License & Subscription Issues

Licensing Alternatives to Microsoft 365 E5 for PAWs

Maira Mehtab Sep 22, 2026 869 views

Question details

Organizations are looking for Microsoft licensing options that support Privileged Access Workstations (PAWs) without requiring the purchase of a full Microsoft 365 E5 subscription.

Product: Microsoft 365
Device & OS: not provided
Scenario: Equipping Privileged Access Workstations with the necessary security and identity management features without incurring the high costs of an E5 license.
Observed behavior: Seeking alternative licensing combinations, such as Microsoft 365 E3 combined with standalone security products, to achieve necessary PAW compliance.

Before you start

Assess your organization's specific identity management, security, and compliance requirements for Privileged Access Workstations before exploring new licensing tiers.

Solution 1Recommended

Combine Microsoft 365 E3 with Specific Security Add-ons

Utilize lower-tier subscriptions combined with targeted security add-ons to achieve PAW capabilities at a more manageable cost.

Instead of purchasing the comprehensive Microsoft 365 E5 license, organizations can build a secure environment by layering specific security and governance add-ons on top of a Microsoft 365 E3 license. This ensures robust security for Privileged Access Workstations while optimizing licensing expenditures.

Review Microsoft 365 E3 Base License

Evaluate your current Microsoft 365 E3 license to ensure it covers the foundational workstation and basic security requirements for your administrators.

Add Microsoft Entra ID Governance

Integrate Microsoft Entra ID Governance as an add-on to manage advanced access lifecycles and privileged identity controls essential for PAWs.

Implement Purview Privileged Access Management

Include the Microsoft Purview Privileged Access Management module to granularly control, authorize, and monitor highly privileged administrative tasks.

Request an Official Assessment

Contact Microsoft billing or business support directly to perform an official licensing assessment and confirm that your chosen add-on combination meets strict compliance requirements.

Free Microsoft Office alternative

Looking for Cost-Effective Office Solutions? Try WPS Office

If enterprise Microsoft 365 licensing costs are too high, consider migrating your standard users to WPS Office. It provides a lightweight, highly compatible alternative to Microsoft Office for everyday productivity needs, helping you allocate premium E5 licenses only to specialized PAWs.

1. Download the Installer: Visit the official WPS Office website to download the free standard or enterprise installer.
2. Deploy to Standard Users: Install WPS Office on non-privileged employee workstations to reduce overall enterprise licensing dependencies.
3. Open Office Files: Seamlessly open, edit, and collaborate on .docx, .xlsx, and .pptx files natively without formatting loss.

Fully compatible with Microsoft Word, Excel, and PowerPoint file formats.Significantly reduces enterprise software licensing costs for standard users.Familiar user interface ensuring seamless employee migration with minimal training.Lightweight architecture for fast installation and reliable performance on any workstation.

microsoft office alternative - wps office

Frequently Asked Questions

What is a Privileged Access Workstation (PAW)?

A Privileged Access Workstation (PAW) is a dedicated computing environment designed to perform highly sensitive administrative tasks. It offers the highest level of security to protect critical enterprise assets from cyber threats.

Can I use Microsoft 365 E3 for a Privileged Access Workstation?

Yes, Microsoft 365 E3 can be used as a baseline license for a PAW. However, you will typically need to purchase additional security and governance add-ons, such as Microsoft Entra ID Governance, to meet strict administrative security standards.

Where can I get an official Microsoft licensing assessment?

You can contact Microsoft billing or business support directly through your Microsoft 365 Admin Center, or work with a certified Microsoft licensing partner to evaluate your organization's specific needs.

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