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M365 FM Podcast
M365 FM Podcast
The M365 FM Podcast is your daily destination for everything happening across the Microsoft cloud. We cover the full spectrum of Microsoft 365, including Teams, SharePoint, Exchange, OneDrive, and the tools driving the modern workplace. Each episode delivers practical insights, expert interviews, and hands-on strategies for IT admins, cloud architects, developers, power users, and decision-makers in the Microsoft ecosystem.

We explore the latest M365 updates, dive into Power Platform topics like Power Apps, Power Automate, Power BI, Power Pages, and share real-world guidance on automation, digital transformation, and low-code development. You’ll also get deep insights into Azure, including cloud infrastructure, Azure AD / Entra ID, identity, hybrid cloud, and Azure security.

The show features focused discussions on Microsoft 365 Security, Defender, compliance, DLP, Zero Trust, and the best practices needed to protect and optimize your environment. We also highlight how AI and Copilot for Microsoft 365 are transforming productivity, collaboration, and automation across the cloud.

Whether you want to improve Teams collaboration, strengthen security, enhance cloud architecture, or stay ahead of the latest Microsoft 365, Azure, Power Platform, and AI announcements, The M365 Podcast is your essential guide. M365 FM Podcast is Part of the M365.Show Network.
Oct. 24, 2026

Licensing in Microsoft 365 - Simply Explained

Licensing in Microsoft 365 - Simply Explained
Licensing in Microsoft 365 - Simply Explained
M365 FM Podcast
Licensing in Microsoft 365 - Simply Explained

Key Takeaways

  • Microsoft 365 licensing can be easily understood by breaking it down into two fundamental layers: the base plan and the add-on layer.
  • Understanding the differences between Business plans and Enterprise plans is crucial for optimizing your Microsoft 365 licensing strategy.
  • When comparing E3 versus E5 tiers, organizations must weigh the advanced security and compliance features against the higher price point.
  • Strategic placement of add-ons helps organizations avoid the common 'overlap trap' where they pay twice for similar capabilities.
  • Proper license assignment and monitoring ensure that your organization stays clean and avoids unnecessary over-spending.

Microsoft 365 licensing isn't as complicated as the price sheet makes it look. Underneath all those tiers, there are really just two layers to understand.

In this episode of Simply Explained you will learn:

  • What a license really is
  • Business plans and Enterprise plans
  • E3 versus E5
  • The add-on layer
  • Where Copilot fits
  • How licenses get assigned
  • The overlap trap
  • Staying clean
  • The short version

Simply Explained by M365.FM breaks down Microsoft 365, Azure and modern IT topics in clear, jargon-free language. Hosted by Mirko Peters.

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This episode includes AI-generated content.

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Frequently Asked Questions

What is Microsoft 365 licensing?

Microsoft 365 licensing is the subscription model that grants users access to cloud productivity tools, security features, and collaboration services like Teams, SharePoint, and Office apps.

What is the difference between Microsoft 365 E3 and E5?

Microsoft 365 E3 provides core productivity, compliance, and basic security tools, while E5 adds advanced security features, automated threat protection, advanced compliance capabilities, and integrated telephony.

How do I avoid the Microsoft 365 license overlap trap?

You can avoid the overlap trap by carefully auditing your base plans and add-ons to ensure you aren't purchasing standalone capabilities that are already included in higher-tier bundles.

Related to this Episode

Microsoft 365 E3 vs E5: Which Enterprise License Actually Saves You Money?

Choosing between Microsoft 365 E3 and E5 requires a careful look at built-in security, compliance tools, and per-user add-on costs. While E5 carries a significantly higher sticker price, organizations often save money by avoiding expensive third-par…