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License & Subscription Issues

SharePoint Plan 2 Features, Licensing, and On-Premises Options Explained

WPS EditorWPS Editor Sep 28, 2026 870 views

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.

SharePoint Plan 2 Features, Licensing, and On-Premises Options Explained
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 you start

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.

Solution 1Recommended

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.

1
Identify Plan 1 inclusions

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.

2
Review Plan 2 enhancements

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.

3
Consult official service descriptions

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.

Compare SharePoint Online Plan 1 and Plan 2 Features
Licensing Requirement: Users needing access to advanced Plan 2 features must have the corresponding Plan 2 license assigned to their Microsoft 365 account.
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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.