Microsoft 365 is a licence giving you very powerful software; everything that you need to create and collaborate, including the Office suite and productivity applications like Microsoft Teams. However, all this comes at a price per month (or year, depending on how you pay for your subscription). So how much is a Microsoft 365 licence?
Here’s how much Microsoft 365 costs per month, if you purchase your licence directly from Microsoft. If you purchase your licence from a third party, such as a managed service provider, the cost would usually be lower.
Microsoft 365 Licence Cost
| Licence | Price (Month) |
|---|---|
| M365 Family | £7.99 |
| M365 Personal | £5.99 |
| M365 Business Basic | £3.80 (Ex VAT) |
| M365 Business Standard | £9.40 (Ex VAT) |
| M365 Business Premium | £15.10 (Ex VAT) |
| M365 Apps | £7.90 (Ex VAT) |
You’re probably wondering why there’s such a disparity in pricing between the licences. In this blog post, I will explain what each licence includes, therefore helping you to determine which you need. I’ll also explain some of the pros and cons of choosing certain licences over others.
What does each M365 licence include?
There isn’t just one Microsoft 365. In fact, there are 6 primary licences available:
- M365 Family
- M365 Personal
- M365 Business Basic
- M365 Business Standard
- M365 Business Premium
- M365 Apps
As you can probably tell based on the name of each of these licences, they’re subscriptions designed for different purposes. But which licence type is the one that you need? I’ll talk through each licence in more detail, hopefully helping you to determine which licence will meet your requirements the best.
Microsoft 365 Family: Is this the licence you need?
Microsoft 365 Family is the licence option aimed at families. This one subscription allows for 6 people to use the Office applications, cloud storage, advanced security, and much more.
Microsoft 365 Family includes all of the following:
- Multiple devices: All 6 people can use the included applications on up to 5 devices at any given time.
- Office Online: With this subscription you have access to Office Online, the cloud-based versions of Word, Excel, PowerPoint, Outlook, and the other applications. These cloud-based applications enable you to create and edit files directly in a browser rather than using the downloaded Office applications.
- Premium applications: As well as the online versions of applications, you’ll have access to the premium versions of apps which you can download to your computer and use when you are offline. The applications you’ll have access to are Word, Excel, PowerPoint, OneNote, Outlook, Access, and Publisher.
- OneDrive storage: As part of the family subscription, all 6 people each have 1 terabyte of storage for backing up files and photographs. You have access to these files anywhere as long as you have your Microsoft login.
- Latest updates on release: As soon as new application updates are available, you will have access to them at no extra cost.
- Technical support: As long as you have a family subscription, Microsoft offer inclusive phone and live chat support. Should you need any assistance, it’s available from Microsoft at no extra cost.
Microsoft 365 Family is the best subscription for families, even if you won’t need all 6 user licences. It’s significantly more cost-effective than Microsoft 365 Personal if you need M365 for more than just yourself.
M365 Personal: Is this the licence you need?
Microsoft 365 Personal is the licence option aimed at individuals needing M365 for personal use. This subscription allows for 1 person to use the Office applications, cloud storage, advanced security, and much more.
Microsoft 365 Personal includes all of the following:
- Multiple devices: The subscription holder can use the applications on up to 5 devices at any time.
- Office Online: With this subscription, you have access to Office Online, the cloud-based versions of Word, Excel, PowerPoint, Outlook, and other applications. These cloud-based applications enable you to create and edit files directly in a browser rather than using the downloaded Office applications.
- Premium applications: As well as the online versions of applications, you’ll have access to the premium versions of apps which you can download to your computer and use when you are offline. The applications you’ll have access to are Word, Excel, PowerPoint, OneNote, Outlook, Access, and Publisher.
- OneDrive storage: The subscription holder has 1 terabyte of storage for backing up files and photographs. You have access to these files anywhere as long as you have your Microsoft login.
- Latest updates on release: As soon as new application updates are available, you will have access to them at no extra cost.
- Technical support: As long as you have an M365 Personal subscription, Microsoft offer inclusive phone and live chat support. Should you need any assistance, it’s available from Microsoft at no extra cost.
Microsoft 365 Personal is the best subscription for individuals wanting M365 for personal use. If you want M365 for more than one person, it might be better to invest in Microsoft 365 Family.
M365 Business Basic: Is this the licence you need?
Microsoft 365 Business Basic is the licence option aimed at SMEs wanting a basic M365 subscription. This subscription enables one user to access and use the Office Online applications, OneDrive storage, and Microsoft Teams. This basic licence is ideal for remote workers who don’t need to have desktop versions of the Office applications.
Microsoft 365 Business Basic includes all of the following:
- Office Online: With this subscription, you have access to Office Online, the cloud-based versions of Word, Excel, PowerPoint, Outlook, and other applications. These cloud-based applications enable you to create and edit files directly in a browser rather than using the downloaded Office applications.
- OneDrive storage: The subscription holder has 1 terabyte of storage for backing up files and photographs. You have access to these files anywhere as long as you have your Microsoft login.
- Latest updates on release: As soon the Online applications are updated, you have access to them at no extra cost.
- Technical support: As long as you have an M365 Business Basic subscription, Microsoft offer inclusive phone and live chat support. Should you need any assistance, it’s available from Microsoft at no extra cost.
Microsoft 365 Business Basic is best for SMEs with a lot of remote workers who don’t require access to the desktop versions of the Office applications. Also, it’s worth noting that you can only have 300 of these subscriptions. If your business needs more, you’ll need to look at the Enterprise options. If you want desktop versions of the applications, you’re best off looking at the M365 Business Standard or M365 Apps subscriptions.
M365 Business Standard: Is this the licence you need?
Microsoft 365 Business Standard is the licence option aimed at SMEs needing something more advanced than what Business Basic offers. This subscription allows for 1 person to use the Office applications (Online and desktop versions), cloud storage, and much more.
Microsoft 365 Business Standard includes all of the following:
- Office Online: With this subscription, you have access to Office Online, the cloud-based versions of Word, Excel, PowerPoint, Outlook, and other applications. These cloud-based applications enable you to create and edit files directly in a browser rather than using the downloaded Office applications.
- Premium applications: As well as the online versions of applications, you’ll have access to the premium versions of apps which you can download to your computer and use when you are offline. The applications you’ll have access to are Word, Excel, PowerPoint, OneNote, Outlook, Access, and Publisher.
- A business mailbox with custom domain: Email hosting is included, with a 50GB mailbox. You can even choose your own custom domain. You can use this mailbox on a variety of devices, ensuring you can always remain in contact and manage your appointments on the go.
- OneDrive storage: The subscription holder has 1 terabyte of storage for backing up files and photographs. You have access to these files anywhere as long as you have your Microsoft login.
- Latest updates on release: As soon as new application updates are available, you will have access to them at no extra cost.
- Technical support: As long as you have an M365 Business Standard subscription, Microsoft offer inclusive phone and live chat support. Should you need any assistance, it’s available from Microsoft at no extra cost.
Microsoft 365 Business Standard is ideal for businesses needing something more advanced than Business Basic. This subscription includes desktop versions of the Office applications, making it easier to work on the go without a connection and collaborate on the same files when you do have a connection. Needing advanced threat protection and device management? Microsoft 365 Business Premium is the subscription you need to look at.
M365 Business Premium: Is this the licence you need?
Microsoft 365 Business Standard is the licence option aimed at SMEs needing something more advanced than what Business Standard offers. This subscription allows for 1 person to use the Office applications (Online and desktop versions), cloud storage, and much more. In addition to what you get with Business Standard, Business Premium includes advanced threat protection and device management.
Microsoft 365 Business Premium includes all of the following:
- Office Online: With this subscription, you have access to Office Online, the cloud-based versions of Word, Excel, PowerPoint, Outlook, and other applications. These cloud-based applications enable you to create and edit files directly in a browser rather than using the downloaded Office applications.
- Premium applications: As well as the online versions of applications, you’ll have access to the premium versions of apps which you can download to your computer and use when you are offline. The applications you’ll have access to are Word, Excel, PowerPoint, OneNote, Outlook, Access, and Publisher.
- A business mailbox with custom domain: Email hosting is included, with a 50GB mailbox. You can even choose your own custom domain. You can use this mailbox on a variety of devices, ensuring you can always remain in contact and manage your appointments on the go.
- OneDrive storage: The subscription holder has 1 terabyte of storage for backing up files and photographs. You have access to these files anywhere as long as you have your Microsoft login.
- Latest updates on release: As soon as new application updates are available, you will have access to them at no extra cost.
- Technical support: As long as you have an M365 Business Premium subscription, Microsoft offer inclusive phone and live chat support. Should you need any assistance, it’s available from Microsoft at no extra cost.
- Advanced threat protection: M365 Business Premium includes software for advanced threat protection, helping protect your emails, remotely remove data from devices, apply restrictions to certain users, and enforce malware protection.
- PC and mobile device management: Business Premium licences enable you to manage PCs and mobiles through a portal. You can remotely configure devices, deploy automatic updates, and apply security policies without individually accessing devices.
Microsoft 365 Business Premium is ideal for businesses needing something more advanced than Business Premium. This subscription includes desktop versions of the Office applications, making it easier to work on the go without a connection and collaborate on the same files when you do have a connection. It also includes advanced threat protection and PC and mobile device management.
M365 Apps: Is this the licence you need?
Just needing the premium Office applications with a few little extras? The M365 Apps subscription is worth having a look at. Here’s what’s included.
- Premium applications: You’ll have access to the premium versions of apps which you can download to your computer and use when you are offline. The applications you’ll have access to are Word, Excel, PowerPoint, OneNote, Outlook, Access, and Publisher.
- OneDrive storage: The subscription holder has 1 terabyte of storage for backing up files and photographs. You have access to these files anywhere as long as you have your Microsoft login.
- Latest updates on release: As soon as new application updates are available, you will have access to them at no extra cost.
- Technical support: As long as you have an M365 Apps subscription, Microsoft offer inclusive phone and live chat support. Should you need any assistance, it’s available from Microsoft at no extra cost.
This is a basic licence primarily giving you access to the desktop versions of the Office applications. However, there are a few extras that still make this a viable option for businesses.