If your organisation is paying for Microsoft Defender for Office 365 Plan 1 as a standalone add-on, and also licences users with most Microsoft 365 bundles, it’s worth reviewing your Microsoft licensing. Microsoft’s recent packaging changes mean some organisations may now have access to Defender for Office 365 protections within licences they already own.

For many UK businesses, this creates an opportunity to reduce unnecessary licensing costs without reducing security. As a Microsoft security partner and Microsoft CSP, we wanted to share that you might be paying for Defender for Office 365 twice.

What is Microsoft Defender for Office 365 Plan 1?

Microsoft Defender for Office 365 Plan 1 is Microsoft’s advanced email security platform. It builds on the protection included with Exchange Online and helps defend against modern email-based threats.

Key features include:

  • Safe Links to inspect malicious URLs
  • Safe Attachments to analyse suspicious files
  • Advanced anti-phishing protection
  • Enhanced anti-malware protection
  • Threat intelligence and reporting

These capabilities help protect organisations from phishing attacks, ransomware, credential theft and business email compromise.

Who Should Review Their Licensing?

For any business that is currently paying for the add-on Microsoft Defender for Office 365 is at risk of now getting access to this via their Office 365 and Microsoft 365 bundle. This review is particularly relevant if you have the following:

  • License users with Microsoft 365 Business Premium
  • License users with Microsoft 365 E3
  • License users with Microsoft 365 E5
  • License users with Office 365 E3 or E5

Microsoft’s 2026 licensing updates specifically highlighted Defender for Office 365 protections being included across a wider range of Microsoft 365 subscriptions.

How Much Does Defender for Office 365 Cost?

In the UK, Defender for Office 365 Plan 1 is typically around £1.44 to £1.61 per user per month excluding VAT through CSP licensing on annual commitments.

What could paying twice for Defender be costing my business?

At first glance that may not seem significant, but costs increase quickly as organisations grow.

Example annual costs

100 users

  • Approximately £144 to £161 per month
  • Approximately £1,728 to £1,932 per year

250 users

  • Approximately £4,320 to £4,830 per year (based on the same per-user pricing)

500 users

  • Approximately £8,640 to £9,660 per year (based on the same per-user pricing)

The Real Security Opportunity

This isn’t an argument for reducing security. The goal is to ensure you’re only paying once for the protection you need.

Many organisations have added security products over several years as cyber threats evolved. It is common to find businesses running Microsoft 365 Business Premium alongside separate Defender licences purchased at a different time by a different supplier.

If the same functionality is now included within your Microsoft subscription, those licences may no longer be necessary.

A Quick Licensing Health Check

Before your next Microsoft renewal, ask:

  • Are we paying separately for Defender for Office 365 Plan 1?
  • Which Microsoft 365 licences do our users have?
  • Are Defender protections already included in those subscriptions?
  • Could we reduce costs without reducing security?

For a 100-user organisation, the answer could be worth almost £2,000 per year in avoided licensing costs. For larger organisations, the savings can be considerably higher.

With Microsoft licence costs rising, now is the ideal time to review your security stack and make sure you’re not paying twice for protection you already own. At Bridgeall we are a Microsoft licensing provider that offers a free license review and access to discounted Microsoft licensing.