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Summary: This summary discusses the need to upgrade Microsoft 365 subscriptions, outlines the differences between subscription types, and details the steps for switching or upgrading. It also highlights the complexity of tenant-to-tenant migrations and recommends the Kernel Office 365 Migration Tool for streamlined mailbox transfers.

The continually expanding business must maintain its agility and productivity to adapt to the latest market dynamics. Over recent years, cloud computing has enabled companies to scale efficiently with minimal financial outlay. Microsoft 365 offers numerous benefits to businesses, encompassing the comprehensive MS Office Suite, along with features like Exchange Online and SharePoint Online.

A Microsoft 365 subscription unlocks access to an array of impressive Microsoft suite tools. Yet, many businesses initially opt for the basic subscription plan and later find the need to upgrade their plans to better align with their evolving needs. In this blog, we will explore the process of upgrading your Microsoft 365 subscription, as well as the steps involved in migrating from one Microsoft 365 tenant to another.

Suggested Solution

In addition to upgrading your subscription, if you’re considering transferring data from one Office 365 tenant to another, consider utilizing the Kernel Office 365 Migration tool. It offers a swift and precise solution for this task.

Types of Microsoft 365 Subscription

Microsoft 365 subscriptions typically fall into three categories: Personal, Home, and Business. Many businesses initially opt for the Personal plan before eventually upgrading to Home or Business plans that better align with their evolving requirements.

The Microsoft 365 Personal subscription provides a single licensed user subscription for use on one system. In contrast, the Home and Business subscriptions offer distinct features and benefits. Here are some key points highlighting the differences between these two plans.

Home Subscription Business Subscription
  • Licensed for home use only
  • Can be used by up to 6 people
  • Log in with a Microsoft account
  • Email can be accessed with Microsoft account
  • Files are stored in OneDrive associated with Microsoft account
  • Receive latest features and updates for Office apps
  • Licensed for business use
  • Can be used for up to 300 users
  • Login with a User ID or work account
  • Email is stored in Microsoft 365 and can be accessed with an Microsoft 365 account
  • Files are stored in OneDrive for Business associated with user’s work or school account
  • Check for updates based on your operating system

Many businesses initially start with a Home plan and later find the need to upgrade to a Business subscription. However, if you currently have a Personal license, you can seamlessly upgrade to a Home license by using a valid product key.

If you’re considering upgrading to an advanced version of the Microsoft 365 subscription, there are two manual methods available. However, it’s important to note that both of these methods entail purchasing a new plan to facilitate the switch from your current one. Below, we have outlined both of these methods in detail.

  1. Switch to Microsoft 365 Business Plans: The simplest method to upgrade to Microsoft 365 business plans is by using the ‘Switch’ button in the admin center. When you initiate this switch, all users will be automatically assigned licenses from the new plan, and your previous plan will be canceled. Here are the steps to guide you through the process:
    • Go to, sign in to Microsoft 365 account and go to the admin center.
    • Now, go to Billing section and click the Subscription page.
    • On the subscription page, select Switch Plans to check the list of new available plans.
    • Choose the plan that you want and check the total cost per month. Also, be sure to check the Key information about the plan, and then click Next to check out.
    • o If you need any help regarding the subscription, then go to Microsoft online support page to directly communicate with the support team and raise any query.

    The switching process in Microsoft 365 may take some time to finalize. Once it’s completed, you can begin using your new subscription immediately. However, it’s worth noting that the ‘Switch Plans’ button may not be supported in every situation. In such cases, manual plan switching is required. Additionally, this option is applicable in the old admin center; for the new admin center, you can utilize the ‘Upgrade’ tab.

  2. Upgrade to Microsoft 365 Business Plans: The ‘Upgrade’ tab enables you to transition to an upgraded Microsoft 365 plan. When you make this move, all users will have their licenses automatically assigned. To proceed with the upgrade, follow the steps below:
    • Visit link, sign into you’re your Microsoft 365 account and go to the admin center. Click on Billing option. Switch the toggle to Try new admin center option on the top-right.
    • Now, go to Billing section and click Products & Services page.
    • The subscription details page will appear on the screen, select Upgrade.
    • Select the plan to which you want to upgrade, and then click the Upgrade button.
    • Enter the number of licenses that you want and choose whether you’ll pay every month or for the whole year, and then click Checkout.
    • On the checkout page, verify the Sold to Address, the Billed to information, and Items in order. You can select the payment method that best fits your needs. And if you need to make any changes in the subscription plan, then click Change next to the applicable section.
    • Once you’re making changes to the plan, click Accept agreement & place order.

After completing the checkout process, there will be a brief period during which the upgrade is finalized. During this time, you can monitor the upgrade status. Once the upgrade is successfully completed, you will receive a notification confirming the change. For more detailed information on upgrading from a Microsoft 365 Home subscription to a Business subscription, you can refer to the official Microsoft website.

Recommendations for Upgrade

If you have decided to upgrade your Microsoft 365 subscription, then it is recommended to consider these points:

  • Your system should meet the system requirements for the latest version
  • Uninstall the earlier version of Microsoft 365 before upgrading, just to ensure that there are no errors while performing the upgrade
  • Usually the files are not deleted when you uninstall the earlier version of Microsoft 365 before installing the newer version. But, if the earlier version contains Outlook, then it’s crucial to back up your Outlook data.

Upgrading a Microsoft 365 plan is a relatively straightforward process. However, when it comes to performing a Microsoft 365 tenant-to-tenant migration, the manual methods can be complex, often involving the use of PowerShell commands. To simplify this process, we recommend considering a third-party utility that enables you to seamlessly migrate Microsoft 365 mailboxes from one account to another.

Kernel Office 365 Migration Tool

This Office 365 Migration tool is a valuable solution, specifically tailored for transferring Microsoft 365 mailboxes to another Microsoft 365 account. It offers a range of advanced features, including selective data migration and the ability to include/exclude specific folders. Moreover, this tool facilitates the migration of Microsoft 365 mailboxes to an Exchange account. It is compatible with various Microsoft 365 subscriptions and Exchange versions, making it a versatile choice for mailbox migration needs.


Upgrading your Microsoft 365 account becomes essential as your business expands and requires advanced features. In this discussion, we covered the process of upgrading your Microsoft 365 subscription and also explored how to perform a tenant-to-tenant migration of Office 365 mailboxes.

Kernel Office 365 Migration