Microsoft licensing

How to Choose the Right Microsoft 365 License Mix

The strongest Microsoft 365 setup is rarely one plan for everyone. Enterprise teams need to match E3, E5, F3, Office 365 E3 and Exchange Online to real user roles, service needs and annual cost impact. This guide explains how to build a practical license mix for a large tenant.

Alice Brüntrup
8 min read
June 23, 2026

The right license mix starts with user roles

A good Microsoft 365 licensing decision starts with people, not product names. Before choosing E3, E5 or F3, enterprise teams should understand how different groups work, which services they use every day and which roles need stronger control, analytics or compliance capabilities.

Core office users

Microsoft 365 E3 usually fits employees who need Office apps, Teams, Exchange, SharePoint, OneDrive, device management and standard enterprise controls.

Commitment model

Monthly, annual and renewal terms influence the final price. Enterprise buyers should compare the same term, currency and billing model before approving a quote.

Light users

F3, Office 365 E3 or Exchange Online may fit frontline, shared-device or email-only users who do not need the full enterprise stack.

Why list price is only part of the cost

Microsoft list pricing shows the public base price for a plan, usually per user per month and paid yearly. But enterprise licensing cost is shaped by the full tenant structure: how many users are assigned, which plans they use, what add-ons are attached and whether lighter user groups are separated from core knowledge workers.

  • Number of paid users and inactive accounts
  • E3 and E5 allocation across departments and roles
  • Frontline, shared mailbox and Exchange-only requirements
  • Copilot, Teams Phone, security and compliance add-ons

Example: Axeti pricing as a benchmark

Microsoft currently lists Microsoft 365 E3 at $36/user/month and E5 at $57/user/month, while Axeti annual pricing is €338.40 and €535.22 per user/year. For lighter users, Microsoft lists F3 at $8/user/month and Exchange Online Plan 1 at $4/user/month, while Axeti lists F3 at €66.91 and Exchange Plan 1 at €33.94 per user/year. Always compare the same currency, term and license scope.

How to compare Microsoft licensing offers correctly

A pricing comparison only works when every offer is normalized. The same license may look different depending on whether it includes Teams, which commitment is used, which add-ons are required and whether support or partner services are included in the commercial model.

  • Compare the same SKU, term, tenant model and currency
  • Separate core users from frontline and light users
  • Include add-ons before calculating total cost
  • Use annual cost per user and total tenant cost

How Axeti helps reduce licensing cost

Axeti compares the current license structure with Microsoft list pricing and CSP pricing, then highlights where annual spend can be reduced. The goal is not to cut licenses blindly, but to match the right commercial model and license depth to each user group without changing the existing tenant.

faq

Microsoft license pricing questions

What influences Microsoft license pricing the most?

The main drivers are plan type, user count, commitment model, region, add-ons, partner pricing and whether licenses match actual user roles.

Why can companies pay different Microsoft 365 prices?

Two companies may use different SKUs, currencies, commitments, discounts, CSP terms, add-ons and levels of license governance.

How should we compare Axeti and Microsoft pricing?

Compare the same license, billing term and currency. Axeti pricing is annual in EUR, while Microsoft public list prices are usually shown per user/month in USD.

Which licenses should we review first?

Start with high-volume plans such as Microsoft 365 E3, E5, F3, Office 365 E3 and Exchange Online, because small differences scale quickly.

Can licensing costs be reduced without tenant change?

Yes. Pricing and license mix can often be optimized commercially while keeping the existing tenant, users, data and security configuration unchanged.

Why do add-ons change the real price?

Add-ons such as Copilot, Teams Phone, security and compliance tools can significantly change total cost even when the base license looks affordable.

Can Axeti provide a pricing comparison?

Yes. Axeti can compare your current Microsoft license mix with CSP pricing and show where annual spend can be reduced without disrupting users.

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