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SharePoint Online Licensing Guide

Microsoft SharePoint is one of the most widely used platforms for collaboration, content management, and document sharing in organizations of all sizes. To cater to various business needs, Microsoft offers multiple SharePoint plans: Plan 1, Plan 2, and a more comprehensive offering, SharePoint Premium.


SharePoint Online is a cloud-based service that helps organizations store, organize, share, and access information from any device. It is available as part of Microsoft 365, enabling employees to collaborate on documents, share knowledge, and manage projects in real-time.


PlanStorage CapacityExpansion OptionsIdeal For
Plan 11 TB per organization + 10 GB per licensed userFixed storageSmall to medium organizations
Plan 21 TB + 10 GB/user baseUnlimited storage as neededScaling organizations
SharePoint PremiumUnlimited storageUnlimited with prioritized supportLarge enterprises and mission-critical projects

FeaturePlan 1Plan 2SharePoint PremiumBusiness Value
Basic SearchFind documents, files, and sitesIncludedIncludedStandard content discovery
Advanced SearchNot availableeDiscovery and Content SearchIncludedLegal holds and data discovery
AI-Driven SearchNot availableNot availablePersonalized insights and AI-powered searchEnhanced content discovery across large datasets

CapabilityPlan 1Plan 2SharePoint PremiumBusiness Impact
Basic DLPNot includedDetect and prevent sensitive information sharingIncludedStandard data protection
Advanced DLPNot availableNot availableAI-powered security controls and automated MLProactive risk identification and mitigation

FeaturePlan 1Plan 2SharePoint PremiumBusiness Benefits
Basic ComplianceAccess controls and version historyIncludedIncludedEssential compliance management
Advanced ComplianceNot availableIn-Place Holds, eDiscovery, Retention PoliciesIncludedRegulatory compliance support
Enhanced ComplianceNot availableNot availableAutomated retention policies with advanced analyticsMonitoring adherence to compliance standards

Automation LevelPlan 1Plan 2SharePoint PremiumUse Cases
Basic AutomationPower Automate with simple workflowsIncludedIncludedTask automation
Advanced AutomationNot availablePower Apps, BCS integration, complex workflowsIncludedCustom app development
Enterprise AutomationNot availableNot availableAI-driven workflows, advanced integrationsLarge-scale business applications

Security FeaturePlan 1Plan 2SharePoint PremiumProtection Level
Basic SecurityData encryption in transit/at rest, access controlsIncludedIncludedEssential security
Advanced SecurityNot availableDLP and In-Place HoldsIncludedEnhanced information protection
Enterprise SecurityNot availableNot availableAI-powered compliance tools and advanced policiesMaximum protection for large organizations

Note: Microsoft Defender for Office 365 (formerly ATP) is not included in SharePoint plans but can be added separately as part of Microsoft 365 E5 or purchased as an add-on for advanced threat protection.


Analytics CapabilityPlan 1Plan 2SharePoint PremiumBusiness Value
Basic AnalyticsLimited analytics, no Power BI accessIncludedIncludedBasic usage insights
Advanced AnalyticsNot availablePower BI integrationIncludedBusiness intelligence reporting
Premium AnalyticsNot availableNot availableAI-powered insights and predictive analyticsReal-time dashboards and trend analysis

Integration LevelPlan 1Plan 2SharePoint PremiumBusiness Benefits
Basic IntegrationSharePoint features without deep M365 integrationIncludedIncludedCore functionality
Enhanced IntegrationNot availableTeams, OneDrive, Power BI, Exchange integrationIncludedVersatile collaboration
Enterprise IntegrationNot availableNot availableSeamless M365 integration with enterprise supportCutting-edge collaboration technologies

Organization TypeRecommended PlanKey Considerations
Small to Medium-Sized BusinessesPlan 1Affordable solution for standard collaboration and document management
Enterprises and Regulated IndustriesPlan 2Advanced security, compliance, and business automation capabilities
Large Enterprises and Mission-Critical ProjectsSharePoint PremiumPremium support, enterprise-level tools, and AI-driven automation

Each SharePoint plan offers unique features tailored to different organizational needs:

  • Plan 1 is perfect for businesses looking for basic functionality at a lower cost
  • Plan 2 adds advanced security, compliance, and workflow automation for larger organizations
  • SharePoint Premium provides AI integration and enterprise-grade tools for highly regulated industries or large-scale operations

Key Takeaway: Understanding the key differences between SharePoint Plan 1, Plan 2, and Premium enables you to make an informed decision that best supports your organization’s needs now and in the future.

Choose the plan that aligns with your organization’s size, compliance requirements, and collaboration needs to maximize the value of your SharePoint investment.