Microsoft offers a wide range of licensing options to meet the needs of individuals, businesses, and enterprises. Whether you’re setting up a small office or managing a global IT infrastructure, choosing the right license is crucial for compliance, cost-efficiency, and productivity.
Microsoft 365 (formerly Office 365) Use Cases:
- Cloud-based productivity tools (Word, Excel, PowerPoint, Outlook).
- Email hosting with Exchange.
- Collaboration via Teams and SharePoint.
- Device management and security (Premium and E5 tiers).
Here’s a breakdown of the most common Microsoft license types and how they’re typically used:
Microsoft 365 Business Plans
(For small to medium-sized businesses – up to 300 users)
1. Business Basic
Cost: ~$6/user/month (annual commitment)
Best for: Businesses that need cloud services but not desktop apps.
Includes:
- Web and mobile versions of Word, Excel, PowerPoint, Outlook
- Microsoft Teams (chat, calls, video conferencing)
- 1 TB OneDrive cloud storage per user
- Business-class email with Exchange
- SharePoint for collaboration
- Microsoft Forms, Planner, Bookings
- Security: Basic spam and malware protection
- Microsoft Copilot (available as add-on)
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2. Business Standard
Cost: ~$12.50/user/month
Best for: Businesses that need full desktop Office apps and collaboration tools. Includes everything in Business Basic, plus:
- Desktop versions of Word, Excel, PowerPoint, Outlook
- Microsoft Publisher and Access (PC only)
- Microsoft Loop for collaborative workspaces
- Microsoft Clipchamp for video editing
- Webinar hosting with registration and reporting
- Microsoft Copilot (available as add-on)
3. Business Premium
Cost: ~$22/user/month
Best for: Businesses needing advanced security and device management. Includes everything in Business Standard, plus:
- Microsoft Intune (device and app management)
- Microsoft Defender for Business (endpoint security)
- Azure Information Protection (data classification and protection)
- Microsoft Entra ID (formerly Azure AD Premium P1)
- Microsoft Purview (data governance tools)
- Enhanced identity and access management
- Microsoft Copilot (available as add-on)
- Microsoft 365 Enterprise Plans
(For large organizations – no user limit)
4. Microsoft 365 E3
Cost: ~$33.75/user/month
Best for: Enterprises needing advanced productivity and compliance tools.
Includes:
- All features of Business Premium
- Unlimited OneDrive storage
- Office desktop apps for all devices
- Microsoft Teams with advanced capabilities
- Microsoft Entra ID P1
- Microsoft Purview Information Protection
- Microsoft 365 Apps for enterprise
- Windows Enterprise OS licensing
- Basic analytics and reporting tools
5. Microsoft 365 E5
Cost: ~$54.75/user/month
Best for: Enterprises requiring top-tier security, compliance, and analytics. Includes everything in E3, plus:
- Microsoft Defender for Endpoint, Identity, and Office 365
- Microsoft Entra ID P2 (advanced identity protection)
- Microsoft Purview with advanced compliance and risk management
- Microsoft Sentinel integration
- Power BI Pro (business analytics)
- Microsoft Teams Phone with audio conferencing
- Advanced threat protection and investigation tools
Check this out for more: https://m365maps.com/
Choosing the Right Plan
| Plan | Best For | Key Differentiator |
| Business Basic | Startups, remote teams | Cloud-only apps |
| Business Standard | Growing teams | Desktop + cloud apps |
| Business Premium | SMBs with security needs | Device & data protection |
| E3 | Mid-to-large enterprises | Unlimited storage, compliance |
| E5 | Security-first enterprises | Advanced security & analytics |
Microsoft’s New Commerce Experience (NCE) introduces a streamlined and standardized approach to licensing across Microsoft 365, Dynamics 365, and other cloud services. This approach requires a 12-month commitment, but can be paid monthly or you can select a month-to-month commitment for an additional charge. Additionally, you can now select a coterminous date for all of your various license types to renew together.
Microsoft’s licensing ecosystem can seem complex, but understanding the core categories helps you make informed decisions. Whether you’re a solo entrepreneur or an IT manager at a large firm, aligning your license type with your operational needs ensures you get the most value from Microsoft’s powerful tools.
Logic Speak is honored to be a direct Microsoft Cloud Solution Provider (CSP).