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Office 365 License Comparison and How to Save on Your Subscription

Office 365 License Comparison

Office 365 begins with the right plan. But which one is right for your company? We hope the Microsoft Office 365 license comparison will help you to decide. 

Let’s take a look at the Office 365 license comparison and find out which one fits you best. Also, we’ll touch on how data migration helps to save on Office 365 licenses.

How Much Do Office 365 Business Licenses Cost?

Office 365 is a subscription-based SaaS solution. In other words, you pay for the number of users, or to be more accurate, for the number of active licenses. 

The pricing of Office 365 products depends on their features. Also, sometimes you get a discount for making a yearly payment. Here are the Office 365 subscription costs. Note: Microsoft has recently rebranded some of the products. We included old names as well.

Annual Commitment (user/month)Monthly Commitment (user/month)
Microsoft 365 Business Basic (formerly Office 365 Business Essentials)$5.00$6.00
Microsoft 365 Apps (formerly Office 365 Business)$8.25$10.00
Microsoft 365 Business Standard

(formerly Office 365 Business Premium)

Microsoft 365 Apps for enterprise

(formerly Office Enterprise Pro Plus)

$12.00Annual Commitment Only
Office Enterprise E1$8.00Annual Commitment Only
Office Enterprise E3$20.00Annual Commitment Only
Office Enterprise E5$35.00Annual Commitment Only

The price of subscription business and enterprise plans vary from $5 to $35 per user per month. Business plans are commonly chosen by SMBs who want to pay only for the most essential things for everyday use. Accordingly, the price is lower. Enterprise subscriptions are perfect for bigger companies. 

The Microsoft 365 Apps subscription gives you access to Office apps (Excel, Word, PowerPoint, OneNote, Access), Outlook email service, and OneDrive to store your files. 

What is the difference between E1, E3, and E5 subscriptions? Basically, more advanced subscription plans combine the functionality of previous plans with new features. 

E1 provides the most necessary functionality: Outlook, Calendar, OneDrive, SharePoint, task management, identity, and access management. E3 includes the same tools and options plus desktop versions of Office apps and more comprehensive management tools.

E5 is the comprehensive enterprise plan that includes all functionality mentioned above plus advanced management and threat protection tools, analytics, and risk assessment tools for compliance purposes. 

How to Save on Office 365 Licenses?

Optimizing the costs is what any business owner considers. Let’s take a look at two good ways to manage Office 365 more cost-efficiently.

Determine What You Need to Choose a Plan

Each organization has its own workflow and needs. That’s why you need to take a look at each subscription plan, align its functionality with your needs, and choose a plan that will suit them.

Sometimes, you may need a specific feature that is available in more advanced plans. But you don’t need all the other features. In this case, you’ll be looking for a way to get this feature without subscribing to advanced plans.

Let’s say you need advanced data loss prevention, which is available in E3 or higher license plans. But you don’t want to pay $20.00 per user. In this case, you may choose E1 for $8.00 and buy a cloud backup for Office 365 for an additional $3 per month.

Migrate Data from Inactive Licences

The user of an Office 365 business license which you purchased some time ago, may not be active now. But you still need to pay for the license. It’s not uncommon for organizations to pay for the accounts of ex-employees. Maintaining such accounts may cost a lot. 

Example: If your organization has 100 users subscribed to E5, and 20% of them are inactive, you pay $700 extra each month.

You can calculate the cost depending on your organization’s size and Office 365 subscription plan. 

Why do organizations continue to pay for inactive users? Usually, they want to keep access to services, contacts, and data. 

It is possible to cut the costs of maintaining inactive accounts by migrating data from old accounts to the new ones. However, data migration is a common reason for data loss, if performed incorrectly.

The best way to ensure safe data migration is SpinBackup for Office 365, a backup solution that includes data migration functionality.

  • Your data migration is 100% secure. 
  • You can migrate several files or all of an account’s data at once.
  • You can preserve the data folder hierarchy.
  • You can simultaneously transfer data from several users.

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