MS-900 Practice Question: Describe Microsoft 365 pricing, licensing, and support
An organization with 5,000 users has Microsoft 365 E3 licenses. They want to add Microsoft Defender for Office 365 (Plan 1) and Microsoft Purview Data Loss Prevention (DLP). Which THREE actions can achieve this?
⚠ Common exam trap
Many candidates assume Microsoft 365 E1 or Business Premium can be scaled to 5,000 users, but E1 lacks the required features and Business Premium has a strict 300-user limit, making both invalid for this scenario.
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 Purview DLP as an add-on
Microsoft 365 E3 licenses include Exchange Online Protection but not Defender for Office 365 (Plan 1) or Purview DLP. Both features can be added as standalone add-on subscriptions (Options A and D). Alternatively, upgrading all users to Microsoft 365 E5 bundles both features natively, making Option B correct. This approach avoids per-user add-on costs and simplifies license management.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Purchase Microsoft Purview DLP as an add-on
Why this is correct
Purchasing Microsoft Purview DLP as an add-on is the correct, cost-effective way to add the required data loss prevention capability to your existing Microsoft 365 E3 deployment. E3 natively includes many compliance features, but advanced DLP policies, endpoint DLP, and related capabilities require this add-on license. By licensing only the DLP add-on for your 5,000 users, you avoid the per-user cost of upgrading to E5 while still meeting the compliance requirement. This approach is valid because Microsoft specifically makes Purview DLP available as an add-on to E3.
- ✓
Upgrade all users to Microsoft 365 E5
Why this is correct
Upgrading all 5,000 users to Microsoft 365 E5 directly satisfies the requirement to add Microsoft Defender for Office 365 (Plan 1) and Microsoft Purview Data Loss Prevention (DLP). Microsoft 365 E5 licenses inherently include Microsoft Defender for Office 365 (Plan 2), which encompasses all Plan 1 features, and comprehensive Microsoft Purview Data Loss Prevention capabilities. This provides both desired security and compliance services as part of the unified E5 suite, eliminating the need for separate add-on purchases.
- ✗
Downgrade to Microsoft 365 E1 and add the features
Why it's wrong here
Downgrading to Microsoft 365 E1 would actually remove the required DLP capability because E1 does not support the Microsoft Purview DLP add-on. E1 is a much lower licensing tier intended for basic email and collaboration, and it lacks the security and compliance features that are already present in E3, such as core eDiscovery, sensitivity labels, and DLP prerequisites. Even if you attempted to 'add the features' later, Microsoft does not offer a DLP add-on for E1, so this decision would not satisfy the requirement and would cause a loss of functionality.
- ✓
Purchase Microsoft Defender for Office 365 (Plan 1) as an add-on
Why this is correct
Purchasing Microsoft Defender for Office 365 (Plan 1) as an add-on is a correct, targeted solution for the security requirement because E3 includes only Exchange Online Protection, which is insufficient for advanced threat protection. Defender for Office 365 Plan 1 adds essential features like anti-phishing protection, safe attachments, and safe links, and it is fully supported as an add-on to E3 licenses. This option lets you enable robust email security without the cost of upgrading all users to E5, and it complements a separate DLP add-on purchase for compliance.
- ✗
Switch to Microsoft 365 Business Premium
Why it's wrong here
Switching to Microsoft 365 Business Premium is not feasible for a 5,000-user organization because that plan is capped at 300 users. Business Premium is designed for small and medium-sized businesses, and it cannot scale to an enterprise-sized user base. Even though Business Premium includes some Defender and DLP-like capabilities, the strict 300-user licensing limit makes it impossible to license all 5,000 users, so this option fails as a practical solution.
Go deeper
Related to this question
Learn chapter
Data Loss Prevention (DLP) in Microsoft 365
Key term
Microsoft Defender
Microsoft Defender is a suite of security products that protects devices, data, and identities from cyber threats like malware, phishing, and unauthorized access.
Key term
Microsoft Defender for Office 365
Microsoft Defender for Office 365 is a cloud-based email and collaboration security service that protects organizations against malicious threats like phishing, malware, and spam in email messages and Office 365 apps.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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