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MS-900 Practice Question: A company has 150 users with Microsoft 365…
A company has 150 users with Microsoft 365 Business Basic licenses. They now need to manage mobile devices using Microsoft Intune for all users. They want to keep costs as low as possible and do not want to upgrade to a more expensive plan if an add-on is available. What is the most cost-effective licensing strategy?
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Add Microsoft Intune licenses for all users
Microsoft Intune is available as a standalone add-on license for Microsoft 365 Business Basic, Business Standard, and other plans. By purchasing the Microsoft Intune license per user, the company can add device management capabilities to their existing Business Basic subscriptions without paying for other unnecessary features. Upgrading to Business Premium or E3 would include Intune but also many other features, increasing cost.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✓
Add Microsoft Intune licenses for all users
Why this is correct
Add Microsoft Intune licenses for all users is the correct choice. Microsoft 365 Business Basic includes Exchange Online, SharePoint, Teams, and Microsoft Entra ID P1 but lacks endpoint management. A standalone Microsoft Intune Plan 1 license, available as an add-on to Business Basic, provides cloud-based MDM/MAM for Windows, iOS, Android, and macOS with compliance and conditional access driven by the existing Entra ID tenant, at a per-user cost far lower than rebundling the entire business suite.
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Upgrade all users to Microsoft 365 Business Premium
Why it's wrong here
Upgrading all users to Microsoft 365 Business Premium is the wrong approach because it bundles Intune Plan 1 with many premium security services such as Microsoft Defender for Business, Defender for Office 365, and Microsoft Purview. While this would satisfy device management, it requires replacing the existing Business Basic licenses and paying a significantly higher per-user price for features the organization has not requested. The organization already has the productivity workloads it needs, so adding standalone Intune is the cost-effective path.
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Upgrade all users to Microsoft 365 E3
Why it's wrong here
Upgrading all users to Microsoft 365 E3 is an over-licensing error. E3 is an enterprise-tier suite that includes Intune, but it also bundles advanced compliance, eDiscovery, Office desktop applications, Windows Enterprise, and Power BI analytics, none of which were identified as requirements. Moving 150 users from Business Basic to E3 would incur enterprise-level licensing costs and an administrative migration to Enterprise Agreement terms, making it far more expensive than simply attaching Intune as an add-on to Business Basic.
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Purchase Microsoft 365 Enterprise Mobility + Security E3 add-on
Why it's wrong here
Purchasing Microsoft 365 Enterprise Mobility + Security E3 add-on is technically incompatible with Business Basic. EMS E3 is an enterprise suite designed to add to plans covered under an Enterprise Agreement or existing enterprise base subscriptions like Office 365 E3, and Microsoft licensing does not permit applying it to Microsoft 365 Business Basic. It bundles Intune with Microsoft Entra ID Premium P1 and advanced identity protection, but Business Basic already includes a baseline Entra ID P1, so the add-on would be duplicative, unsupported, and not available through the standard Business Basic channel.
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Benefits of Microsoft Cloud
Key term
Microsoft 365
Microsoft 365 is a subscription-based cloud service from Microsoft that combines productivity tools like Office apps with security, device management, and online storage.
Key term
User
A user is any person, system, or device that interacts with an IT service, resource, or identity system, typically authenticated through credentials and authorized to perform specific actions.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
This MS-900 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the MS-900 exam.