Monday, March 24, 2025

Microsoft 365 Licensing Guide: Choosing the Right Plan for Development, Automation, and SharePoint

Microsoft 365 subscriptions, such as:​

  • Microsoft 365 F3
  • ​ Microsoft 365 E3​
  •  Microsoft 365 E5​
  • Microsoft 365 A3
  • ​ Microsoft 365 A5
  • ​ Microsoft 365 Business Premium​
  • Microsoft 365 Education Student Use Benefit

Differences Between Microsoft 365 Subscriptions

Each Microsoft 365 subscription comes with different features tailored for specific use cases. Below is a comparison to help you decide which one suits your development needs.

PlanTarget AudienceKey FeaturesBest For Development?
Microsoft 365 F3Frontline WorkersWeb & mobile apps, 2GB mailbox, limited OneDrive (2GB), Teams❌ Limited developer tools
Microsoft 365 E3EnterprisesFull Office apps, 100GB mailbox, advanced security, 1TB OneDrive✅ Good for general development
Microsoft 365 E5Enterprises (Advanced Security & Compliance)Includes E3 + advanced security (Defender, Compliance, Power BI Pro)✅ Great if security & analytics are needed
Microsoft 365 A3Education (Schools, Staff)Similar to E3 but for education❌ Not for corporate development
Microsoft 365 A5Education (Advanced Security & Compliance)Similar to E5 but for education❌ Not for corporate development
Microsoft 365 Business PremiumSmall & Medium BusinessesIncludes Office apps, Intune, security, Defender✅ Suitable for business development
Microsoft 365 Education Student Use BenefitStudentsFree access to Office apps, Teams, and OneDrive❌ Limited enterprise tools

Which One is Best for Development?

If you're a developer working with Microsoft technologies like Power Platform, SharePoint, or Azure, you should go for:

  1. Microsoft 365 E3 – Good balance of features with enterprise-grade tools.

  2. Microsoft 365 E5 – Ideal if you need advanced security, Power BI Pro, and analytics tools.

  3. Microsoft 365 Business Premium – Works well for small/medium-scale projects.

How to Decide?

  • If your organization provides E3 or E5, it’s best for development.

  • If you need Power BI Pro, Microsoft Defender, and compliance tools, go for E5.

  • If you’re working in a small business or startup, Business Premium might be sufficient.


If you have Microsoft 365 E3 or E5, you should have:
Power Apps for Microsoft 365 (Limited to standard connectors)
Power Automate for Microsoft 365 (Limited to standard connectors)
SharePoint Online Plan 2 (If included in E3/E5)

If you need premium connectors, Dataverse, or AI Builder, you might require an additional Power Platform license.

Method 2: Check in Power Platform Admin Center

  1. Visit Power Platform Admin Center

  2. Navigate to Environments and select your default environment

  3. Click on Settings > Resources > Capacity

  4. Check if you have Dataverse (formerly CDS) and premium services enabled


Included in Microsoft 365 E3

  1. Power Apps (for Microsoft 365) – You can build and use canvas apps with standard connectors (e.g., SharePoint, Excel, Outlook).

    • Does not include premium connectors (Dataverse, SQL, SAP, etc.).

    • ❌ No access to standalone Power Apps environments.

  2. Power Automate (for Microsoft 365) – You can create automated workflows using standard connectors.

    • ❌ No RPA (Robotic Process Automation) or premium connectors.

  3. SharePoint Online Plan 2

    • Full SharePoint Online access with advanced features (eDiscovery, DLP, etc.).

    • ✅ Supports custom SPFx solutions, workflows, and integrations.

🔍 Limitations for Advanced Development

  • No Dataverse (Common Data Service)

  • No AI Builder or premium connectors

  • Limited Power Platform environments

  • No full-fledged Power Virtual Agents

🚀 Next Steps: What You Can Do

  1. For Full Power Platform Development

    • Sign up for a free Power Apps Developer Plan here

    • This gives you full Dataverse, premium connectors, and unlimited environments

  2. For Enterprise-Grade Development

    • If your org allows it, consider requesting Power Apps Per User Plan or Power Automate Premium

    • If you need RPA, Dataverse, or AI models, you may need additional licenses


Comparison: Power Apps Per User Plan vs. Power Automate Premium

FeaturePower Apps Per User PlanPower Automate Premium
PurposeDevelop and use unlimited appsBuild automated workflows, RPA, and integrations
Included AppsPower Apps (Canvas, Model-Driven)Power Automate (Cloud Flows, RPA, APIs)
Access to Dataverse✅ Yes✅ Yes
Premium Connectors✅ Yes✅ Yes
AI Builder Credits❌ No✅ Yes (AI-driven automation)
RPA (Robotic Process Automation)❌ No✅ Yes (Unattended & Attended bots)
API Requests per User/Day40,00040,000
Power Pages (Portals)✅ Yes (Limited use)❌ No
Best ForBuilding Power Apps with advanced connectors & DataverseAutomating processes, RPA, and AI-driven workflows
Ideal Use CaseIf you need to build enterprise appsIf you need advanced automation & RPA

Which One Should You Choose?

  • If you want to build and use advanced apps with Dataverse, get 👉 Power Apps Per User Plan

  • If you need automation, AI-based workflows, and RPA, get 👉 Power Automate Premium

Do You Need Both?

If you are building apps that require automation, you might need both plans. For example:

  • Power Apps to collect data from users.

  • Power Automate to trigger workflows, process approvals, or move data between systems.

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Licensing Requirements for SharePoint Development

1. Included in Microsoft 365 Plans (No Additional License Needed)

If you are developing within your organization's SharePoint Online environment, Microsoft 365 E3 (which you already have) includes:
SharePoint Online Plan 2 – Full access for developing and managing SharePoint sites, lists, and document libraries.
Power Automate for Microsoft 365 – Basic automation with standard connectors (e.g., SharePoint workflows).
Power Apps for Microsoft 365 – Limited to canvas apps with standard connectors (no premium connectors like SQL, Dataverse).

🔹 2. Additional Licenses Needed for Advanced SharePoint Development

If you require advanced SharePoint customization, integrations, or automation, you may need:

RequirementLicense Needed
SPFx (SharePoint Framework) DevelopmentNo extra license (included in SharePoint Online Plan 2)
Power Apps using Premium Connectors (SQL, Dataverse, etc.)Power Apps Per User Plan
Advanced Power Automate Flows (Premium Connectors, RPA)Power Automate Premium
Dataverse for SharePoint-based appsPower Apps Per User Plan
AI-Based Document Processing (OCR, AI Builder in SharePoint)AI Builder Add-on
Power BI Embedded Dashboards in SharePointPower BI Pro / Premium
External User Access for Custom Apps in SharePointPower Pages (formerly Power Apps Portals)

💡 Key Takeaways

  1. For standard SharePoint development (SPFx, Lists, Sites, Workflows, Power Apps with standard connectors)Microsoft 365 E3 is enough.

  2. For apps using premium connectors (SQL, Dataverse, APIs) → You need Power Apps Per User Plan.

  3. For RPA, AI, or advanced Power Automate workflows → You need Power Automate Premium.

  4. For embedding Power BI reports in SharePoint → You need Power BI Pro.


Office 365 vs. Microsoft 365 for Enterprise – Key Differences & Comparison

Microsoft offers two major enterprise productivity suites: Office 365 and Microsoft 365. While they seem similar, Microsoft 365 is a more comprehensive solution that includes everything in Office 365 plus advanced security, device management, and Windows licensing.


🔹 1. Key Differences

FeatureOffice 365 (Enterprise)Microsoft 365 (Enterprise)
Included AppsWord, Excel, PowerPoint, Outlook, OneNote, SharePoint, Teams, OneDriveEverything in Office 365 + Advanced Security, Device Management, and Windows 11 Enterprise
Windows License❌ Not included✅ Windows 11 Enterprise (E3/E5)
Security & ComplianceBasic security (Email encryption, DLP, ATP in E5)✅ Advanced security (Defender, Identity Protection, Threat Analytics)
Device & App Management❌ Limited✅ Intune (Mobile Device & App Management)
Enterprise Mobility + Security (EMS)❌ Not included✅ Included (Azure AD Premium, Conditional Access, MDM, etc.)
Best ForOrganizations needing productivity apps & collaboration toolsEnterprises requiring security, compliance, and device management in addition to Office apps

🔹 2. Licensing & Plans Comparison

Office 365 Enterprise Plans (Focus: Productivity & Collaboration)

PlanCost (approx.)Features
Office 365 E1₹660/user/monthWeb-based apps, Teams, SharePoint, Email (50GB), OneDrive (1TB)
Office 365 E3₹1,760/user/monthE1 + Desktop apps, 100GB Mailbox, eDiscovery, DLP, Office Scripts
Office 365 E5₹3,070/user/monthE3 + Advanced security, Compliance, Power BI Pro, Analytics

Microsoft 365 Enterprise Plans (Focus: Productivity + Security + Windows)

PlanCost (approx.)Features
Microsoft 365 E3₹2,640/user/monthOffice 365 E3 + Windows 11 Enterprise + Intune + Azure AD Premium
Microsoft 365 E5₹4,630/user/monthMicrosoft 365 E3 + Advanced Security (Defender, Identity Protection) + Power BI Pro

🔹 3. Which One Should You Choose?

If You Need...Go for Office 365Go for Microsoft 365
Just Office Apps & Collaboration✅ Yes❌ No
Windows 11 Enterprise & Security❌ No✅ Yes
Cloud-based Security & Compliance❌ No✅ Yes
Device Management (Intune, MDM)❌ No✅ Yes
AI & Threat Protection (Defender, Azure Security)❌ No✅ Yes

🚀 Key Takeaways

  • Office 365 = Productivity & Collaboration (For businesses that just need Office apps and cloud tools like Teams, SharePoint, and Exchange).

  • Microsoft 365 = Office 365 + Security + Windows (For enterprises needing advanced security, compliance, and device management along with productivity tools).



Check from Microsoft 365 Account Portal

  1. Go to Microsoft 365 Admin Center.

  2. Sign in with your Microsoft account (work or school).

  3. Click on Your Info (top-right profile icon).

  4. Under Subscriptions, you’ll see your assigned license.

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