Choosing the right Microsoft 365 licence is essential for businesses of all sizes. With a range of plans tailored for different needs, understanding what each licence offers is crucial to ensure your team has the tools it needs to stay productive, collaborative, and secure.
While Microsoft 365 offers Personal and Family licences, these are designed for individual or household use and should not be used by businesses. They lack critical features like advanced security, compliance tools, and business-class email, making them unsuitable for professional use.
This guide focuses exclusively on Microsoft 365 Business and Enterprise licences, breaking down their features and helping you choose the best plan for your organisation.
Why Choose Microsoft 365 for Your Business?
Microsoft 365 isn’t just about Word and Excel anymore. It’s a complete productivity suite combining powerful applications with cloud-based tools like Teams, SharePoint, and OneDrive. Business-focused plans also include enhanced security, compliance capabilities, and integration with advanced IT management tools.
Choosing the right licence ensures your organisation:
- Gets the features it needs without overpaying.
- Has the security to protect sensitive data.
- Supports collaboration, whether your team works remotely or on-site.
The Two Main Business Licence Categories
Microsoft 365 for business users falls into two primary categories:
- Microsoft 365 for Business – Best for small to medium businesses (up to 300 users).
- Microsoft 365 for Enterprise – Designed for larger organisations or those with advanced IT and compliance needs.
Let’s break these categories down to explore which licence might be the right fit for your organisation.
Microsoft 365 for Business
Microsoft 365 for Business plans are ideal for organisations with up to 300 users. These licences are scalable, making them a great choice for growing businesses. The four main options include:
- Business Basic
- Business Standard
- Business Premium
- Apps for Business
1. Microsoft 365 Business Basic
- What it includes:
- Cloud-based tools like Microsoft Teams, OneDrive (1TB per user), and Exchange.
- Web and mobile versions of Word, Excel, and PowerPoint.
- Who it’s for:
Small businesses looking for affordable collaboration tools without the need for desktop apps.
2. Microsoft 365 Business Standard
- What it includes:
- Everything in Business Basic, plus desktop versions of Office apps.
- Additional collaboration features in Teams and premium templates.
- Who it’s for:
Teams that need access to full desktop apps and more advanced productivity tools.
3. Microsoft 365 Business Premium
- What it includes:
- All features of Business Standard.
- Advanced security tools, including Microsoft Defender for Office 365.
- Device management through Intune.
- Who it’s for:
Businesses handling sensitive data or requiring comprehensive security and IT management.
4. Microsoft 365 Apps for Business
- What it includes:
- Desktop and mobile versions of Word, Excel, PowerPoint, and Outlook.
- 1TB of OneDrive storage per user.
- Does not include Teams, Exchange email, or SharePoint.
- Who it’s for:
Businesses that already have communication tools in place but need Microsoft’s productivity suite.
Microsoft 365 for Enterprise
For organisations that exceed the 300-user limit or have complex IT and compliance needs, Microsoft 365 for Enterprise offers enhanced features, scalability, and security. The main plans include:
- E1
- E3
- E5
- F3
1. Microsoft 365 E1
- What it includes:
- Web and mobile versions of Office apps (no desktop apps).
- Robust collaboration tools like SharePoint, Teams, and OneDrive.
- Who it’s for:
Organisations prioritising cloud collaboration without needing desktop apps.
2. Microsoft 365 E3
- What it includes:
- Everything in E1, plus desktop Office apps.
- Advanced compliance tools like Data Loss Prevention (DLP).
- Enhanced security features.
- Who it’s for:
Enterprises requiring comprehensive tools for collaboration, security, and compliance.
3. Microsoft 365 E5
- What it includes:
- Everything in E3, plus advanced security and analytics tools.
- Includes Microsoft Defender for Endpoint, Azure Active Directory Premium, and advanced threat protection.
- Who it’s for:
Large organisations with high-security requirements or those needing in-depth analytics and insights.
4. Microsoft 365 F3
- What it includes:
- Mobile-first tools designed for frontline workers.
- Limited access to Office apps and cloud storage.
- Who it’s for:
Businesses in industries like retail, healthcare, or hospitality, where workers don’t require full desktop capabilities.
Key Differences Between Business and Enterprise Plans
| Feature | Business Plans | Enterprise Plans |
|---|---|---|
| User Limit | Up to 300 users | Unlimited |
| Security Features | Standard, with Premium offering more | Advanced across all plans |
| Compliance Tools | Limited | Comprehensive |
| Scalability | Small to medium-sized businesses | Enterprises or highly regulated sectors |
Choosing which Microsoft 365 Licence
To make the best choice for your organisation, follow these steps:
- Assess Your Team Size
- If you have fewer than 300 users, start with Business plans. For larger teams, look at Enterprise options.
- Identify Your Feature Needs
- Do you need desktop apps? Advanced security? Collaboration tools? Map out your must-haves.
- Consider Your Budget
- Balance cost with the features you need now—and those you may need as you grow.
- Think About Future Growth
- If you’re scaling quickly, ensure your licence supports seamless upgrades.
- Take Advantage of Free Trials
- Microsoft often offers trial periods for its licences. Use this opportunity to test-drive a plan.
Common Pitfalls to Avoid
- Using Personal Licences for Business: While cheaper, these plans lack essential features for professional environments and can expose you to compliance risks.
- Underestimating Security: Even small businesses face cyber threats. Invest in a plan with the right protections.
- Overpaying for Unused Features: Don’t buy more than you need—start small and scale as required.
Final Thoughts
Choosing the right Microsoft 365 licence for your business is about understanding your organisation’s needs, balancing budget and features, and planning for growth. Whether you’re a small business or a large enterprise, there’s a plan that aligns with your goals.
If you’re still unsure which Microsoft 365 licence is best for your business, consult with an IT professional or a Microsoft partner to make the best decision.
Ready to optimise your productivity? Explore Microsoft’s official site or contact your IT provider to find the perfect licence today.
