The Hidden Costs of M365 Licensing
Microsoft 365 licensing is notoriously complex. Many organisations fall into the trap of purchasing Business Standard or E3, and then bolting on third-party solutions for email filtering, device management (MDM), and archiving.
Business Premium vs. E3
For most fast-growing Australian businesses under 300 seats, Microsoft 365 Business Premium is the sweet spot. It includes:
- Intune for device management
- Defender for Business (robust endpoint protection)
- Azure AD Premium P1 (Conditional Access)
Upgrading to E3 primarily makes sense if you break the 300-seat threshold or require advanced compliance features.
When does E5 make sense?
Microsoft 365 E5 is expensive on paper. But when you factor in the native inclusion - efender for Endpoint P2, advanced telephony, Power BI Pro, and risk-based Conditional Acces - t often costs less than maintaining E3 plus a patchwork of external vendors (like CrowdStrike, Duo, and point security solutions).