What Microsoft 365 license do we actually need?

Without turning this into a licensing lecture, the practical shape for a business under 300 users:

• Business Basic: email and web versions of Office. Fine for frontline staff who do not need desktop apps.
• Business Standard: adds the desktop Office applications. The default for most office staff.
• Business Premium: adds the security and device management pieces. This is the one most small businesses should be on, and the difference in cost is smaller than most people assume.

The Premium argument is straightforward: it includes device management, conditional access, and advanced threat protection that you would otherwise buy separately or, more commonly, go without. For a business handling client data or facing any compliance requirement, it is usually the cheapest way to get controls you actually need.

The other half of this question is what you are paying for now. Almost every tenant we review has licenses assigned to people who left, duplicate subscriptions bought at different times, or a mix of plans nobody planned. That review takes an hour and frequently pays for itself.