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Microsoft 365 Subscriptions

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This article focuses on the Business subscription options, If you are looking for the home options look here

Another great tool that gets more in-depth, and can show a feature matrix is 

This information is subject to change as Microsoft constantly is adding or changing services and feature availability in their plans, as of April 2021 this is up to date.

Home vs Business vs Enterprise

There are 3 main categories of Microsoft 365 licensing, each with a specific target of user/business. Most notably the home and business licenses differ greatly in that the home can be purchased over the counts and is for individuals and families. Unlike their business equivalent, home subscriptions work with personal Microsoft accounts rather than your business domain name and your own dedicated Microsoft 365 tenancy. Even for very small businesses we strongly advise against using Home editions of 365 in your business. 

Microsoft 365 Business Licenses

Microsoft 365 Basic

Best for basic users who only need access to email and basic document editing features. Users with this license cannot install office, only use the online web app versions.

  • $6.9 AUD per user per month
  • Email and calendar – 50GB per mailbox
  • File storage and sharing – 1TB of OneDrive Space
  • Access to web versions of Office Applications – Outlook Online, Word Online, Excel Online, etc.

Microsoft 365 Business

The most common license we see, this includes all of the collaboration features mentioned above along with the ability to install Office applications on multiple computers. Installations are licenced per user, so you cannot use one account to activate Microsoft Office on multiple computers.

  • $17.20 AUD RRP per user per month
  • Everything in Microsoft 365 Basic
  • Licenses to install full versions of the Office applications – Word, PowerPoint, Excel.

Microsoft 365 Business Premium

For businesses with higher security and data retention requirements. This provides device management features, unlimited online email archiving and many security features.

  • $27.5 AUD RRP per user per month
  • Everything in Microsoft 365 Business
  • Advanced security features – Includes the ability to remotely wipe company data from lost devices.
  • Device management features

Exchange Online (Plan 1)

This is a stripped down version of the Microsoft 365 Basic license that only includes Email and calendar and nothing else.
As it’s usually only a dollar or two cheaper to miss out on all collaboration feature and office online, it’s rarely recommended anymore.

Microsoft 365 Apps for Business

Another subscript we recommend less and this, this only include the installable office software and none of the online collaboration features. This is generally only suitable for businesses that have an existing email server and have no need for Microsoft collaboration tools.

Microsoft Enterprise Licenses

These licenses are designed for medium to enterprise organizations with a bigger focus on compliance and security features and with that comes extra cost. Unlike Microsoft 365 plans you are not limited to 300 users within your organization. 

Below is a very brief summary of the difference and generally how they compare to the business plans.

License Details
Office 365 E1 Essentially the Enterprise version of Microsoft 365 Business Basic, with more compliance and security features.
Office 365 E3 Essentially the Enterprise version of Microsoft 365 Business Standard, with more compliance and security features.
Office 365 E5 Has everything E3 has but adds advanced security and analytic tools, hosted PBX telephony and a few other additions that large enterprises would be interested in.
Microsoft 365 Apps for Enterprise Microsoft 365 Business Premium

Office 365 is now Microsoft 365

It’s important to note that as of the 21st April 2020 has renamed many of their “Office 365” Subscriptions. It’s important to take note of these, as there is a large amount of information online using the old names still.

Before 21st April 2020 After 21st April 2020
Office 365 Business Essentials Microsoft 365 Business Basic
Office 365 Business Premium Microsoft 365 Business Standard
Office 365 Business Microsoft 365 Apps
Microsoft 365 Business Microsoft 365 Business Premium

More Information

*Note: Prices are RRP and subject to change by Microsoft. Some of the above services may be bundled by Microsoft partners with services and as such their price may differ from RRP.


Read more about the differences here.

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