Guest blog courtesy of Augmentt.
One of the most common objections MSPs hear when proposing security improvements is also one of the most frustrating: 'We'd need to upgrade our licensing for that.' It happens frequently enough that many MSPs have come to accept it as a hard constraint: some security capabilities just require premium licensing, and SMB clients won't pay for it.The good news is that this assumption is largely wrong. With the right tooling and a clear framework, MSPs can deliver meaningful, defensible security baselines across Microsoft 365 environments regardless of whether clients are on Business Basic, Business Standard, or Business Premium.For clients with Business Premium or E3/E5, the baseline extends to include Conditional Access policies replacing Security Defaults, Defender for Business threat protection, Intune device compliance, and Privileged Identity Management for admin access.
What premium licensing actually unlocks
It's worth being precise about what premium licensing genuinely enables versus what's often assumed to require it. Microsoft 365 Business Premium (and enterprise E3/E5 tiers) unlock capabilities like Conditional Access policies, Defender for Business, Entra ID P1/P2 features, and Intune device management. These are legitimately powerful and worth having where budgets allow.But the absence of premium licensing doesn't mean an environment has no security controls available. It means you're working with a different — not an empty — toolset. Security Defaults, per-user MFA, mailbox audit logging, anti-phishing policies, safe links, and safe attachments are all available at lower license tiers and meaningfully reduce risk when properly configured.Building a tiered baseline framework
The most practical approach for MSPs is a tiered baseline model: a set of security configurations that apply universally regardless of licensing, and additional configurations that layer on for clients with premium tiers. This approach lets you deliver consistent baseline protection across your entire client base while offering premium clients an enhanced posture.A universal baseline — applicable to all license tiers — should include:- Multi-Factor Authentication enforced for all users (Security Defaults or per-user MFA at lower tiers)
- Legacy authentication protocols blocked across Exchange, SharePoint, and Teams
- Mailbox auditing enabled for all accounts
- Admin role assignments reviewed and least-privilege enforced
- External sharing policies configured conservatively
- Anti-spam and anti-phishing policies tuned to recommended settings




