SharePoint Plan 2 Features, Licensing, and On-Premises Options Explained
Question details
The user needs a comprehensive breakdown of SharePoint Online licensing, specifically the differences between Plan 1 and Plan 2, as well as information on on-premises deployment and kiosk licensing.

- Product
- Microsoft SharePoint
- Device & OS
- not provided
- Scenario
- Evaluating enterprise collaboration tools to decide on the appropriate Microsoft SharePoint subscription plan or server deployment model.
- Observed behavior
- Seeking clear documentation and guidance on plan capabilities, limitations, and the distinction between cloud-hosted SharePoint Online and on-premises SharePoint Server.
Before selecting a plan, evaluate your organization's compliance requirements, IT infrastructure capabilities, and the specific Microsoft enterprise or education subscription tiers currently in use.
Compare SharePoint Online Plan 1 and Plan 2 Features
Understand the core differences in capabilities and target audiences for SharePoint Online subscription plans.
SharePoint Online offers different tiers tailored to varying business needs. Understanding these tiers helps ensure you do not overpay for unused features while securing the capabilities your enterprise requires.
Plan 1 is typically included with Microsoft 365 business subscriptions. It offers standard team sites, basic document management, and essential intranet features suitable for small to medium-sized organizations.
Plan 2 is available with certain enterprise and education subscriptions (such as Office 365 E3 or E5). It introduces advanced capabilities including enterprise content management (ECM), advanced search, and in-place holds for compliance.
Navigate to the Microsoft SharePoint service description documentation online to review exact storage limits, data loss prevention (DLP) tools, and compliance features tailored to Plan 2.

Evaluate Cloud-Hosted vs. On-Premises Deployment Options
Determine whether a cloud-hosted architecture or an on-premises server deployment best suits your organization's security and management needs.
Enhance Your Enterprise Collaboration with WPS Office
While evaluating your SharePoint infrastructure for document management, consider equipping your team with a lightweight, highly compatible office suite. WPS Office provides a free, seamless alternative to Microsoft Office for creating, editing, and sharing documents across your enterprise.
- 1. Download the software: Visit the official WPS Office website and download the free installation package for your operating system.
- 2. Install and launch: Run the installer and follow the quick setup wizard to deploy WPS Office on your device.
- 3. Open and edit seamlessly: Double-click any existing Microsoft Office document to instantly open it in WPS Office without losing formatting.

Frequently Asked Questions
What is SharePoint Kiosk licensing?
SharePoint Kiosk (often branded as F1 or F3 frontline worker licenses) is designed for task workers or frontline employees. It provides read-only or limited access to SharePoint portals and documents at a significantly lower cost, without the full enterprise creation and management capabilities.
Can I upgrade from SharePoint Plan 1 to Plan 2 later?
Yes, organizations can upgrade their licensing from Plan 1 to Plan 2 or purchase Plan 2 add-ons through the Microsoft 365 Admin Center at any time to unlock advanced enterprise and compliance features.
Are there storage differences between Plan 1 and Plan 2?
Both plans generally offer a baseline of 1 TB of storage per organization plus 10 GB per purchased license. However, Plan 2 is often bundled with higher-tier Microsoft 365 plans (like E3/E5) that may include unlimited personal OneDrive storage and advanced compliance tools for managing large-scale enterprise data.




