Microsoft 365 Licenses : Everything you need to know

In April 2020 Microsoft rebranded Office 365 as Microsoft 365. In this post we will summarize all the  licensing options available for Microsoft 365 and the apps included with each license.

Table of Contents

Microsoft 365 Home Licenses

Microsoft 365 is available for home use with versions for Personal, or Family. All these versions are designed around the Microsoft core apps – Word, Excel, PowerPoint, OneNote, Outlook, Publisher, Access, Onedrive, Skype, and Editor.

Microsoft 365 Personal

Microsoft 365 Personal (formerly Office 365 Personal) is a subscription-based product. It includes the core apps for use by one person and comes with 1TB of cloud storage. Even though the license is for one person it can be used on up to 5 devices at the same time. Apps can be used online, on mobile devices, or installed locally on your pc and they work on Windows, Mac, iOS, or Android devices.

Microsoft 365 Family

Microsoft 365 Family (formerly Office 365 Home) is like Personal but includes a subscription for up to 6 people. It comes with the same 1TB of cloud storage for each of the 6 people. In addition, family includes one more app called Microsoft Family Safety which provides screen time limits, content filtering, shared event calendars, and location tracking.

Microsoft 365 Education

Microsoft 365 Education is a free version of Office for students and teachers. You sign up using your eligible school email address and have access to all the same Microsoft 365 core apps including Teams for remote learning. This version also comes with School Data Sync which integrates Office 365 groups, class notebooks, school rosters, and student information system (SIS) app partners. Your school can choose between an A1, A3, or A5 license package.

Microsoft 365 Education A1

The basic A1 license provides web only versions of the Office apps and several services for collaboration.

Microsoft 365 Education A3

The A3 license provides desktop versions of the apps and support for installation on multiple devices.

Microsoft 365 Education A5

The A5 license adds Power BI and security management.

Microsoft 365 Business Licenses

Microsoft 365 is available for business in a Basic, Standard, or Premium version. All these versions contain the Microsoft core apps and options for Exchange, Sharepoint, Onedrive for Business, Intune, Azure, and Teams Phone. The Business products are designed for businesses with up to 300 users.

Microsoft 365 Business Basic

Microsoft 365 Business Basic (formerly Office 365 Business Essentials) includes web and mobile versions of Word, Excel, and PowerPoint and comes with 1TB of cloud storage per user. Business Basic also includes Teams, Exchange, Onedrive, and SharePoint cloud services for each user. Additional licenses can be added to Teams to make it into a fully functional phone system.

Microsoft 365 Business Standard

Microsoft 365 Business Standard (formerly Office 365 Business Premium) includes all the core apps and cloud services. Desktop versions of the Office apps are included and you can install them on 5 mobile devices, 5 tablets, and 5 PCs or Macs per user.

Microsoft 365 Business Premium

Microsoft 365 Business Premium (formerly Microsoft 365 Business) is the same as Standard but adds Intune and Azure Information Protection. These services provide advanced threat protection and mobile device management.

Microsoft 365 Enterprise Licenses

Larger organizations can get Microsoft 365 in an Enterprise version. Microsoft 365 Enterprise  is a bundle of Office 365 Enterprise, Windows 10 Enterprise and Enterprise Mobility + Security.  Enterprise is available in E3, E5, or F3 versions. All these versions contain the Microsoft core and business apps and includes several cloud services for collaboration between users. These Enterprise products are designed for large organizations with 500 or more .

Microsoft 365 E3

Microsoft 365 E3 contains all the core and business apps as well as intelligent cloud services. You generally work with a Microsoft partner as Wholsalekeys to purchase an Enterprise license.

Microsoft 365 E5

Microsoft 365 E5 contains all the E3 apps and services but adds Endpoint Security, Phone System, Malware Protection, and Compliance Services. These additional apps and services can be added to an E3 license individually but you get a discount when purchasing the entire E5 package. The Enterprise E5 license is the most comprehensive license in the Microsoft 365 universe.

Microsoft 365 F3

Microsoft 365 F3 is a watered-down license for first-line workers. It includes only web and mobile versions of Word, Excel, PowerPoint, Outlook, Onenote, and Teams at a reduced cost. It still contains many of the apps and services used for collaboration with other Enterprise users. That covers all the licenses and apps included with Microsoft 365.

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