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What to Do When You've Reached the Limit of Microsoft 365 Business Premium

Scaling Beyond Microsoft 365 Business Premium: Enterprise Transition Guide

Section titled “Scaling Beyond Microsoft 365 Business Premium: Enterprise Transition Guide”

When your organization reaches the 300-user limit of Microsoft 365 Business Premium, it’s time to transition to enterprise-level plans. This guide outlines two strategic options to maintain the same security, productivity, and device management capabilities while scaling your organization.


OptionBase LicenseRequired Add-onsTotal Cost/UserComplexityKey Advantage
Option 1Office 365 E3Defender P2, Defender O365 P1, EMS E3$41.20HigherLower per-user cost
Option 2Microsoft 365 E3Defender P2, Defender O365 P1$43.20LowerSimplified management

Ideal for: Organizations prioritizing cost optimization with flexible license management

ComponentCost/UserCapabilityBusiness Value
Office 365 E3$23.00Core Office apps, cloud servicesProductivity foundation
Defender for Endpoint P2$5.20Advanced EDR, automated investigationEndpoint security
Defender for Office 365 P1$2.00Email threat protectionCommunication security
EMS E3$11.00Azure AD P1, Intune, AIP P1Identity & device management

Total Cost: $41.20 per user/month

Business Premium FeatureOffice 365 E3 + Add-ons Equivalent
Office Applications✓ Office 365 E3
Email & Collaboration✓ Office 365 E3
Advanced Security✓ Defender P2 + Defender O365 P1
Device Management✓ EMS E3 (Intune)
Identity Management✓ EMS E3 (Azure AD P1)
Information Protection✓ EMS E3 (AIP P1)

Ideal for: Organizations seeking simplified license management with comprehensive bundled features

ComponentCost/UserCapabilityBusiness Value
Microsoft 365 E3$36.00Office 365 E3 + EMS E3 + Windows EnterpriseUnified platform
Defender for Endpoint P2$5.20Advanced EDR, automated investigationEndpoint security
Defender for Office 365 P1$2.00Email threat protectionCommunication security

Total Cost: $43.20 per user/month

Business Premium FeatureMicrosoft 365 E3 + Add-ons Equivalent
Office Applications✓ Microsoft 365 E3
Email & Collaboration✓ Microsoft 365 E3
Advanced Security✓ Defender P2 + Defender O365 P1
Device Management✓ Microsoft 365 E3 (Intune)
Identity Management✓ Microsoft 365 E3 (Azure AD P1)
Information Protection✓ Microsoft 365 E3 (AIP P1)
Windows EnterpriseBonus feature

Terminal Services (Remote Desktop Services)

Section titled “Terminal Services (Remote Desktop Services)”
ScenarioBusiness PremiumOffice 365 E3 + EMS E3Microsoft 365 E3
Terminal Services Support✓ (with SCA)✓ (with EMS E3)✓ (built-in)
License AssignmentPer userPer userPer user
Management ComplexityLowHighLow

Recommendation: If all users require Terminal Services access, Microsoft 365 E3 provides the most streamlined solution.

FeatureBusiness PremiumMicrosoft 365 E3Business Impact
Windows Enterprise LicenseAdvanced security features
Credential GuardEnhanced credential protection
Application GuardBrowser isolation security
Windows Defender AdvancedEnterprise-grade protection

Important Note: Microsoft 365 E3 requires existing OEM Windows license (Pro or Home) for Enterprise upgrade.


Scenario 1: Mixed Environment (300 Business Premium + 300 Office 365 E3)

Section titled “Scenario 1: Mixed Environment (300 Business Premium + 300 Office 365 E3)”
User GroupLicense TypeCost/UserMonthly Cost
Group 1Business Premium$22.00$6,600
Group 2Office 365 E3 + Add-ons$41.20$12,360
TotalMixed$31.60 average$18,960

Scenario 2: Mixed Environment (300 Business Premium + 300 Microsoft 365 E3)

Section titled “Scenario 2: Mixed Environment (300 Business Premium + 300 Microsoft 365 E3)”
User GroupLicense TypeCost/UserMonthly Cost
Group 1Business Premium$22.00$6,600
Group 2Microsoft 365 E3 + Add-ons$43.20$12,960
TotalMixed$32.60 average$19,560
MetricOption 1 (O365 E3)Option 2 (M365 E3)Difference
Average Cost/User$31.60$32.60+$1.00
Total Monthly Cost$18,960$19,560+$600
Management ComplexityHigherLowerSignificant
Windows EnterpriseNot includedIncludedMajor value

  • Budget Priority: Cost optimization is critical
  • License Management: Complex license administration is acceptable
  • Windows Enterprise: Not required for your environment
  • Terminal Services: Limited user requirements
  • Simplicity Priority: Streamlined license management preferred
  • Terminal Services: Organization-wide implementation needed
  • Windows Enterprise: Advanced security features required
  • Future Growth: Anticipated need for additional enterprise features

PhaseActivitiesTimeline
AssessmentLicense inventory, user analysis, technical requirements2-4 weeks
PlanningLicense procurement, migration timeline, user communication4-6 weeks
ExecutionLicense assignment, feature configuration, user training6-8 weeks
OptimizationLicense consolidation, cost review, performance monitoringOngoing
  1. User Experience: Ensure seamless transition with minimal disruption
  2. Feature Parity: Verify all Business Premium features are replicated
  3. Security Continuity: Maintain protection levels during transition
  4. Cost Management: Monitor license utilization and optimize spend

Key Takeaway: While Office 365 E3 with add-ons offers a slight cost advantage ($1.00 per user), Microsoft 365 E3 provides superior value through simplified management, built-in Windows Enterprise licenses, and comprehensive feature bundling.

Microsoft 365 E3 + Add-ons is the preferred choice for most organizations because:

  • Simplified Administration: Single platform reduces complexity
  • Windows Enterprise: Significant added value at minimal cost difference
  • Terminal Services: Built-in support without additional components
  • Future Scalability: Better foundation for enterprise growth

Office 365 E3 + Add-ons may be suitable for organizations with:

  • Strict budget constraints
  • Existing Windows Enterprise licenses
  • Limited Terminal Services requirements
  • Sophisticated license management capabilities

The $600 monthly difference represents a small investment for significantly simplified operations and enhanced enterprise capabilities.