If you’re a Microsoft partner with Microsoft 365 E3 customers, I’m going to be really direct: you’re sitting on one of the biggest upsell opportunities in the Microsoft ecosystem, and it’s hiding in plain sight. And it’s not just because of what you think I’m going to say!!
We all know the E3 price point feels “comfortable” for most organisations. It’s familiar, predictable, and easy for customers to justify. But here’s the thing nobody tells them:
They’re paying more than they think (and probably you as their Microsoft Partner realise) in telephony, in security tools, in compliance add‑ons, and in operational drag. And the moment you show them that, the E5 conversation suddenly becomes a lot easier.
Especially when you pair E5 with SIPPIO.
The Real Cost Problem: Telephony Outside Microsoft 365
Most E3 customers are still running voice outside the Microsoft cloud; old PBXs, multiple carriers, conferencing bolt‑ons, recording tools… the list goes on.
And it hurts them in three big ways:
They’re spending far more than they realise.
Your typical 1,000‑seat organisation is spending ~$38,600/month on legacy voice, licences, trunks, SBCs, PBX maintenance, call recording, the whole lot. When they move to E5 + SIPPIO, the cost drops to ~$29,000/month. That’s a saving of ~$115k/year; or about $9.60 per user per month. Not bad for a “price increase” they were scared of, right?
Keeping that $9.60 per user per month saving in mind, you can now do the maths for any number of seats users that you’re looking after that are using E3. Great savings for the customer, great growth and stickiness value opportunity for the Microsoft Partner.
They’re less secure, and they know it.
Keeping telephony outside Microsoft 365 leaves a blind spot in identity, threat protection, compliance, and audit controls. With SIPPIO, partners can help customers bring voice into the Microsoft security boundary. Aligning it with Defender, Purview, and all the good stuff they’ve already paid for in E5.
They’re missing the AI wave completely.
This is the big one. “Voice is the fuel for Copilot and agent workflows.”
No PSTN = No AI context. AI without voice data is basically half‑baked, and customers upgrading to E5 without activating voice are leaving massive value on the table.
The Partner Opportunity: It’s Honestly Massive
The E3 estate globally is huge. Estimated at approximately 35% – 45% of all Microsoft 365 commercial users worldwide, therefore approximately 128M – 180M seats.
Just nudging even a tiny percentage of those customers into E5 unlocks:
- Higher Microsoft revenue
- Higher partner margin
- Stickier Teams usage
- More Copilot readiness
- Reduced competitive risk
And the beautiful part of all this….
SIPPIO removes every historic excuse customers had.
No SBCs. No telco contracts. No migration headaches. No regulatory faff. Just turn it on.
“Your next phone system is already in Microsoft 365, our job is to turn it on”
The E5 + SIPPIO Upsell Pitch Partners Should Be Using Right Now
Here’s the exact framing: (numbers will vary depending on seat count, I’ll stick with my 1,000 seat example for this, saves putting “$XXXX” in the amounts)
1. “Let me show you what you already pay for today.”
Break down their PBX + carrier + SBC + conferencing + recording stack. They will be shocked. (And yes, this is where you drop the ~$38.6k/month profile.)
2. “Now here’s what that looks like on E5 + SIPPIO.”
$29k/month. Fully secure. Fully governed. Fully AI‑ready.
3. “And you save money doing it.”
That’s the mic‑drop moment.
4. “Plus, you unlock all the E5 value you’ve ignored for years.”
Defender XDR, Purview, Power BI Pro, Copilot readiness, Audio Conferencing, Teams Phone, Compliance, Automation.
All in one licence. All under one roof. All without building anything.
Why Customers Say Yes (And Why Partners Win Big)
When customers move from E3 to E5, SIPPIO makes the jump pay for itself.
That’s the story. It’s not “buy more”, or “it’s more secure”, or even “it’s better for AI” (yes E5 does all those things I know), but what wins is simple, “This upgrade pays for itself, unlocks value you’re already missing, and sets you up for the AI future.”
Partners win recurring revenue.
Customers reduce cost and complexity.
Microsoft gets deeper platform adoption.
Everyone wins.
Final Thought: If You’re Not Talking to E3 Customers Right Now… You Should Be
E3 is the greatest hidden opportunity in the channel today. Once customers see the numbers, and the security gap, and the AI dependency, they get it.
And with SIPPIO, the technical blockers are gone. So honestly, this isn’t a hard conversation.
It’s just one most partners haven’t started yet.
Now’s the time.
