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MS-900 Practice Question: A non-profit organization with 300 users needs to…

A non-profit organization with 300 users needs to deploy Microsoft 365 Business Basic for all users. They also require device management via Microsoft Intune for 50 users who use company-owned mobile devices. The organization is eligible for non-profit pricing. What is the most cost-effective licensing approach?

⚠ Common exam trap

It's easy for candidates to assume device management requires an entire suite upgrade (e.g., Business Premium or E3) rather than recognizing that Intune Plan 1 can be purchased as a cost-effective standalone add-on for specific users, leveraging the existing base license.

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 Intune Plan 1 add-on licenses for the 50 users who need device management

Microsoft 365 Business Basic provides the core productivity and collaboration tools (Exchange Online, Teams, SharePoint) needed by all 300 users. For the 50 users requiring device management, purchasing Microsoft Intune Plan 1 as an add-on license is the most cost-effective approach because it adds mobile device management (MDM) capabilities to their existing Business Basic subscription without upgrading the entire tenant or purchasing more expensive suites. Non-profit pricing applies to both the base license and the add-on, minimizing costs.

Answer analysis

Option-by-option breakdown

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

  • Assign Microsoft 365 Business Premium to all 300 users

    Why it's wrong here

    Assigning Microsoft 365 Business Premium to all 300 users licenses Intune for every user, yet only 50 need device management. At approximately $22/user/month for Business Premium versus about $6/user/month for Business Basic plus an $8/user/month Intune Plan 1 add-on for only 50 users, this approach costs roughly $3,400 more per month. It also forces all 300 users to receive premium security and compliance features they may not require, making it an inefficient over-licensing choice.

  • Purchase Microsoft Intune Plan 1 add-on licenses for the 50 users who need device management

    Why this is correct

    Intune Plan 1 is available as a standalone per-user add-on that can be layered onto Microsoft 365 Business Basic, and licenses can be selectively assigned in the Microsoft 365 admin center to only the 50 users responsible for device management. Because the add-on is independent of the base subscription tier, you pay a low per-user price (about $8/user/month) for just those users, while the other 250 users remain on plain Business Basic. This delivers the required MDM/MAM capability at the absolute lowest licensing cost and avoids paying for extra suite features.

  • Create a separate Microsoft 365 Business Basic tenant for the 50 users and include Intune

    Why it's wrong here

    Standing up a separate Microsoft 365 tenant for these 50 users provides no per-user license pricing advantage—they still must be licensed for Intune, either as an add-on or via a suite. It also forces you to maintain a second directory, separate Exchange Online mailboxes, separate domains, and tenant-to-tenant collaboration governance, which is significantly more complex and expensive to administer. The total cost of ownership is higher than simply adding Intune Plan 1 to your existing Business Basic tenant, and it creates a siloed identity boundary for no technical benefit.

  • Purchase Microsoft 365 E3 licenses for the 50 users

    Why it's wrong here

    Microsoft 365 E3 is an enterprise suite that includes Intune, but it is priced at roughly $36/user/month or more, which is about four times the cost of Business Basic plus an Intune Plan 1 add-on for those 50 users. E3 also brings many enterprise-only features such as advanced eDiscovery, information protection, and advanced audit that are irrelevant to a device-management requirement. Buying E3 for a subset of users means paying the full suite price for every one of them even though you only need one component, making it a far more expensive way to achieve the same MDM outcome.

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Last reviewed: Jun 11, 2026

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