Which Microsoft 365 licensing strategy is right for our company?
The answer to this question depends on many factors. Microsoft 365 licensing divides at the 301-user mark, so the number of employees you have will determine whether you can choose a Business plan (300 or fewer users) or must choose between E3 and E5 (301+ users).
Your compliance and security requirements will also influence the correct choice of Microsoft 365 licensing.
To complicate matters further, there are multiple ways to achieve the same set of security and compliance features using add-ons to base licensing packages.
We’ll explore all that below, but for starters, you can use this table to compare the options at a high level.
Comparison table: Microsoft 365 licensing options
License Family | Best For | Key Difference | User Limit |
Business Basic | Small businesses | Web apps, email, Teams, file sharing | Up to 300 users |
Business Standard | Most SMB office workers | Adds desktop Office apps | Up to 300 users |
Business Premium | SMBs with security needs | Adds security, device management, and compliance features | Up to 300 users |
Apps for Business | Organizations that only need Office apps | Desktop Office apps only, no email or Teams | Up to 300 users |
Microsoft 365 E3 | Midmarket and enterprise organizations | Enterprise productivity, Windows Enterprise, and management tools | Unlimited |
Microsoft 365 E5 | Organizations with advanced security/compliance requirements | Everything in E3 plus Microsoft’s most advanced security and compliance capabilities | Unlimited |
Microsoft 365 F3 | Frontline and shared-device workers | Lower-cost productivity and communication tools for deskless employees | Unlimited |
Simple rule of thumb:
- Business Basic = email + Teams
- Business Standard = email + Teams + desktop Office
- Business Premium = Standard + security
- M365 E3 = Enterprise version of Premium
- M365 E5 = Enterprise version with maximum security and compliance
- M365 F3 = Frontline/field workers
To go deeper, check out our interactive Microsoft 365 Licensing Comparison tool.
Can we get discounted Microsoft 365 licensing?
Yes! Corsica Technologies offers up to 15% off MSRP for Microsoft 365 for US customers. It’s easy to transition your existing licenses as well.
- You can take a phased approach as needed
- Transition month-to-month licenses at the end of the month
- Ask your reseller about releasing you from yearly commitments
- Corsica Technologies can assist with reseller negotiations
- Transition yearly licenses when you’re able
Learn more here: Get Up to 15% Off M365 for Business.
What are Corsica Technologies’ Microsoft 365 licensing personas?
Microsoft 365 licensing gets very complex. To help recommend the right Microsoft 365 licensing to customers, Corsica Technologies has developed 11 personas to group licenses into bundles that serve common needs across industries.
These bundles are not Microsoft products; rather, they are Corsica Technologies’ recommended groupings of Microsoft licenses to serve common needs for different types of workers at companies with varying levels of required security and compliance. These personas are the basis for all licensing recommendations that Corsica Technologies makes, whether directly to customers or in this article.
Here are the personas that Corsica Technologies starts with when recommending licenses.
Persona | License Bundle | Intended User | Key Capabilities |
Basic Cloud Worker | Microsoft 365 Business Basic + Entra ID P1 + Defender for Office 365 P1 | Web-based users who need email, Teams, and cloud collaboration | Exchange, Teams, SharePoint, 1 TB OneDrive, Entra ID P1, Defender for Office 365 P1; no desktop Office apps or Intune. Max 300 users. |
Secure SMB Professional | Microsoft 365 Business Premium | Security-conscious SMB employees | Desktop Office apps, Exchange, Teams, SharePoint, Intune, Entra ID P1, Defender for Business, Defender for Office 365 P1. Max 300 users. |
Secure SMB Pro + Defender Suite | Business Premium + Microsoft Defender Suite for Microsoft 365 Business Premium | SMBs requiring stronger security controls | Business Premium plus Entra ID P2, Defender for Endpoint P2, Defender for Office 365 P2, archive mailboxes, and advanced security features. Max 300 users. |
Secure SMB Pro + Purview Suite | Business Premium + Microsoft Purview Suite for Microsoft 365 Business Premium | SMBs with elevated compliance needs | Business Premium plus Premium eDiscovery and full Data Loss Prevention (DLP) capabilities. Max 300 users. |
Secure SMB Pro Complete | Business Premium + Microsoft Defender and Purview Suites for Microsoft 365 Business Premium | SMBs needing both advanced security and compliance | Entra ID P2, Defender for Endpoint P2, Defender for Office 365 P2, Premium eDiscovery, full DLP, archive mailboxes, and the most complete Business-tier security/compliance stack. Max 300 users. |
Enterprise Professional + Defender Suite | Microsoft 365 E3 + Microsoft Defender Suite | Large organizations needing enterprise productivity and advanced security | Enterprise-scale licensing with Entra ID P2, Defender P2 capabilities, archive mailboxes, Windows Enterprise E3 rights, standard eDiscovery, and unlimited users. |
Enterprise Executive/Security – Full Features (Security and Compliance) | Microsoft 365 E5 | Executives, security teams, compliance-heavy organizations | Entra ID P2, Defender P2, Premium eDiscovery, DLP, Power BI Pro, Phone System, Windows Enterprise E5, and unlimited users. Highest-featured enterprise persona. |
Frontline Basic Worker | Microsoft 365 F1 + Microsoft Defender Suite Add-on FLW | Kiosk, warehouse, production-floor, and shift workers with limited application needs | Basic editing, Teams, security suite protections, 2 GB mailbox/storage, read-only SharePoint access. Unlimited users. |
Frontline Advanced Worker | Microsoft 365 F3 + Microsoft Defender Suite Add-on FLW | Frontline users needing full editing and collaboration capabilities | Full edit rights, Teams, SharePoint, advanced security protections, Entra P2 capabilities, and shared Windows Enterprise rights. Unlimited users. |
Login Only | Microsoft Entra ID P1 | Identity-only accounts, shared applications, or authentication scenarios | Authentication, Entra ID P1, Conditional Access support, no email, Office apps, Teams, or SharePoint. Unlimited users. |
Email Only | Exchange Online Plan 1 + Entra ID P1 + Defender for Office 365 P1 | Users who only need secure email | 50 GB mailbox, Entra ID P1, Defender for Office 365 P1, no Teams, SharePoint, OneDrive, Intune, or Office applications. Unlimited users. |
If we know we’re going to surpass the 300 user mark, when should we make the change to E3 or E5?
Most organizations shouldn’t wait until they hit 301 users. Rather, you should start planning the transition when you’re approaching 250-275 users, then complete the move before you exceed Microsoft’s 300-seat limit for the Business family.
Here’s what that looks like in detail:
Current Situation | Recommended Action |
Under 200 users | Stay on Business licensing if it meets requirements. |
200-250 users | Begin reviewing whether E3 or E5 will eventually be needed. |
250-275 users | Budget, design, and test the migration strategy. |
275-300 users | Purchase Enterprise licenses and start transitioning users. |
300+ users or rapid growth expected | Move to Enterprise licensing as soon as practical. |
There are several reasons not to wait until the last minute:
- Budgeting is easier because M365 E3 and E5 are significantly more expensive than Business Premium.
- Enterprise plans introduce different capabilities around Windows Enterprise, Intune, Entra ID, security, compliance, and identity management that may require planning.
- Many organizations use the transition as an opportunity to reassess security, compliance, device management, and frontline-worker licensing instead of simply replacing Business Premium with E3 everywhere.
Here at Corsica Technologies, we use a common rule of thumb when advising companies on their M365 licensing strategy:
Move to E3 or E5 for business reasons, not just because of the user count.
If you’re expecting to exceed 300 users within the next 6-12 months, that’s usually the right time to architect your long-term licensing model. You should determine whether E3 or E5 is appropriate, then start purchasing Enterprise licenses before the 300-user limit becomes a constraint.
In practice, most organizations moving from Business Premium land first on Microsoft 365 E3, while organizations with advanced security, compliance, legal, regulatory, or SOC needs often evaluate Microsoft 365 E5 for specific user groups rather than licensing every employee at E5.
What Microsoft 365 licensing is right for manufacturing companies?
Which Microsoft 365 licensing strategy is right for your manufacturing company?
Can you choose a Business plan, or do you need E3 or E5?
How do you get the capabilities you need to stay secure and maintain regulatory compliance?
We’ve got all the answers here: Microsoft 365 licensing for manufacturing companies.
With over a decade of experience in IT, Garrett Wiesenberg brings deep technical expertise and a strong commitment to strategic problem-solving. For the past four years, he has focused on architecting and delivering advanced solutions for managed clients, consistently aligning technology with business outcomes. Garrett’s career has spanned a variety of roles—from service desk technician to senior network engineer—and now, as Vice President of
Solution Consulting, he leads with a hands-on, business-focused approach. He holds several industry-recognized certifications, including CCNA Route & Switch, CCNA Security, CCNA Wireless, MCSA: Server 2012 R2, MCSA: O365 Administration, NSE 1–3, and CMNA.
