- A
Upgrade all users to Microsoft 365 E5.
Why wrong: E5 includes all E3 features plus advanced security and analytics, but it is more expensive than adding just the required security features via an add-on.
- B
Add Microsoft Entra ID Premium P2 and Microsoft Defender for Identity as standalone add-ons.
Why wrong: While technically possible, purchasing standalone add-ons is typically more expensive than using the bundled Microsoft 365 E5 Security add-on, which includes both products and more.
- C
Add the Microsoft 365 E5 Security add-on for each user.
The E5 Security add-on is specifically designed to add Microsoft Entra ID P2, Defender for Identity, and other security capabilities to E3 licenses at a lower cost than upgrading to E5.
- D
Add Enterprise Mobility + Security E5 add-on.
Why wrong: EM+S E5 includes Microsoft Entra ID P2 and Intune, but it does not include Microsoft Defender for Identity. The E5 Security add-on is the correct bundle.
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 300 Microsoft 365 E3 users needs to add advanced identity protection features: Microsoft Entra ID Premium P2 and Microsoft Defender for Identity. They want to add these capabilities without upgrading all users to E5. What is the most cost-effective licensing strategy?
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
Add the Microsoft 365 E5 Security add-on for each user.
Option C is correct because the Microsoft 365 E5 Security add-on bundles Microsoft Entra ID Premium P2 and Microsoft Defender for Identity (along with other security features) at a lower per-user cost than purchasing them separately, and it can be added to an existing E3 subscription without upgrading the entire license. This provides the required identity protection capabilities cost-effectively for all 300 users.
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
E5 includes all E3 features plus advanced security and analytics, but it is more expensive than adding just the required security features via an add-on.
- ✗
Add Microsoft Entra ID Premium P2 and Microsoft Defender for Identity as standalone add-ons.
Why it's wrong here
While technically possible, purchasing standalone add-ons is typically more expensive than using the bundled Microsoft 365 E5 Security add-on, which includes both products and more.
- ✓
Add the Microsoft 365 E5 Security add-on for each user.
Why this is correct
The E5 Security add-on is specifically designed to add Microsoft Entra ID P2, Defender for Identity, and other security capabilities to E3 licenses at a lower cost than upgrading to E5.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Add Enterprise Mobility + Security E5 add-on.
Why it's wrong here
EM+S E5 includes Microsoft Entra ID P2 and Intune, but it does not include Microsoft Defender for Identity. The E5 Security add-on is the correct bundle.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse the Enterprise Mobility + Security E5 add-on with the E5 Security add-on, not realizing that EMS E5 lacks Microsoft Defender for Identity and is therefore insufficient for the stated requirements.
Detailed technical explanation
How to think about this question
The Microsoft 365 E5 Security add-on is a SKU that bundles Microsoft Entra ID Premium P2, Microsoft Defender for Identity, Microsoft Defender for Office 365, Microsoft Purview Information Protection, and Microsoft 365 Defender, all under a single per-user license. This bundling leverages the Microsoft 365 licensing hierarchy where add-ons can be applied to lower-tier subscriptions (like E3) to incrementally add specific capabilities without requiring a full suite upgrade. In practice, this allows organizations to deploy advanced identity protection (e.g., risk-based Conditional Access policies via Entra ID P2) and identity threat detection (via Defender for Identity) while maintaining their existing E3 compliance and productivity features.
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: Add the Microsoft 365 E5 Security add-on for each user. — Option C is correct because the Microsoft 365 E5 Security add-on bundles Microsoft Entra ID Premium P2 and Microsoft Defender for Identity (along with other security features) at a lower per-user cost than purchasing them separately, and it can be added to an existing E3 subscription without upgrading the entire license. This provides the required identity protection capabilities cost-effectively for all 300 users.
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.
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Last reviewed: Jun 11, 2026
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