Question about best practice with multiple office 365 licenses

New Contributor

Hello there fellow MSies!


I have a question about how to handle multiple licenses under a single tenant.

If I understand correctly, when I create a tenant for domainX and have several users in there, and want them to be able to use office desktop apps and exchange online, I can for instance opt for the business premium license for each user. However, my question is, will every user then gain access to 1TB of storage? That would seem like a tad too much when you would create say.. 20 users who work in a

small office environment? Would I be able to create a 20TB sharepoint/onedrive file storage with that? (not that I want to but in theory)


What is Microsoft's way of thinking in this?


Considering the business premium account being € 10 a month, wouldn't it be cheaper to just buy seperate licenses for the desktop apps and get exchange online only € 4.20 a month?

I hope someone can answer my questions :)

Best regards,

Marijn Wijbenga
The Netherlands

4 Replies
You can indeed mix and match between licenses and for example buy the exchange online license and the pro plus for the office application but it’s mostly not worth it when you can have for example the business premium for just a few bucks more ( don’t have the price list in my head ) and get so much more!
Having sharepoint and onedrive is a huge benefit for example!

Yes, you get a lot of space with onedrive but you cannot reallocate the space to other onedrives or sharepoint spaces currently

best response confirmed by MarijnWijb (New Contributor)

Hi Marijn,

In the Business premium plan, all users have OneDrive for Business Plan 1 which is 1Tb per storage per person. If they have a plan which has OneDrive for Business Plan 2 such as E3 this is unlimited but starts out at 5Tb per user

All 365 plans contain a 25Tb SharePoint site

This is a lot of space for an SMB! This isn't pooled storage - you can't switch the storage space between users - but what you can do, lets say if you have a Business Premium Plan with 1Tb of OneDrive space, is either convert to an E3 which has OneDrive Plan 2 and unlimited space (starting at 5Tb) or simply add the standalone OneDrive Plan 2 on top. With SharePoint you can add to the 25Tb space with extra storage on a per Gb basis.

Hope that clarifies. Microsoft's thinking, originally, is providing space comparable to other vendors in the market such as Box but also to how organisations data is growing over time. It was the same with mailboxes which are now 50Gb by default.

With the desktop apps, the office in 365 is evergreen, always the latest version. If it is boxed copies like Office 2019 that is only a snapshot copy. Office 365 is already several increments beyond that at the current time.

Best, Chris

Wow thank you so much for the quick reply!


I will bookmark and read your links because the answers created more questions than I can fathom at the moment :)

Thank you both very much and if I have any more questions then let us pretend to be classical composers and....


Thank you Adam for the help and quick reply! I will dive further into the subject matter and hope to discuss more in the future!

Best regards,