Overview

Licensing overview

For Singapore businesses 9 min read Updated May 2026

Microsoft 365 is sold as recurring subscriptions, not perpetual license keys. Understanding plan families helps you match cost to how people actually work—without paying for desktop Office on accounts that only need mail and Teams.

Plan families bundle different mixes of apps, security, and management
Plan families bundle different mixes of apps, security, and management

Plan families at a glance

Family Typical organization Highlights
Microsoft 365 Personal / Family Home users Not for business `@yourdomain` mail
Business Basic, Standard, Premium SMEs (often up to 300 users) Mail, Teams, OneDrive; Standard adds desktop Office
Enterprise E3 / E5 Larger or regulated firms Advanced security, compliance, analytics
Frontline (F1, F3) Shift and deskless workers Lighter feature set, different pricing model

Names change over time; always confirm current feature matrices on Microsoft's official pages when procurement requires primary sources. This guide summarizes for planning conversations.

What usually differentiates tiers

  • Desktop Office apps (installable Word/Excel) vs web-only
  • Microsoft Defender and advanced threat protection
  • Intune device management and conditional access depth
  • Compliance tools (eDiscovery, advanced audit, retention labels)
  • Power Platform and Copilot entitlements (often add-ons or higher tiers)
Higher tiers add security and management depth—not just more storage
Higher tiers add security and management depth—not just more storage

Subscription mechanics partners use

  • Monthly vs annual terms affect price and change flexibility under New Commerce Experience (NCE) rules.
  • Seat changes prorate when you add or remove users mid-term (partner policies may add service fees).
  • Trials help pilots but should not replace a written rollout and security plan.

Decisions to lock before you buy

1. Count of users needing Exchange mailboxes

2. Count needing installable Office

3. Shared mailboxes and room mailboxes (often no extra license if rules are met)

4. Mobile device policies—do you need Intune?

5. Archive and retention expectations for finance or legal

Working with a CSP partner

Most SMEs buy through a Cloud Solution Provider partner who bills in local currency and assists with tenant setup. For THB/SGD comparisons and SKU fit, use M365 Deals or contact for a written quote tied to your rollout scope.