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MS-900 Practice Question: Describe Microsoft 365 pricing, licensing, and support

A customer has 100 users on Microsoft 365 Business Basic and wants to add Microsoft Defender for Office 365 Plan 1. Which licensing approach should they use?

⚠ Common exam trap

Candidates often assume Defender for Office 365 Plan 1 is a standalone product or that it is included in E3, when in fact it is an add-on that requires a qualifying base license and is not bundled with E3.

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

✓

Purchase Microsoft Defender for Office 365 Plan 1 as an add-on for each user

Microsoft Defender for Office 365 Plan 1 is an add-on that can be purchased for users who already have a qualifying subscription like Microsoft 365 Business Basic. It provides advanced threat protection features such as Safe Attachments and Safe Links, and it must be assigned per user on top of an existing Microsoft 365 license. Option C is correct because it directly describes this additive licensing model.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • ✗

    Purchase a separate Microsoft Defender for Office 365 Plan 1 subscription without underlying Microsoft 365 licenses

    Why it's wrong here

    Microsoft Defender for Office 365 Plan 1 is an add-on, not a standalone service. It must be layered on an active eligible Microsoft 365 plan such as Business Basic for each user, because it has no mailbox or basic email infrastructure of its own. Purchasing it separately without underlying licenses leaves you with no user base to assign the add-on to, violating Microsoft's licensing requirements and providing no functional email protection.

  • ✗

    Upgrade all users to Microsoft 365 E3

    Why it's wrong here

    Upgrading all 100 users to Microsoft 365 E3 would indeed provide Defender for Office 365 Plan 1, but it would also force you to pay for Windows 10/11 Enterprise and enterprise mobility and security features that are completely unrelated to email protection. This bundle is priced significantly higher than Business Basic, making it an unnecessarily expensive route to secure only your Exchange Online mailboxes. A targeted add-on is the correct, cost-effective licensing approach for this scenario.

  • ✓

    Purchase Microsoft Defender for Office 365 Plan 1 as an add-on for each user

    Why this is correct

    Because Microsoft 365 Business Basic is an eligible base subscription, you can directly purchase Defender for Office 365 Plan 1 as an add-on for each of the 100 users and assign it to them through the Microsoft 365 admin center. This leaves the existing Business Basic licenses untouched, avoids any migration or plan-change overhead, and activates the advanced email threat protection capabilities you need: anti-phishing, anti-spam, and real-time suspicious message detection. With no extra Windows or mobility features, this is precisely the minimal licensing change that fulfills the customer's requirement.

  • ✗

    Upgrade to Microsoft 365 E5

    Why it's wrong here

    Microsoft 365 E5 includes Defender for Office 365 Plan 2, which goes far beyond Plan 1 by adding automated investigation and response, simulation training, and advanced threat hunting tools. Those features are not needed in this scenario, and E5's per-user cost is dramatically higher than the sum of a Business Basic plus Plan 1 add-on. Thus, upgrading to E5 would solve the technical gap but create a substantial licensing cost overrun, making it the wrong answer.

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JA

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.