Microsoft 365 Business Licensing Explained

Microsoft 365 is a comprehensive suite of cloud-based productivity and security services designed to empower businesses of all sizes. It offers a variety of plans, each with its own set of features and pricing. This article provides a detailed explanation of Microsoft 365 Business licensing, including the applications and services included in each plan.

Microsoft 365 Business Plans

Microsoft 365 offers several Business plans tailored for small to medium-sized businesses with up to 300 users 1. These plans combine productivity applications, cloud services, and security features to empower businesses to work efficiently and securely. Customers may purchase up to 300 Microsoft 365 Business licenses for their organization. Customers can mix and match cloud subscriptions; as a result, some customers may add Microsoft 365 Enterprise licenses to the same account 2. When considering an environment consisting of multiple subscription types, customers should work with their trusted IT advisors for guidance, as Microsoft 365 Business and Microsoft 365 Enterprise use different capabilities to secure and manage applications and data 2.

All the add-ons that can be added to Office 365 Business Premium can be added to Microsoft 365 Business. This means that you can purchase Office 365 Cloud App Security, Advanced Compliance, Threat Intelligence, MyAnalytics, Power BI Pro, and Audio Conferencing 2. The main Microsoft 365 Business plans are:

Applications and Services Included in Microsoft 365 Business Plans

Each Microsoft 365 Business plan includes a different set of applications and services 3. Here's a breakdown of the key features included in each plan:

Microsoft 365 Business Basic

This plan offers the essential tools for businesses to get started with Microsoft 365. It includes:

• Web and mobile versions of Office apps: Access to online versions of Word, Excel, PowerPoint, and Outlook.

• 1 TB of OneDrive cloud storage: Store and share files securely in the cloud.

• Microsoft Teams: Connect and collaborate with colleagues through chat, meetings, and calls.

• Exchange email: Business-class email with a 50 GB mailbox per user.

• Custom domain names and full calendar capabilities. 4

• Other tools: Use Teams to schedule activities, track information with Lists, interact with customers through Bookings, and get feedback with Forms4.

Microsoft 365 Business Standard

This plan builds upon the features of Business Basic and adds more advanced tools, including:

• Desktop versions of Office apps: Download and install the latest versions of Office apps on your computer. This includes Word, Excel, PowerPoint, Outlook, and OneNote. PC users also get Access and Publisher5.

• Webinars: Host online events with attendee registration and reporting tools5.

• SharePoint: Create intranet sites to share information and collaborate with your team6.

• Power Apps: Build custom business apps without coding6.

• Power Automate: Automate workflows to improve productivity6.

• Simplified sign-up: Businesses can use Microsoft 365 Business Standard with an email account from various providers through a Simplified Sign-Up process, though this offers fewer advanced customization features4.

Microsoft 365 Business Premium

This plan offers the most comprehensive set of features for businesses, including:

• Everything in Business Standard.

• Advanced security features: Protect your business with Microsoft Defender for Office 365, which includes anti-malware, anti-phishing, and anti-spam protection4.

• Intune: Manage and secure your devices and apps4.

• Azure Information Protection: Classify and protect sensitive data4.

• Conditional access: Control access to your data based on user location, device, and other factors4.

• Microsoft Defender for Business: This endpoint security solution is designed for small and medium-sized businesses (up to 300 employees) and offers ransomware protection with automatic threat disruption, advanced antivirus capabilities, and tools for managing vulnerabilities7.

Microsoft 365 Apps for business

This plan provides access to the core Office apps, including:

• Desktop, web, and mobile versions of Office apps: Word, Excel, PowerPoint, Outlook, OneNote (plus Access and Publisher for PC users)5.

• 1 TB of OneDrive cloud storage: Store and share files securely in the cloud.

Choosing the Right Microsoft 365 Business Plan

To choose the right Microsoft 365 Business plan for your organization, consider the following factors:

• Your budget: Each plan has a different price point, so choose one that fits your budget.

• Your needs: Consider the features that are most important to your business, such as desktop apps, advanced security, or device management.

• Your size: The number of users in your organization will also affect your choice of plan.

• Scalability: Consider future growth and whether your chosen plan will accommodate more users or evolving needs8.

• Non-profit pricing: Microsoft offers special "non-profit staff" pricing for non-profit organizations9.

• Business Voice: You can purchase a Business Voice subscription. Business Voice is a telephony solution designed for small and medium businesses of up to 300 users that bundles Phone System, Audio Conferencing, a Domestic Calling Plan, and more7.

Microsoft 365 Business vs. Enterprise

While Microsoft 365 Business plans are suitable for many small to medium-sized businesses, larger organizations or those with more complex needs may benefit from Microsoft 365 Enterprise plans 10. Enterprise plans offer increased levels of compliance and security management, as well as additional functionality, including business intelligence and analytics tools 2.

Types of Microsoft 365 Business Licenses

Microsoft offers a variety of licensing models to fit different needs for different customers depending on their previous licensing purchases with Microsoft. There are four types of User Subscription Licenses (USLs) a customer can buy:

• Full USL: These licenses are designed for new customers who haven't purchased any productivity solution from Microsoft previously11.

• From SA USL: These licenses are designed for current Microsoft customers that want to transition to the cloud and are using on-premise solutions such as Exchange Server with an ECAL Suite and/or Office Professional Plus11.

• Add-on USL: These licenses are also designed for current on-premise Microsoft customers that want to try the Office 365 cloud solution without giving up their on-premise solution or fully transitioning to the cloud. These USLs provide the full benefits of the Office 365 suites at a fraction of the cost11.

• Step-up USL: These licenses are designed for current Office 365 customers that want to upgrade their current service during the term of the enrollment or agreement11.

How to Purchase Microsoft 365 Business Licenses

You can purchase Microsoft 365 Business licenses through Microsoft's website or through a Microsoft partner 12. When you purchase a subscription, you specify the number of licenses you need and create accounts for your users. You can then assign licenses to each user and manage their access to applications and services through the Microsoft 365 admin center.

Frequently Asked Questions

Here are some common questions about Microsoft 365 Business licensing:

• What are the payment options? Microsoft 365 Business Basic, Business Standard, Business Premium, and Microsoft 365 Apps for business are available for monthly commitment or annual commitment. Monthly commitment allows you to pay month by month and cancel at any time. Annual commitment allows you to sign up for a one-year subscription and benefit from a discount. You can choose to pay monthly or for the entire year at the time you sign up13.

• What are the key differences between Microsoft 365 Business Basic, Standard, and Premium? Business Basic offers essential cloud-based services, including web and mobile versions of Office apps, but no desktop applications. Business Standard adds desktop versions of Office apps and other tools like webinars and SharePoint. Business Premium includes everything in Business Standard plus advanced security features, Intune, and Azure Information Protection13.

• What if my business has more than 300 users? While Microsoft 365 Business plans are designed for businesses with up to 300 users, you can mix and match cloud subscriptions and add Microsoft 365 Enterprise licenses to the same account if needed13.

Conclusion

Microsoft 365 Business licensing offers a variety of plans to meet the needs of businesses of all sizes. By understanding the different plans and the applications and services included in each, you can choose the right solution for your organization. Microsoft 365 Business Premium offers particular benefits for hybrid workforces with its comprehensive security features and device management capabilities. When choosing a plan, it's important to consider your budget, your current needs, and your future growth. To explore the different plans and find the best fit for your business, visit the Microsoft 365 website or contact a Microsoft partner.

Works cited

1. Microsoft 365 for Business | Small Business, accessed on February 5, 2025, https://www.microsoft.com/en-us/microsoft-365/business

2. Microsoft 365 for business | Microsoft Licensing Resources, accessed on February 5, 2025, https://www.microsoft.com/en-us/licensing/product-licensing/microsoft-365-business

3. Understand subscriptions and licenses in Microsoft 365 for business, accessed on February 5, 2025, https://learn.microsoft.com/en-us/microsoft-365/commerce/licenses/subscriptions-and-licenses?view=o365-worldwide

4. Microsoft 365 Business Plans: Basic vs Standard vs Premium - Datalink Networks, accessed on February 5, 2025, https://www.datalinknetworks.net/dln_blog/microsoft-365-business-plans-basic-vs-standard-vs-premium

5. Microsoft 365 Business Basic vs Standard vs Premium: what are the differences?, accessed on February 5, 2025, https://www.techradar.com/features/microsoft-365-business-basic-vs-standard-vs-premium-what-are-the-differences

6. Microsoft 365 Business Standard: A Guide for Businesses - Redress Compliance, accessed on February 5, 2025, https://redresscompliance.com/microsoft-365-business-standard-a-guide-for-businesses/

7. Microsoft 365 Business Premium frequently asked questions, accessed on February 5, 2025, https://learn.microsoft.com/en-us/microsoft-365/business-premium/microsoft-365-business-faqs?view=o365-worldwide

8. Microsoft 365 Plan Comparison: Which One is Best for You? - Austin Technology, accessed on February 5, 2025, https://austintechnology.com.au/blog/microsoft-365-plan-comparison-which-one-is-best-for-you/

9. Find the best Microsoft license for your organization - Mozzaik365, accessed on February 5, 2025, https://www.mozzaik365.com/blog-posts/which-microsoft-licenses-choose

10. Microsoft 365 Business Premium, accessed on February 5, 2025, https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-business-premium

11. Office 365 Licensing brief - Microsoft, accessed on February 5, 2025, https://download.microsoft.com/download/3/d/4/3d42bdc2-6725-4b29-b75a-a5b04179958b/licensing_enterprise_cloud_suite.pdf

12. Buy Microsoft 365 for your small business, accessed on February 5, 2025, https://support.microsoft.com/en-us/office/buy-microsoft-365-for-your-small-business-134ab628-5346-4004-aad0-6a54206a177c

13. What is Microsoft 365 for Business? - FAQs, accessed on February 5, 2025, https://www.microsoft.com/en-us/microsoft-365/business/microsoft-365-frequently-asked-questions