M365 F3 vs. M365 F1: What’s the Difference?

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m365 f3
Reading Time: 4 minutes

Microsoft says that the M365 F3 and M365 F1 licenses aid first-line workers in day-to-day operations. First-line workers are the link between the business and the customers. They are tasked with customer service and creating a positive experience. Depending on how good first-line or frontline workers are, it directly impacts the number of sales a business makes.

So it makes sense for businesses and organizations to equip these workers with the best-in-line tools to streamline business operations. Microsoft offers these tools to every organization through its F3 and F1 packages.

But what’s the difference between these packages? We will explain that in this guide.

What Is Microsoft Office 365 F1?

Let’s start with Microsoft Office 365 F1 plan. Right out the bat, the F1 plan is limited. Take Microsoft Teams, for example. Microsoft Teams is a communication platform that employees use for videoconferencing. With the F1 subscription, employees can only make one-to-one calls.

This severely limits a team’s ability to communicate. A One-on-one call for a company’s frontline workforce isn’t the best option for a service specializing in online meetings.

Another limitation to the F1 license is that employees get no access to sensitive data. With an F1 plan, employees are in a “read-only” mode. They can’t make significant changes to the information, nor can they access sensitive data. That’s because Microsoft designs the F1 plan to be a low-cost solution for businesses and enterprises that want to equip their frontline workers with the tools to communicate with customers.

What Is Microsoft Office 365 F3?

Microsoft Office 365 F3 comes with powerful tools and features that streamline daily operations. These tools and features are designed to aid frontline workers with customer interaction, engagement, and brand representation.

The plan includes communication tools, productivity tools, and the Office 365 tools everyone uses at home. In a sense, it includes the core apps of Office 365 and grants additional virtualization rights, cloud management, all-around security, cross-platform integration, etc.

It is a costlier plan, but a plan that comes with Microsoft Advanced threat analytics and antivirus software. Each frontline worker gets access to the Windows Defender antivirus software, Windows Information Protection, and other security features that safeguard mobile devices and desktop PCs.

Comparing Microsoft Office 365 F1 and Microsoft Office 365 F3

In this segment of the comparison guide, we will look at the main differences between both plans, in addition to annual commitment (cost), desktop apps, mobile apps, and other Office apps, and other crucial features of both licenses.

Microsoft 365 F3 vs Microsoft 365 F1 – Main Difference

We will start this comparison guide with the main difference between both packages. Office 365 F1 plan includes tools for frontline workers. These tools are cloud-based, meaning employees get access to these tools in a remote environment. Office 365 F3, on the other hand, aims to give employees access to automation and digitization.

The tools and features included in Microsoft 365 F3 can streamline daily operations through cloud management, virtualization, protection, and more. While many cloud management features are included in F1, the main difference is that most of the features in F3 are advanced.

Microsoft 365 F1 vs Microsoft 365 F3 – Cost

The cost for both plans is another difference we need to touch on. We mentioned that Microsoft 365 F1 is a low-cost subscription in an earlier segment. The annual commitment for a single F1 subscription comes at $96. That’s $4 per person per month. Microsoft 365 F3, on the other hand, costs $10 per user per month.

However, the F3 plan comes with addons that streamline business operations to another level. Naturally, these addons will increase the price.

Microsoft 365 F1 vs Microsoft 36 F3 – Available Features

The features are probably the most important segment in this comparison guide and the one that you’re probably looking for the most. Fear not, as we will explain all the available features that both plans include.

Below is a table where you can see what features both plans include.


  • Office Apps
  • Email and Calendar
  • Communication Tools
  • Device and App Management
  • Social Apps
  • File-sharing Apps
  • Workflow Management
  • Threat Protection
  • Information Protection
  • Security Management


Office 365 and Office Mobile Apps

Microsoft Exchange, Microsoft Bookings

Microsoft Teams

Admin Center

SharePoint, Yammer, Viva Connections

OneDrive, Microsoft Stream


Azure Active Directory Integration

Microsoft Advanced Threat Analytics

Azure Information Protection

Microsoft Secure Score, Microsoft Security and Compliance Center


Office 365 and Office Mobile Apps

Microsoft Exchange, Microsoft Bookings, Microsoft Outlook

Microsoft Teams

Windows 11 for enterprise, Admin Center, Windows Autopilot

SharePoint, Yammer, Viva Connections

OneDrive, Microsoft Stream, Microsoft Sway, Microsoft Visio

Planner, Microsoft To Do, Power Virtual Agents, Power Automate, Power Apps

Azure Active Directory Integration, Windows, Hello, Credential Guard, direct access

Microsoft Advanced Threat Analytics, Microsoft Defender Antivirus and Device Guard

Azure Information Protection, Windows Information Protection, BitLocker

Microsoft Secure Score, Microsoft Security and Compliance Center

As you can see, Microsoft 365 F3 is a powerful subscription plan that comes with advanced threat protection, information protection, workflow management, and mobile device management features. Firstline workers with Windows Enterprise F3 subscriptions also have access to advanced cloud storage. For Microsoft 365 F1, OneDrive and Mail are limited to only 2 GB of storage and 750 monthly flows of Microsoft Flow. Microsoft 365 F3, on the other hand, comes with no Microsoft Flow or storage limitations. In addition, the F3 subscription allows meeting scheduling on Microsoft Teams.


Microsoft 365 F1 and Microsoft 365 F3 licenses are designed for first-line workers to provide customers with exceptional service and experience. The difference between both subscriptions is that the F1 license is limited in a few areas.

But some of these limitations will not impact your day-to-day operations. We hope that this guide explains the use of each license and helps you determine which one is best for your business.