Microsoft 365 License Options

As a business owner, you want to make sure that you are getting the most out of your technology investments, which is why you have undoubtably come across the many Microsoft 365 license options. One way to do this is by choosing the right Microsoft 365 licenses for your company. Another is to select based on user group, or individual user. CTS recommends the latter. In this blog, we will go over some tips for choosing the best Microsoft 365 licenses for your business.

Two Basic Steps:

You’ll find that selecting the license type for most small business owners will be relatively simple, and there are effectively two steps:

  1. Determine your needs: The first step in choosing the right Microsoft 365 licenses is to determine your company’s needs. This means considering the types of applications and services that your employees use on a daily basis, as well as any specific features or functionality that you need. Think about the Microsoft 365 applications that you’ll be using.
  2. Select A Plan: If you’re reading this, you probably fall under the Business license type category (others might include large corporation, an educational institution, or specific use cases). Each plan has its own set of features and pricing, the Business plans (as listed below) are the most for SMBs.

We recommend separating out user types, and providing each user type/group with a specific license. For example, field technicians may only need access to email, and would use an Exchange Online Plan (1 or 2). Contract Employees or Temporary Workers may only need Exchange Online Kiosk, which is web-based email only. For those users there is no need to pay for applications that come with the more expensive. For most of your office employees, start with looking at the Business Standard license. While global statistics may differ, we typically see most users fall into Business Standard. Ask yourself the following questions when consider Microsoft 365 Business Standard Licenses:

  1. Does this employee require Office applications? If so, Microsoft 365 Business Basic is a minimum.
  2. Would this employee be more efficient using the desktop application that they’re most likely used to using? If so, Microsoft 365 Business Standard is best.
  3. Does this employee need access to additional applications?

microsoft 365 license type options

Some other important items to consider:

  1. Consider user count: One factor to consider when choosing a Microsoft 365 license is the number of users that you have. Some plans are designed for small businesses with a few users, while others are better suited for larger organizations (eg: Enterprise or Education) with thousands of users.
  2. Think about flexibility: If your company is growing or if you anticipate needing to scale up or down in the future, it’s important to choose a Microsoft 365 license that offers flexibility. Look for plans that allow you to add or remove users as needed.
  3. Don’t forget about support: Finally, consider the level of support that you will need. Some Microsoft 365 plans include 24/7 support, while others offer only basic support. If you anticipate needing a high level of support, it may be worth paying for a plan with more comprehensive support.


Choosing the right Microsoft 365 licenses for your company is an important decision that can have a significant impact on your business. By considering your needs, comparing plans, and thinking about user count, flexibility, and support, you can choose the best Microsoft 365 licenses for your business. For additional details, visit the Microsoft website. Learn more about Office License Options and Office vs. WIndows as well.

Consider reaching out to one of our business technology consultants. You can contact CTS Companies here, or simply search for IT Services in Michigan.