Welcome to our Microsoft 365 Buyer’s Guide, your one-stop resource for understanding the pricing, licensing options, and features tailored to different organizational needs.
Whether you’re running a large enterprise, a growing business, or managing your home office, Microsoft 365 offers a range of plans designed to suit your requirements.
Microsoft 365 licensing is notoriously tricky, with varieties and flavors to suit everyone’s particular needs. Let us spare you the headaches and target three specific, common use cases, Enterprise, Business, and Home.
Microsoft 365 for Enterprise
What is an enterprise customer?
An enterprise customer, according to Microsoft, is an organization with 500 or more users or devices seeking a manageable volume licensing program that combines cloud services and software licenses under one agreement, ideally spanning a minimum of three years.
If you’re trying to decide if an Enterprise license is right for your business situation, we suggest reading the Enterprise Agreement program guide.
Enterprise pricing*
With Enterprise Enrollment, you can “buy Microsoft end-user technologies on a per user, per device, or hybrid basis.” Microsoft has three Enterprise M365 plans. The prices listed below are based on signing an annual commitment.
Microsoft 365 E3 is $33.75 per user/month
Microsoft 365 E5 is $54.75 per user/month
Microsoft 365 F3 is $8 per user/month
It is worth noting that E3 and E5 plans don’t include Microsoft’s powerhouse collaboration app, Teams.
Microsoft Teams Enterprise is $5.25 per user/month
License features*
Microsoft 365 E3 is a basic corporate plan, heavy on productivity apps with excellent security capabilities. M365 apps can be installed “on up to five PCs or Macs, five tablets, and five smartphones per user.”
Key apps include:
- Word
- Excel
- PowerPoint
- Outlook
- OneNote
- SharePoint
- OneDrive
- Windows for Enterprise
Features include:
- Microsoft 365 apps for desktop and mobile
- 1 TB cloud storage
- Core security and identity management
- Copilot for M365 available as a paid add-on
Microsoft 365 E5 is like an E3 plan on steroids. It contains all of the apps and features that the E3 plan offers, with “advanced security, compliance, and analytical capabilities.”
A few key E5 apps are:
- Power BI Pro
- Microsoft Entra ID P2
- Microsoft Defender
- Microsoft Purview
Features include:
- Advanced security and compliance capabilities
- Scalable business analytics
- Copilot for M365 available as a paid add-on
Microsoft 365 F3 is intended for frontline workers. It includes M365 web and mobile apps.
Key apps include:
- Word
- Excel
- PowerPoint
- Outlook
- OneNote
- Windows
- Teams (mobile AND desktop versions)
Features include:
- Standard security and compliance capabilities
- Centralized hub for collaboration and productivity
- Custom apps to automate tasks and processes
To more fully compare features of all three Enterprise plans, refer to the extensive details in table form in Microsoft’s Modern Work Enterprise Plan Comparison Guide.
For a simple comparison of Enterprise plans and pricing information, view Microsoft’s website here.
Microsoft 365 for Business
What is a business customer?
Business licenses cater to small and mid-sized businesses with up to 300 employees, providing identity, access, and user management.
Business pricing*
Business licenses all offer a one-month free trial. After the free trial ends, the subscription automatically converts into a 12-month paid subscription. Don’t worry, if it’s not working out for you, it’s easy to cancel anytime during the trial in the M365 admin center. The prices listed below are based on an annual subscription with auto-renewal set up.
Nothing can be too simple, though. Just as Microsoft Teams isn’t available with every enterprise plan, it isn’t available with every Business plan, either. We’ll break the following plans into two categories, one with Teams, one without.
With MS Teams
Microsoft 365 Business Basic is $6 per user/month
Microsoft 365 Business Standard is $12.50 per user/month
Microsoft 365 Business Premium is $22.00 per user/month
Without MS Teams
Microsoft 365 Business Basic without Teams is $4.75 per user/month
Microsoft 365 Business Standard without Teams is $10.25 per user/month
Microsoft 365 Business Premium without Teams is $19.75 per user/month
Microsoft 365 Apps for Business is $8.25 per user/month
License features*
Microsoft 365 Business Basic is exactly what its name states, a baseline license that provides identity, access, and user management for up to 300 employees.
Key apps include:
- Word
- Excel
- PowerPoint
- Outlook
- Teams
- OneDrive
- SharePoint
- Exchange
Features include:
- Custom business email address
- Web and mobile versions of O365 apps
- Chat, call, and video conference with MS Teams
- 1 TB cloud storage per user
- Automatic spam and malware filtering
- Anytime phone and web support
Microsoft 365 Business Standard includes everything that the Business Basic license offers and more, specifically desktop versions of the apps.
Key apps include:
- Loop (next-level collaborative workspaces)
- Clipchamp (video editing)
Features include:
- Webinars with attendee registration and reporting
- Copilot for M365 available as a paid add-on
Microsoft 365 Business Premium builds on the Business Standard license, specifically in the security sector with advanced identity and access management.
Key apps include:
- Entra ID
- Intune
- Defender
- Purview
Features include:
- Enhanced cyberthreat protection against viruses and phishing attacks
- Enterprise-grade device and endpoint protection
- Discover, classify, and protect sensitive information
- Copilot for M365 available as a paid add-on
Microsoft 365 Apps for Business is a cost-effective license that gives your team desktop versions of Microsoft essential apps.
Key apps include:
- Word
- Excel
- PowerPoint
- Outlook
- OneDrive
Features include:
- 1TB cloud storage per use
- Anytime phone and web support
Looking for plans without Teams? Compare the plans in one place on Microsoft’s website. Looking for ONLY Teams?? View information and sign up here.
Refer to the Microsoft Modern Work Business Plan Comparison Guide for a detailed feature comparison.
For a simplified comparison of Business plans and pricing information, view Microsoft’s website here.
Microsoft 365 for Home Office
What is a home use customer?
For personal use, Microsoft 365 Home licenses provide standard apps and robust security features for individuals and families. If you and your family want to use Microsoft on your personal computer for balancing your budget, writing up a proposal, or preparing presentations for a class, this category is for you.
Home license pricing*
Microsoft 365 Personal is $69.99 for an annual subscription or $6.99/month
Microsoft 365 Family is $99.99 for an annual subscription or $9.99/month
License features*
Microsoft 365 Personal is for a single user. You can use it on up to five devices at the same time.
Key apps include:
- Word
- Excel
- PowerPoint
- Outlook
- Teams
- OneDrive
- Defender
- Editor
- Clipchamp (video editing)
- OneNote
Features include:
- 1 TB cloud storage
- Use on PC, Mac, Chromebook, iPad, iPhone, and Android tablets and phones
- Ongoing technical support
Microsoft 365 Family offers the best value for 2-6 users. You can use it on up to thirty devices at the same time. It includes all the apps and features of the personal plan, plus up to 6 TB of cloud storage (1TB private storage/person).
Explore the basics of the home use plans and get started with your subscription.
Bonus: Other Microsoft 365 Use Cases
As we mentioned before, Microsoft has a variety of M365 licenses designed for different needs. While this article dove into Enterprise, Business, and Home Office scenarios, it’s worth noting the other available options.
Microsoft 365 for Education is tailored to faculty and student needs.
Microsoft 365 for Government is designed to “provide all the features and capabilities of Microsoft 365 services in a segmented government cloud community that enables organizations to meet U.S. compliance and security standards.”
Microsoft 365 for Non-profit provides discounted licenses to certified nonprofits via Microsoft’s Tech for Social Impact program.
Need more help with Microsoft 365 Licensing?
The landscape of licensing can be intricate, as organizations often demand a blend of licenses tailored to individual or team requirements. For precise licensing solutions, we suggest collaborating with a reputable Microsoft Partner capable of evaluating your technical and operational ecosystem.
If you’ve found this guide helpful but still have questions or need further assistance in deciphering the intricacies of Microsoft 365 licensing and pricing, don’t hesitate to reach out to us. Our team of experts is here to provide personalized consultation tailored to your specific requirements. Whether you’re a small business looking to optimize your budget or an enterprise seeking comprehensive licensing solutions, we can help.
We’re committed to simplifying the licensing process and ensuring that you get the most out of your Microsoft 365 investment. Get in touch today, and let’s empower your organization with the right licensing strategy.
*Disclaimer: Prices and features are as of April 2024 and are subject to change. Please refer to Microsoft’s official resources for the most up-to-date information.
