiscovery (Premium) is included in the E5 Compliance add-on. This option does not exist and would not cover Communication Compliance.
- D
Purchase Microsoft 365 E5 Compliance and Information Protection add-on
Why wrong: This is not a valid product name. The correct add-on is 'Microsoft 365 E5 Compliance'. Additionally, Information Protection features are included in the E5 Compliance add-on but the name is inaccurate.
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 with 100 Microsoft 365 Business Premium users needs to add advanced compliance features: eDiscovery (Premium) and Communication Compliance. They want to keep their existing Business Premium subscriptions to retain current capabilities. What is the most cost-effective licensing approach?
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 Microsoft 365 E5 Compliance add-on for all 100 users
Option B is correct because Microsoft 365 Business Premium already includes the base compliance features, and the Microsoft 365 E5 Compliance add-on provides the advanced capabilities (eDiscovery Premium and Communication Compliance) without requiring a full license upgrade. This add-on is the most cost-effective approach as it adds only the needed compliance features to existing Business Premium subscriptions.
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 100 users from Business Premium to Microsoft 365 E5
Why it's wrong here
This would cost more than necessary because Business Premium already includes many features. E5 includes everything, but it's not cost-effective when only advanced compliance is needed.
- ✓
Purchase Microsoft 365 E5 Compliance add-on for all 100 users
Why this is correct
The E5 Compliance add-on provides eDiscovery (Premium) and Communication Compliance, and it can be subscribed to on top of Business Premium, making it the most cost-effective option.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Purchase Microsoft 365 E5 eDiscovery and Audit add-on
Why it's wrong here
There is no separate add-on named 'eDiscovery and Audit'; eDiscovery (Premium) is included in the E5 Compliance add-on. This option does not exist and would not cover Communication Compliance.
- ✗
Purchase Microsoft 365 E5 Compliance and Information Protection add-on
Why it's wrong here
This is not a valid product name. The correct add-on is 'Microsoft 365 E5 Compliance'. Additionally, Information Protection features are included in the E5 Compliance add-on but the name is inaccurate.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often assume they must upgrade to a full E5 license to get advanced compliance features, overlooking the existence of targeted add-ons like Microsoft 365 E5 Compliance that can be layered onto existing Business Premium subscriptions.
Detailed technical explanation
How to think about this question
The Microsoft 365 E5 Compliance add-on (SKU: SPE_E5_COMPLIANCE) is an add-on license that can be assigned to users with Microsoft 365 Business Premium (or E3) to enable advanced compliance features like eDiscovery (Premium), Communication Compliance, and Customer Key. Under the hood, eDiscovery (Premium) uses advanced analytics and machine learning to identify patterns in data, while Communication Compliance monitors internal and external communications for policy violations. In a real-world scenario, a company might need these features for regulatory compliance (e.g., FINRA or SEC) without paying for full E5 licenses, making the add-on a targeted and cost-effective solution.
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: Purchase Microsoft 365 E5 Compliance add-on for all 100 users — Option B is correct because Microsoft 365 Business Premium already includes the base compliance features, and the Microsoft 365 E5 Compliance add-on provides the advanced capabilities (eDiscovery Premium and Communication Compliance) without requiring a full license upgrade. This add-on is the most cost-effective approach as it adds only the needed compliance features to existing Business Premium subscriptions.
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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