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License & Subscription Issues

What Happens When Switching Microsoft 365 Business Premium to Office 365 E1?

Muhammad TalhaMuhammad Talha Oct 9, 2026 868 views

Question details

Understanding the feature, software, and capability changes when an organization downgrades its user licenses from Microsoft 365 Business Premium to Office 365 E1.

What Happens When Switching from Microsoft 365 Business Premium to Office 365 E1?
Product
Microsoft 365
Device & OS
not provided
Scenario
An administrator is planning to change user subscriptions from Business Premium to E1 and needs to evaluate the impact on daily operations and IT management.
Observed behavior
Upon switching, users retain core web applications and data, but lose access to desktop Office apps, Microsoft Intune, Microsoft Defender, and Microsoft Entra ID Premium P1.
Before you start

Before altering any active user licenses in the Microsoft 365 admin center, thoroughly audit your organization's current reliance on desktop applications, advanced security protocols, and mobile device management to prevent sudden workflow disruptions.

Solution 1Recommended

Evaluate Feature Differences and Prepare for the Transition

Compare the key differences between the two enterprise plans to fully understand the exact impact on your end-users and IT infrastructure.

Downgrading from Business Premium to E1 primarily affects local software availability and advanced security management. It is crucial to adjust your IT policies and communicate these changes to your team before applying the new license.

1
Audit Desktop Application Usage

Office 365 E1 does not include licenses for the desktop versions of Word, Excel, or PowerPoint. Inform users that their desktop apps will deactivate and they will need to rely exclusively on the web-based and mobile versions of Office.

2
Review Security and Compliance Configurations

You will lose access to Microsoft Defender for Business and Microsoft Information Protection. Ensure you have alternative third-party security measures configured for endpoint protection and data loss prevention before making the switch.

3
Plan for Device Management Changes

Microsoft Intune is excluded from the E1 plan. If you currently use Intune for Mobile Device Management (MDM), you must migrate devices to a different MDM solution or remove the existing device management policies to avoid connectivity issues.

4
Update Azure AD Capabilities

Business Premium includes Microsoft Entra ID (formerly Azure AD) Premium P1. Advanced identity features like Conditional Access and identity protection will be disabled upon switching to E1, so you must update your access policies accordingly.

Evaluate Feature Differences and Prepare for the Transition
Data Retention Notice: User data, including emails in Exchange Online and files stored in OneDrive, is generally retained during a license switch. To ensure seamless access, assign the new E1 license to the user before removing the Business Premium license.
Free Microsoft Office alternative

Keep Desktop Office Apps with WPS Office

Switching to Office 365 E1 means your team will lose access to Microsoft's desktop applications. WPS Office offers a powerful, lightweight, and completely free alternative to ensure your workflow remains uninterrupted with fully featured desktop software.

  1. 1. Download the Application: Visit the official WPS website and download the free desktop application for your specific operating system.
  2. 2. Install the Software: Run the downloaded installer and follow the simple on-screen prompts to set up the WPS Office suite on your computer.
  3. 3. Open Your Existing Files: Launch WPS Office and directly open your existing .docx, .xlsx, and .pptx files to continue working seamlessly without a Microsoft desktop license.
Seamlessly open, edit, and save Microsoft Word, Excel, and PowerPoint formats.Full desktop applications available for Windows, Mac, and Linux.Familiar user interface requiring no retraining for your team.Lightweight installation that saves system resources and allows full offline editing.
microsoft office alternative - wps office

Frequently Asked Questions

Will I lose my files or emails when switching from Business Premium to E1?

No, your user data, including emails and OneDrive files, is retained during the transition. However, administrators should ensure the E1 license is applied to the user account before the Business Premium license is removed to prevent temporary lockouts.

Can I still use the Microsoft desktop applications I already installed?

Once the Business Premium license is removed, your installed desktop applications will enter a reduced functionality mode. You will be able to view and print documents, but you will not be able to create or edit them unless you purchase a separate desktop license or switch to a free alternative like WPS Office.

Does Office 365 E1 include Microsoft Teams?

Yes, Office 365 E1 includes both the web and desktop versions of Microsoft Teams, allowing your organization to continue chatting, hosting meetings, and collaborating without interruption.