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Which Office 365 License is Right for My Organization?

When they begin to search for Office 365, many organizations just aren’t aware of how many variations of Office 365 licenses are out there.

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By Minerva Studio

“There are so many versions of Office 365! Which one do I choose?”

When they begin to search for Office 365, many organizations just aren’t aware of how many variations of Office 365 licenses are out there. Organizations can choose from Office 365 Business Essentials, Office 365 Business Premium, Enterprise E1, E3 or E5, among other licenses. So, a question we hear quite often is, what are the differences between the licenses, and how do I know which one is right for my organization?

Many of our clients have found that a summary of the various versions of Office 365 and an Office 365 Decision Tree helped them decide which license to purchase. Read along to see the summary and download the Decision Tree.


Versions of Office 365

There are several versions of Office 365 available, plus there are packages and add-ons that you can include with your subscription. However, this post will focus on the five most common Office 365 licenses: Office 365 Business Essentials, Office 365 Business Premium, Office 365 Enterprise E1, Office 365 Enterprise E3, and Office 365 Enterprise E5.


Business Licenses (For Businesses Under 300 Users)


Office 365 Business Essentials

Applications included: None

Services included: Exchange, OneDrive, SharePoint, Skype for Business, Microsoft Teams, Office Online, Yammer.


Office 365 Business Premium

  • Applications included: Full versions of Office (Word, Excel, PowerPoint, etc.), Outlook Customer Manager, Bookings, MileIQ, Invoicing, Microsoft Listings.
  • Services included: Exchange, OneDrive, SharePoint, Skype for Business, Microsoft Teams, Yammer, Planner, StaffHub.


Enterprise Licenses (For Businesses with 300+ Users)


Office 365 Enterprise E1

  • Applications included: None
  • Services included: Exchange, OneDrive, SharePoint, Skype for Business, Microsoft Teams, Office Online, Yammer, Planner, Delve, StaffHub.


Office Enterprise E3

  • Applications included: Word, Outlook, Excel, PowerPoint, OneNote, Access (PC Only).
  • Services included: Exchange, OneDrive, SharePoint, Skype for Business, Microsoft Teams, Yammer, Planner, eDiscovery, StaffHub.


Office Enterprise E5

  • Applications included: Word, Outlook, Excel, PowerPoint, OneNote, Access (PC Only).
  • Services included: Exchange, OneDrive, SharePoint, Skype for Business, Microsoft Teams, Yammer, Power BI, Power Apps, StaffHub, Sway, Planner, Cloud App Security, Phone System, Calling Plan, Advanced Data Governance, MyAnalytics, Exchange Online Advanced Threat Protection.


Follow this Decision Tree to Decide Which Office 365 License Is Right for Your Organization

It’s important to note that this Office 365 Decision Tree isn’t an exact science – every customer is different, and some customers will require more customization than others. But the below graphic can walk you through some basic questions to help you understand which version could suit your unique business needs.

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Click here to download the Office 365 Decision Tree.


Want More Information on Office 365?

In this post, we’ve talked about a lot of the apps and services that come with each Office 365 license. However, you may not be as familiar with some of the apps and services we’ve mentioned. So, here are blog posts to help you understand more about Office 365 apps and services:

  • In this Office 365 Apps & Services post, we briefly break down what each of these apps and services are.
  • If you want to learn more about SharePoint and OneDrive, check out this SharePoint vs. OneDrive post, where we explain what they are and when you should use which one.
  • Maybe you’ve considered implementing a notetaking app in your organization but you’re not sure if you should choose OneNote or Evernote – this OneNote vs. Evernote post can help shed some light on the subject.
  • Or maybe you’re more interested in exploring a concept, like how to stay more productive at work. This 4 Best Organization Apps post is a good start.
  • If these are not what you are looking for, check out other Office 365 blog posts that can help you explore this great product.


About ProServeIT

As a multi-award-winning Microsoft Gold Partner, ProServeIT has been helping organizations of all sizes increase their efficiency, eliminate their “IT debt” and apply a security lens to everything they do. ProServeIT understands that every organization has different needs and challenges, and will work with you to understand your organization’s culture, your customers, and what’s most important to you as a company. Providing customized solutions that help you simplify your IT infrastructure, increase your team’s productivity, and grow your business, ProServeIT can use their expertise and experience to digitally transform your business.

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