In my many interactions with clients over the last few years, the recurring theme has been, “We want to go to the Cloud”. It even inspired the name of the organization! However, this is usually followed by a lot of confusion surrounding the process and then the licensing model for Azure and Microsoft services. In this Microsoft 365 Licensing article, I will go into detail about the most common licensing packages I have seen used by organizations. We will also discuss the features of the tiers within the models.
Let’s jump in!
Business Licensing
The first tier we are going to discuss is Business and there are 4 types of these:
- Microsoft 365 Business Basic: This offers web and mobile office apps and a mailbox.
- Microsoft 365 Apps for Business: This offers just desktop versions of office apps, no mailbox.
- Microsoft 365 Business Standard: This license offers mailbox and desktop versions of the office apps for one installation.
- Microsoft 365 Business Premium: The same as Business Standard, but also includes Intune, which allows management of workstations.
These solutions are what I usually recommend to clients just getting started in Microsoft Services and wanting to test it out. They are also useful for small businesses, as well as if you need a mailbox for an application that will also send email needing authentication.
More information can be found on Microsoft’s Comparison Site
Office 365 Licensing
The second tier of Licensing we are going to discuss is Office 365 and there are 4 types of these:
- Microsoft 365 Apps for Enterprise: This one includes desktop office apps and some file storage and sharing, but no mailbox.
- Office 365 E1: This plan includes a mailbox, file storage, sharing, teams, and meetings, but Microsoft 365 Apps are not included.
- Office 365 E3: This plan offers all the features of the previous two with 5 Microsoft 365 app installations per license and Microsoft information protection and sensitivity labels, email archiving, group policy support, roaming settings, legal hold, and eDiscovery.
- Office 365 E5: This plan offers all the features of the previous one, but also includes PowerBi Pro, Microsoft Defender for Microsoft 365, and Microsoft 365 Cloud App Security.
This tier mainly focuses on Office and the Office portal tools.
More information can be found on Microsoft’s Comparison Page
Enterprise Licensing
The third tier of Licensing we are going to discuss is Enterprise and there are 3 types of these:
- Microsoft 365 F3: This type is mainly meant for Frontline Workers and includes office apps and some services at a discounted rate.
- Microsoft 365 E3: This plan includes 5 installations of all Microsoft 365 apps, Intune, Autopilot, Windows Autopatch, Microsoft Defender for Endpoint P1, SharePoint Online, Yammer, Viva, OneDrive, Azure Active Directory P1, Azure Information Protection P1, BitLocker, Microsoft Security, and Compliance Center, Basic retention policies, Microsoft Teams retention policies, and Windows Enterprise E3 licensing.
- Microsoft 365 E5: This plan offers all the features of E3, but also includes: PowerBi Pro, Azure Active Directory Premium P2, Microsoft 365 Defender, Microsoft Defender for Microsoft 365, Microsoft Defender for Endpoint P2, Microsoft Defender for Identity, Microsoft Defender for Cloud Apps, Azure Information Protection P2, and full access to Microsoft Purview Compliance. (Check out our article detailing this one, it’s huge for compliance!)
One of these options is usually where I steer my clients so that they can take advantage of Azure Active Directory’s powerful identity and access management features.
Add-On Services
Of course, it’s not all or nothing like a cable package. Microsoft also offers add-on licensing for additional features. Basically, almost all features are available ala carte, your Microsoft Partner can help with any questions you have on these and all the plans. Don’t forget, there are a ton of deals that Microsoft offers exclusively to resellers and Microsoft Partners.
Conclusion
Microsoft offers a ton of services that can be of huge value to any organization, but navigating the ins and outs of their licensing models can be exhaustive. One of the best strategies to take is to work in conjunction with a Microsoft Partner to check out what licensing needs are best for your organization. I hope you found this article helpful!
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