It’s time to review your Microsoft Licensing
26 February 2026
By Jenna Polson | News, Tech Tips | No Comments
It’s time to review your Microsoft Licensing
Microsoft licensing is easy to set and forget. It renews in the background, the apps keep working, and your team continues without interruption.
But businesses aren’t static. As teams grow, business operations can become more complex. At the same time, the products themselves are evolving. New features are released, inclusions change, and pricing adjusts.
The license that suited your business a few years ago may not be the right fit today. And with Microsoft announcing changes to its feature list and pricing, now’s the time to review your business’s licensing needs.
What’s changing
New inclusions and price points will come into play for Microsoft license agreements renewing after 1 July 2026. Those with renewals before July can lock in their current price for 12 months: a real opportunity if you can shift from monthly to annual billing.
All license tiers will get entry-level access to Microsoft’s AI, Copilot, to help draft and summarise content within apps like Word and Outlook. Business plans will get more storage for emails and URL time-of-click protection. Enterprise plans include stronger threat detection and smarter device-management tools.
Full Microsoft 365 Copilot functionality (like meeting transcription and work-context analysis) remains a separate add-on to all license types.
License prices are increasing for every business plan except Business Premium, making this an excellent-value option for many teams. Bigfish Technology partners can expect clear guidance on how these changes apply to their business, and the best-fit options for them.
Start with business
It’s easy for licensing discussions to get stuck in technical comparisons and inclusion checklists. But the real decision is commercial.
- What capabilities do your team need?
- What risks must you mitigate?
- Where does efficiency, flexibility and scalability matter most?
- How does your licensing complement non-Microsoft tools?
- How can you assign different licenses to balance capability and cost?
The right Microsoft licensing choice is the one that matches your priorities. That means balancing risk mitigation measures (like security and back-up) with productivity enablers (like AI tools and remote work enablers).
Understand the full IT picture
It’s important to recognise that Microsoft licensing is just one element of your technology stack. Often, combining your license with other services can better balance your organisation’s needs.
For example, most businesses benefit from a layered approach to cybersecurity. At Bigfish, we supplement Microsoft’s controls with additional tools to increase protection in a targeted and cost-effective way. Similarly, you probably have a range of line-of-business applications that may integrate or stand separate to the Microsoft suite.
Take the full picture into account to make sure you’re filling the right gaps, without paying for unnecessary overlap.
Microsoft License Overview
Let’s get into a practical summary of key Microsoft license types applicable to most small to medium businesses (SMBs). If you’d like to dig into the detail for your business context, our team would love to help.
Microsoft 365 Business Basic
Entry‑level license for light‑use staff who need reliable email, cloud storage and web‑based collaboration, without desktop apps or centralised device management.
What it enables
Business Basic provides core communication and collaboration tools accessible through web and mobile apps. That means:
- Staff can use Outlook, Teams, Word, Excel and PowerPoint in-browser or on mobile.
- Files can be stored and shared through OneDrive and SharePoint for simple, consistent collaboration.
- Email hosting is included, giving every team member a professional mailbox.
- From July 2026, users gain access to basic Copilot drafting and summarising in supported web apps.
What to be aware of
Business Basic doesn’t include desktop versions of the Office apps, which may limit productivity for staff who work heavily in Word, Excel or PowerPoint.
Microsoft 365 Business Standard
Basic license for teams that need dependable productivity and collaboration tools, without centralised security or device management.
What it enables
Business Standard provides core Microsoft apps and cloud collaboration tools. That means:
- Staff can work across Word, Excel, Outlook, Teams and more.
- Files are stored in OneDrive or SharePoint, making sharing simple and consistent.
- Everyone has access to familiar tools that support day‑to‑day communication and workflow.
- New access to basic Copilot drafting and summarisation in Office apps like Word and Outlook.
What to be aware of
Business Standard doesn’t include the ability to centrally manage devices or enforce consistent security policies. As your workforce grows or becomes more distributed, these gaps can create extra manual effort or security exposure.
Microsoft 365 Business Premium
As the only license type without a price increase, Business Premium stands out as a strong value for money license. Suitable for businesses with up to 300 staff, needing stronger protection for both users and their devices. Generally, the minimum license level for businesses aligning with the Essential Eight Maturity Model. Provides simple, consistent management across a hybrid workforce.
What it enables
Business Premium builds on Business Standard with stronger identity protection, centralised device management and safer data access. That means:
- New starters are onboarded faster, with pre-configuration options available.
- Lost or stolen laptops can be wiped remotely, including those under Bring Your Own Device (BYOD) policies.
- Staff can only access business data on approved, compliant devices.
- Security settings and updates are applied consistently across the organisation.
What to be aware of
Business Premium is a robust and modern baseline. However, organisations with complex governance or risk management needs may require enterprise-grade oversight. If you have up to 300 users, consider pairing Business Premium with the E5 Security Add-on, announced last year. Beyond 300 users, you’ll need to move to Enterprise plans.
Microsoft 365 E3
The next step for organisations that are scaling and need greater structure, governance and control over information, access and devices. Enterprise plans support unlimited users.
What it enables
E3 introduces more advanced data governance, compliance features and flexibility across larger or more diverse teams. In practice, this means:
- Important emails and documents can be retained or archived according to business rules.
- Access to sensitive information can be controlled more precisely across departments.
- Devices and applications can be managed with more detailed policies and configuration.
- Unlimited users for growing teams.
What to be aware of
E3 offers deeper capability, but it also requires more considered configuration. Businesses without clear governance processes or without an IT partner to guide setup may find the tools under‑used or inconsistently applied.
Microsoft 365 E5
For maturing organisations with heightened security or compliance requirements, plus additional storage capacity. Provides advanced, AI‑supported monitoring and protection.
What it enables
E5 adds advanced threat detection, analytics and AI‑driven insights across users, devices and data. In practice, this means:
- Suspicious activity can be detected faster, with richer context.
- Security teams gain dashboards showing risk trends and patterns across the organisation.
- Investigations and responses can be assisted by AI, reducing manual analysis time.
- New access to Security Copilot, analysing security threats within your Microsoft tenancy and suggesting next steps.
What to be aware of
While E5’s advanced protections are strong, it’s a big step up in price for many SMBs. To maximise business value, make sure you have experts on hand to interpret the insights available and advise a response. Businesses looking for a full work-aware Copilot AI experience will still need to add on the Copilot for Microsoft 365 license.
License Add-ons
While each user account needs its own Microsoft license, the discussion doesn’t stop there. Your review should also consider:
- M365 Copilot, with full work-context intelligence
- Teams Phone, for virtual phone system features
- Teams Rooms, for reliable meeting room functionality
- Standalone security measures, like Defender (for identify management) or Purview (for data protection and audit)
- E5 Security Add-on for full enterprise compliance features with the Business Premium plans.
- Windows Server licensing
We’re hardwired to help
A licensing review is an opportunity to ensure your tools still align with your goals. It’s one of the easiest ways to strengthen security, check value for money, and reduce friction for your team.
The good news is you don’t have to solve it on your own. We’re here for the big-picture commercial strategy, and in-detail tech advice. And we love to help. Reach out to discuss your needs today.
