Microsoft 365 licenses sometimes seem designed to confuse you. Business Standard, Business Premium, E3, E5, versions with and without Teams. Where do you start?

The good news: for most organizations, the choice boils down to three questions. How big are you? How strict are your security requirements? And do you want to make calls via Teams?

Business Premium: the strong foundation for up to 300 users

Business Premium is intended for organizations with up to 300 users. You get the Office apps, Exchange, SharePoint, and Teams. Plus, a robust security package:

  • Intune for managing laptops and phones.
  • Entra ID P1 with Conditional Access.
  • Defender for Business against malware and attacks.
  • Basic information protection features from Microsoft Purview.

For many SMB organizations, this is the best value for money.

E3: the enterprise foundation

Larger than 300 users? Then you're looking at the Enterprise licenses. E3 offers similar management and security features as Business Premium, without a user limit. Plus more options for compliance, archiving, and Windows Enterprise.

E5: everything included

E5 is the most complete package. The difference from E3 mainly lies in:

  • Advanced security: the full Defender XDR package and Entra ID P2 with risk-based access.
  • Advanced compliance: including automatic labeling, eDiscovery Premium and extensive audit logs.
  • Teams Phone: calling via Teams is included.
  • Power BI Pro: for reports and dashboards.

And what about Teams?

In the European Economic Area, Microsoft also offers the Enterprise suites without Teams. You then purchase Teams separately. Keep this in mind when comparing prices.

Want to make calls via Teams and don't have E5? Then take Teams Phone as an addition for employees who really need it.

Don't choose the same for everyone

You can combine licenses. A common mix:

  • Business Premium or E3 for office staff.
  • Frontline licenses (F1 or F3) for employees without a fixed workplace.
  • Teams Phone only for employees with a telephonic role.
  • Microsoft 365 Copilot only for roles where it saves time.

The most expensive isn't always the best

We see organizations paying for E5 and never enabling half of the features. And we see organizations running on Business Standard without basic security. Both are a shame. The best license is the one whose features you actually use.

Want to know if you have the right licenses or are paying too much? Schedule a conversation and we'll conduct an honest license check.

Frequently Asked Questions

Can I mix Business Premium and E3?

Yes, within Microsoft's applicable conditions. Business licenses do have a maximum of 300 per license type.

Is Teams Phone included in Business Premium?

No. You add Teams Phone for the users who need it.

Is E5 necessary for Copilot?

No. Microsoft 365 Copilot is an add-on that can be combined with Business Premium, E3, and E5.